Hotels in the provinces continue to overshadow London

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Hotels in the UK provinces once again posted positive year-on-year growth in February, outshining results from establishments in London, which showed a general decline, according to the latest HotStats figures.

The largest increase in performance levels for the provinces was recorded in gross operating profit per available room (GOPPAR), whereas London’s only positive exception was a rise in average room rate (ARR).

The North East was among the best performing regions by recording a 20.7% increase in GOPPAR. A combined surge in occupancy of 2.6 percentage points and 5.6% in ARR resulted in an uplift in revenue per available room (RevPAR) of an impressive 9.3% to £53.28. With non-rooms revenues also climbing, total revenue per available room (TRevPAR) rose by 6.4% to £93.74, compared to the same period last year.

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Manchester hotels also performed well, recording a strong February with TRevPAR and GOPPAR levels rising by 12.9% and 30.3% respectively.

With both occupancy (+4.7 percentage points to 81.6%) and ARR (+9.4% to £82.58) increasing, hotels in the warehouse city experienced a RevPAR growth of 16.0%. An overall positive performance was recorded in ancillary departments and TRevPAR went up by 12.9% to £112.17.

In February in London, Heathrow hotels demonstrated once again that RevPAR alone can be a misleading indicator of hotel health with a rise of 1.5%, as TRevPAR and GOPPAR levels fell by 0.5% and 0.6% respectively.

A surge in demand of 0.9 percentage points with a 0.3% increase in ARR delivered the RevPAR growth. In addition, travel agency commission per occupied room reduced by 4.3% to £4.72. However, a general decrease in non-rooms revenue per available room from food (-6.0%) and beverage (-0.2%) led TRevPAR levels to decline to £82.84 (-0.5%).

 

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