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UK chain hotels market review.
Wednesday, 8th January 2014
Source : HotStats

Scottish hotels post sustained revenue and profit growth;

In November, hoteliers in Scotland experienced a 6.3% increase in total revenues per available room (TrevPAR) and a 6.5% rise in gross operating profit per available room (GOPPAR), representing 14 consecutive months of year on year increases, according to the latest HotStats survey.

A simultaneous surge in occupancy of 3 percentage points and in average room rate (ARR) of 1.3% helped to increase revenue per available room (RevPAR) by 5.5% to £57.65. Additional revenue growth per available room in beverage (14.7% to £11.52), food (8.1% to £22.68) and meeting room hire (2.6% to £4.30) as well as leisure (4.8% to £4.80) contributed to a TrevPAR uplift of 6.3% to £104.05, compared to £97.92 for the same period last year.

Efficient operational cost control enhanced departmental operating profit per available room (DOPPAR) by 6.8% to £54.62 and this, coupled with a significant drop in overheads per available room by 7.0% and a minor increase 0.3 percentage point in payroll produced a GOPPAR surge of 6.5% to £27.30.

November fireworks for Leeds’ hoteliers!

Leeds hotels in November achieved the highest performance growth recorded in absolute figures over the last four years with double digit increases in TrevPAR and GOPPAR by 11.0% and 22.1% respectively, according to the latest HotStats

Both occupancy and ARR surged by 6.1 percentage points to 83.4% and 6.4% to £71.17 leading to a 14.9% increase in RevPAR to £59.32. Segment mix changed with rises in the volume of Best Available Rate (B.A.R.), residential conferences as well as tours & groups, which cancelled out a slight decline in corporate and leisure sectors, the two biggest segments.

Non-rooms revenues growth per available room derived from food (+7.9%), beverage (9.9%), meeting room hire (18.0%) and leisure (2.6%) led to a TrevPAR rise of 11.0% to £113.04. Astute operational cost control helped to convert revenue gains into a 16.8% increase in DOPPAR to £63.23. Although overheads per available room rose notably by 10.0%, payroll decreased by 1.8 percentage points and GOPPAR consequently increased by a stunning 22.1% to £36.95.

Southampton gets RevPAR increase but profit decline

In November, hotels in the coastal destination showed once again the importance of looking beyond RevPAR. Indeed demand levels increased, as occupancy rose by 3.5 percentage points to 72.1%, albeit at the expense of average room rate (-1.9%).

As a result, RevPAR grew by 3.0% to £42.99. However mixed performances were recorded in other non-rooms departments and TrevPAR went up only by 0.9% to £81.15. But with cost of sales increasing, especially with a 26.2% rise in travel agents commission per room let and with overheads per available room rising by 3.8%, payroll efficiency was not enough to offset a 5.2% decline in GOPPAR.

On a calendar year basis, the picture is still positive with hoteliers in Southampton experiencing increases in TrevPAR and GOPPAR by 3.0% and 2.2% respectively, but GOP conversion deteriorated slightly to 25.5% from 25.7% compared to the same period last year.

For an inside view of a local or regional market place in the hotel sector, bespoke HotStats reports are available. Terms and conditions apply. Visit to view a sample report.

HotStats provides two reporting tools to hoteliers:

  • Our unique profit and loss benchmarking service which enables monthly comparison of hotels’ performance against their competitors. It is distinguished by the fact that it provides in excess of 100 performance metric comparisons covering 70 areas of hotel revenue, cost, profit and statistics providing far deeper insight into the hotel operation than any other tool.
  • Our latest innovation in daily revenue intelligence, MORSE. Amongst its reporting are daily and highly granular market segmentation metrics as well as distribution channel and source of booking analysis. It takes daily market intelligence to a whole new level.
©HotStats Limited 2014 Unless otherwise attributed, all materials in this press release is the copyright of HotStats Limited.

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