Profit growth for chains – but not in London

According to HotStats, once again the UK provinces lead the way to profit growth with positive year-on-year movement during the month of October in gross operating profit per available room (GOPPAR).

Yorkshire and Humberside hoteliers experienced a 10.0% increase in this metric while London hoteliers registered a decline.

Yorkshire and Humberside hotels recorded increases in occupancy of 2.9 percentage points to 79.7% and in average room rate (ARR) of 5.6% to £67.77, leading to a rooms revenue per available room (RevPAR) growth of 9.5% to £54.04. But negative performances were recorded in ancillary departments and total revenue per available room (TRevPAR) levels were softened to an increase of 4.8% to £96.03.

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In the meantime, hoteliers managed to reduce payroll to 29.6% from 31.0%, while operating expenses remained flat and as a result departmental profit per available room (DOPPAR) went up by 7.2%. Despite overheads per available room increasing by 5.3%, GOPPAR shot up by 10.0% to £29.26.

In October, Birmingham hotels experienced positive year-on-year comparisons across all key performance indicators with TRevPAR and GOPPAR increasing by 10.2% and 14.1% respectively, according to the latest HotStats.

Significant growth was recorded in both occupancy (+3.4 percentage points) and ARR (+5.4%) leading to a 10.1% jump in RevPAR, further supported by similar improvements in non-rooms departments and most notably with increase in beverage (+15.3%) and food (+11.8%), TRevPAR grew by 10.2% to £121.50.

Despite slight increases in operating costs and overheads per available room (+1.4%), efficient payroll management (to 24.8% from 25.8%) helped to convert revenue gains into a 9.7% increase in DOPPAR, and GOPPAR went up by 14.1% to £51.12.

Hotels in the Kent city of Maidstone experienced a positive month of October with increases in both TRevPAR and GOPPAR of 4.9% and 8.1% respectively, according to the latest data from HotStats.

RevPAR increased by 6.9% driven by simultaneous surges in occupancy of 3.8 percentage points to 76.1% and ARR by 1.6% to £64.18.

The two highest rates increases were attributed to the residential conference (+6.7% to £66.91) and leisure (+3.6% to £64.26) segments.

Revenue per available room derived from beverage declined, but food, leisure and meeting room hire revenues rose and TRevPAR grew by 4.9%.

Despite payroll and overheads per available room going up, excellent operating cost control helped to deliver a GOPPAR surge of 8.1%.



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