HotStats UK Chain Hotels Market Review – August 2014
Profit growth for UK Provinces and West Midlands; London bounces back
With London's profitability bouncing back with positive year-on-year comparison in August, the UK Provinces go from strength to strength with gross operating profit per available room (GOPPAR) showing a double digit growth, and West Midlands hoteliers recording an 11.1% surge in this metric, according to the latest HotStats.
Simultaneous increases of 8.2% in average room rate (ARR) and of 0.7 percentage points in occupancy for West Midlands hoteliers boosted rooms revenue per available room (RevPAR) by 9.4%. Non-rooms revenues also showed positive movements and total revenue per available room (TRevPAR) grew by 8.2% compared to the same period last year.
Hoteliers also managed to reduce payroll by 0.4 percentage points to 35.2% as well as operating costs to deliver a departmental operating profit per available room (DOPPAR) growth of 8.6%. Despite overheads per available room climbing by 6.5%, GOPPAR shot up by 11.1% representing a gross operating conversion of 23.5% for the month.
Sunshine for Brighton
Hotels in the seaside destination recorded a strong month of August with TRevPAR and GOPPAR surging by 8.6% and 15.0% respectively, according to the latest HotStats.
A combined growth in occupancy of 4.3 percentage points to 87.3% and in ARR of 6.8% generated a RevPAR uplift of 12.3% for Brighton hoteliers. Despite revenue per available room derived from C&B room hire declining by 15.4%, food and beverage showed positive movements by 1.3% and 1.7% respectively and TRevPAR grew by 8.6%.
Astute operating cost control helped to enhance DOPPAR levels by 10.8%. Despite overheads per available room increasing by 3.9%, payroll dropped by 2.1 percentage points and as a result GOPPAR shot up by 15.0% representing a gross operating conversion of 42.2% for the month.
Blue sky for Southampton
Southampton hotels also recorded a positive month of August with TRevPAR and GOPPAR rising by 2.0% and 4.9% respectively, according to the latest HotStats.
With both occupancy (+2.9 percentage points to 89.9%) and ARR (+2.9%) increasing, Southampton hotels experienced a RevPAR growth of 6.3%. Mixed performances were recorded in ancillary departments and TRevPAR went up by only 2.0%. Efficient cost control further fuelled this revenue gain with DOPPAR increasing by 1.6%, and with payroll and overheads per available room declining by 0.4 percentage points and 2.2% respectively. As a result, GOPPAR went up by 4.9% representing a gross profit conversion of 30.4% for August.