HotStats UK Chain Hotels Market Review – June 2014
UK Provinces and East Midlands grow profits, but London loses again
Liverpool looms large
Liverpool hoteliers have experienced improving trading conditions with increases in GOPPAR of 5.1% for the rolling 12 months to June, 9.0% for the first semester and 13.2% for the month of June, according to the latest data from HotStats.
In June, this profit performance was supported by a 10.5% uplift in RevPAR thanks to a coupled rise in occupancy of 4.3 percentage points and in ARR of 4.4%. Positive movements were recorded in ancillary departments and TRevPAR levels increased by 8.3% to £93.68. Efficient operating cost control helped to deliver an 8.0% surge in DOPPAR, while payroll also declined by 0.9 percentage points. Despite a slight increase in overheads per available room (+0.7%), hoteliers managed to increase their gross profit conversion from 34.7% to 36.2% this month.
RevPAR rises, profits plummet in Coventry
Coventry hotels demonstrated once again that RevPAR alone can be a misleading indicator of hotel health with a rise of 4.7% this June, as TRevPAR and GOPPAR levels went down by 1.2% and 18.5% respectively, according to the latest data from HotStats.
A rise in demand of 2.5 percentage points with a 0.9% increase in ARR delivered the RevPAR growth. However, a general decrease in non-rooms revenue per available room from food (-4.1%), beverage (-3.4%) and C&B room hire (-15.5%) led to a TRevPAR drop of 1.2% to £90.20. Simultaneously, operating cost control deteriorated leading to a DOPPAR decrease of 2.1%, while hoteliers also suffered from a 3.2 increase in payroll. A 15.6% increase in overheads per available room further impacted the GOPPAR decline of 18.5% to £19.85, representing a gross profit conversion of 22.0%.
However, taking the first six months of the year, the picture is more upbeat for hotels in Coventry with TRevPAR and GOPPAR rising by 4.6% and 10.3% respectively.
Phone: +44 (0) 20 7892 2241