Source: HotStats Limited

Profits momentum for UK Provinces and North West, but London declined again

Although London profitability dropped for a third consecutive month in July, the UK Provinces continued to gain momentum with gross operating profit per available room (GOPPAR) surging and North West hoteliers experienced a 22.2% growth in this metric, according to the latest HotStats.

North West hotels managed to increase average room rate (ARR) by 11.5% as well as occupancy (+3.1 percentage points to 80.8%) in July resulting in rooms' revenue per available room (RevPAR) climbing by 15.9%. With revenue per available room derived from food (+5.1%), beverage (+4.8%) and meeting room hire (+11.2) also climbing, total revenue per available room (TRevPAR) grew by 10.4%.

Despite overheads per available room going up by 6.2%, astute operating cost control coupled with payroll declining (-1.6 percentage points) led to the GOPPAR growth of 22.2% representing a gross profit conversion of 32.2%.

Tour de profit for York

The city which hosted in July the departure of the second Tour de France stage registered increases in TRevPAR and GOPPAR by 9.5% and 8.4% respectively, according to the latest HotStats.

Despite a 0.3 percentage point drop in occupancy, hoteliers in York experienced a double digit increase in RevPAR thanks to a 12.7% surge in ARR. Positive performances were recorded in non-rooms departments, in particular with meeting room hire per available room (+41.4%) leading to a TRevPAR surge of 9.5%. Departmental operating profit per available room (DOPPAR) also rose by 8.2% thanks to efficient operating cost control and payroll going down by -0.3 percentage points. Despite overheads per available room increasing by 8.0%, GOPPAR hiked by 8.4% for the 10th consecutive month.

Swindon on the up-and-up

Hoteliers in Swindon experienced year-on-year growth across all key performance indicators with TRevPAR and GOPPAR increasing by 14.7% and 38.9% respectively, according to the latest HotStats.

A combined surge in occupancy (+5.2 percentage points) and in ARR (+12.0%) contributed to a RevPAR growth of 19.0%. With 44.9% of the demand in July derived from the corporate sector, this segment rate surged by 9.1%. However the highest rate increase (+16.4%) was generated by from the residential conference segment which accounted for 8.8% of the total demand. Positive results were also registered in ancillary departments and TRevPAR rose by 14.7%.

With DOPPAR rising by 18.2%, hoteliers also managed to reduce payroll and overheads per available room by 4.4 percentage points and by 3.6% respectively. As a result GOPPAR increased by a stunning 38.9%, further fuelling calendar year to date and the rolling 12 months to July performances.

The hotels profiled in this report are drawn from the HotStats database and reflect the portfolios and distribution of the hotel chains that we survey and which operate in the full-service sector.

Please note: The data samples are reviewed and rebased each year to reflect the changes in the HotStats survey base. As a result, performance ratios published last year may differ from those contained within this report.
Occupancy (%) is that proportion of the bedrooms available during the period which are occupied during the period.
Average Room Rate (ARR) is the total bedroom revenue for the period divided by the total bedrooms occupied during the period.
Room RevPar (RevPAR) is the total bedroom revenue for the period divided by the total available rooms during the period.
Total RevPar (TRevPAR) is the combined total of all revenues divided by the total available rooms during the period.
Payroll % is the payroll for all hotels in the sample as a percentage of total revenue.
GOPPAR is the Total Gross Operating Profit for the period divided by the total available rooms during the period.

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©HotStats Limited 2014. Unless otherwise attributed, all material in this press release is the copyright of HotStats Limited.

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