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UK chain hotels market review.
Saturday, 25th October 2014
Source : HotStats

Whilst London’s hotel profitability showed positive year-on-year movements in the month of September, the UK provinces put the capital’s performance in shade with gross operating profit per available room (GOPPAR) showing a double digit growth.

In particular, Scottish hoteliers recorded a 27.3% surge in this metric, according to the latest data from HotStats

With occupancy remaining virtually flat, hotels in Scotland increased average room rate (ARR) by 21.7%, resulting in rooms revenue per available room (RevPAR) climbing by 21.6% to £98.56.

Besides food and beverage, all non-rooms departments recorded positive performances leading to a 13.6% growth in total revenue per available room (TRevPAR).

Astute payroll and operating cost control helped to enhance departmental operating profit per available room (DOPPAR) by 20.0% to £97.97 and although overheads per available room jumped by 7.3%, GOPPAR went up by 27.3% to £67.74.

Bristol hotels grow top and bottom-line

In September, Bristol hotels recorded significant year-on-year growth across all key performance indicators with TRevPAR and GOPPAR increasing by 19.8% and 43.4% respectively, according to the latest HotStats.

A combined surge in occupancy of 5.6 percentage points to 84.8% and in ARR of 17.6% generated a RevPAR uplift of 25.9% compared to the same period last year. Positive performances were recorded in non-rooms departments, particularly in leisure revenue per available room (+20.2%) and meeting room hire per available room (+18.9%) leading to a TRevPAR surge of 19.8%.

DOPPAR also rose by 26.9% thanks to efficient operating cost control and payroll going down by -2.4 percentage points. Despite overheads per available room increasing by 6.6%, GOPPAR still shot up by a stunning 43.4% to £42.05.

Profits also up in Milton Keynes

Milton Keynes hoteliers also recorded a positive month of September with TRevPAR and GOPPAR rising by 8.1% and 43.1% respectively, according to the latest HotStats.

With a rise in both occupancy (+2.8 percentage points to 82.1%) and ARR (+9.5%), Milton Keynes hotels experienced a RevPAR growth of 13.3%. Mixed performances were recorded in ancillary departments and TRevPAR went up by only 8.1%.

Efficient cost control and reduced payroll (-0.7 percentage points) led to a 9.7% DOPPAR increase, and as a result GOPPAR hiked by 43.1% to £41.54, representing a gross operating conversion of 45.6% for the month.   

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