UK Q3 Ends on High Note with RevPAR and GOPPAR Gains
The third quarter ended on a positive note for UK hotels as profit per available room increased on a year-over-year basis for the second consecutive month, according to data from HotStats. The 1.6% YOY GOPPAR boost hints towards what hoteliers hope will be the turnaround of an otherwise unremarkable year.
The leisure and corporate segments commanded the growth in RevPAR, with a 2.1% and a 5.1% YOY rate increase, respectively. Combined, they accounted for 50.3% of the total room nights sold in the month.
Other revenue centres did not share these positive results. Ancillary revenues fell by 2.4% YOY, led by a 4.5% YOY decline in conference and banqueting and a 2.6% YOY decrease in F&B. Nonetheless, total revenue per available room managed to increase by 1.8% YOY fueled by RevPAR growth.
Not even the 2.2% YOY increase in labour costs and the 0.7% YOY uptick in overheads could stunt profit growth in September. Still, the gap between YTD 2019 profit per available room lags 0.1% behind the same period in 2018.
Profit & Loss Key Performance Indicators - Total UK (in GBP)
Aided by the 2019 Labour Party's Annual Conference, held between September 21st and 25th, hotels in Brighton recorded a robust 17.1% YOY increase in profit per available room, placing the city's YTD 2019 GOPPAR 2.0% above its 2018 counterpart.
Rooms revenue achieved a 13.0% YOY gain on a per-available-room basis as a result of YOY increases in both occupancy (up 2.6 percentage points) and average rate (up 9.7%). The positive trend reached ancillary revenues as well, registering a 17.2% lift compared to the same month last year. As a result, TRevPAR climbed 14.4% YOY.
The city also experienced YOY increases in labour costs (up 7.1%) and overheads (up 14.3%) per available room, and profit conversion was recorded at 39.9% of total revenue.
Profit & Loss Key Performance Indicators - Brighton (in GBP)
Conversely, Liverpool hotels were faced with a bleaker landscape. Torrential rain and flooding in the area during the month of September had devastating effects over the city's revenue and profit generation, slashing GOPPAR by 28.9% on a year-over-year basis.
The combination of a 5.9-percentage-point YOY drop in occupancy and an 8.4% YOY decrease in average rate led to a 14.9% YOY drop in RevPAR, marking its greatest plunge in the past two years. Ancillary revenues were also adversely affected and paced 11.4% below September 2018 results. Not surprisingly, TRevPAR registered a 13.9% decline YOY.
Smaller YOY drops in labour costs (down 0.6%) and overheads (down 0.8%), on a per-available-room basis, were not enough to offset the negative impacts over the top-line metrics, and YTD 2019 GOPPAR placed 7.5% below the same period in 2018.
Profit & Loss Key Performance Indicators - Liverpool (in GBP)
HotStats provides a unique profit-and-loss benchmarking service to hoteliers from across the globe that enables monthly comparison of hotels' performance against competitors. It is distinguished by the fact that it maintains in excess of 500 key performance metrics covering 70 areas of hotel revenue, cost, profit and statistics, providing far deeper insight into the hotel operation than any other tool. The HotStats database totals millions of hotel rooms worldwide. For more information, visit www.hotstats.com.