UK hotels see RevPAR hit July high but GOPPAR turns negative

General Election – Documents Stock

RevPAR at hotels in the UK hit a high in July, although the same period saw GOPPAR turn negative, new data from HotStats has revealed.

Hotels recorded a 1.0% increase in RevPAR to £117.25, with room occupancy at 86.6% and a 1.5% year-over-year increase in average room rate, to £135.52. 

In addition, the month saw a 1.1% increase in total food and beverage revenue on a per-available-room basis, which helped to ensure a 1.2% increase in TRevPAR to £166.25.

However the period also saw increasing costs, most notably an increase in payroll, which saw 3.6% YOY rise on a PAR basis, contributing to GOPPAR falling by 0.7% in the month to £71.68 PAR.

Story continues below

Michael Grove, managing director, EMEA at HotStats, said: “UK hoteliers have now recorded a YOY profit decrease in six of the last seven months, while over the same period have recorded a decline in RevPAR just once.

“It’s incumbent on hoteliers to find areas to reduce expenses in order to enable higher flow through.”

London was not immune from the fall, with GOPPAR down 0.2% YOY in the capital, despite a 0.7% RevPAR  increase to £185.14.

This can largely be attributed to payroll costs, which have seen a dramatic rise in the last year, up 5.5% YOY in July and thus pushing profit levels into negative territory.

There was better news for hoteliers in Liverpool, which boasted one of its strongest moths this year, with profit performance rising by 10.6% YOY to £33.59 per available room.

This was down to a host of events, festivals and tournaments taking part in the city, including the Netball World Cup, which led to room occupancy reaching its highest level in 2019 at 86.5% resulting in a 7.4% YOY RevPAR increase.

Tags : GOPPARHotStatsliverpoolLondon.RevPAR
Patrick Cremona

The author Patrick Cremona

Leave a Response