Hotel stats show provinces up while London loses


London’s hotel profitability fell for the second consecutive month in June, according to new figures from HotStats.

However, the UK provinces continued to show year-on-year positive movement for gross operating profit per available room (GOPPAR).

East Midlands hoteliers in particular experienced a 3.3% growth in this metric, according to the latest data from the company.

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East Midlands hotels recorded a combined surge in occupancy of 1.1 percentage points and growth in average room rate (ARR) of 1.6% resulting in an increase in rooms revenue per available room (RevPAR) of 3.1% to £45.92.

With non-rooms departments also pushing ahead, total revenue per available room (TRevPAR) went up by 1.4% to £88.94, representing the 17th consecutive year-on-year growth for this metric.

Departmental operating profit per available room (DOPPAR) rose by 2.5% and despite payroll and overheads per available room increasing by 0.5 percentage points and by 1.5% respectively, GOPPAR surged by 3.3% to £27.07.

In Liverpool the report says 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.

Coventry tells a different story, however, while RevPAR rose profits plummeted in the city. 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 conference and banqueting 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.

Tags : Boutique HotelsLondon.regionsresults
Kathy Bowry

The author Kathy Bowry

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