HotStats UK Chain Hotels Market Review – September 2014
UK Provinces and Scotland shine against London hotels’ flat profitability movements
Whilst London's hotel profitability showed positive year-on-year movements in the month of September, the UK provinces put the capital's performance in shade with gross operating profit per available room (GOPPAR) showing a double digit growth. In particular, Scottish hoteliers recorded a 27.3% surge in this metric, according to the latest data from HotStats
Whilst London's hotel profitability showed positive year-on-year movements in the month of September, the UK provinces put the capital's performance in shade with gross operating profit per available room (GOPPAR) showing a double digit growth. In particular, Scottish hoteliers recorded a 27.3% surge in this metric, according to the latest data from HotStats
With occupancy remaining virtually flat, hotels in Scotland increased average room rate (ARR) by 21.7%, resulting in rooms revenue per available room (RevPAR) climbing by 21.6% to £98.56. Besides food and beverage, all non-rooms departments recorded positive performances leading to a 13.6% growth in total revenue per available room (TRevPAR).
Astute payroll and operating cost control helped to enhance departmental operating profit per available room (DOPPAR) by 20.0% to £97.97 and although overheads per available room jumped by 7.3%, GOPPAR went up by 27.3% to £67.74.
Bristol hotels grow top and bottom-line
In September, Bristol hotels recorded significant year-on-year growth across all key performance indicators with TRevPAR and GOPPAR increasing by 19.8% and 43.4% respectively, according to the latest HotStats.
A combined surge in occupancy of 5.6 percentage points to 84.8% and in ARR of 17.6% generated a RevPAR uplift of 25.9% compared to the same period last year. Positive performances were recorded in non-rooms departments, particularly in leisure revenue per available room (+20.2%) and meeting room hire per available room (+18.9%) leading to a TRevPAR surge of 19.8%.
DOPPAR also rose by 26.9% thanks to efficient operating cost control and payroll going down by -2.4 percentage points. Despite overheads per available room increasing by 6.6%, GOPPAR still shot up by a stunning 43.4% to £42.05.
Profits also up in Milton Keynes
Milton Keynes hoteliers also recorded a positive month of September with TRevPAR and GOPPAR rising by 8.1% and 43.1% respectively, according to the latest HotStats.
With a rise in both occupancy (+2.8 percentage points to 82.1%) and ARR (+9.5%), Milton Keynes hotels experienced a RevPAR growth of 13.3%. Mixed performances were recorded in ancillary departments and TRevPAR went up by only 8.1%. Efficient cost control and reduced payroll (-0.7 percentage points) led to a 9.7% DOPPAR increase, and as a result GOPPAR hiked by 43.1% to £41.54, representing a gross operating conversion of 45.6% for the month.
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.
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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