UK Provinces and East Midlands grow profits, but London loses again. Thursday, 24th July 2014 Source : HotStats
Whilst London's hotel profitability fell for the second consecutive month in June, the UK Provinces continued to show year-on-year positive movement for gross operating profit per available room (GOPPAR) and in particular, East Midlandsí hoteliers experienced a 3.3% growth in this metric.
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.
Liverpool looms large
Liverpool 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.
RevPAR rises, profits plummet in Coventry † 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 C&B 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.
~ Important Notice ~ Articles appearing on 4Hoteliers contain copyright material. They are meant for your personal use and may not be reproduced or redistributed. While 4Hoteliers makes every effort to ensure accuracy, we can not be held responsible for the content nor the views expressed, which may not necessarily be those of either the original author or 4Hoteliers or its agents.