Following a torrid start to the year, hotels in the Provinces have achieved their first year-on-year increase in profit per room this month, according to the latest HotStats survey of approximately 560 full-service hotels across the UK.

Hotels in the Provinces successfully achieved a 1.4% increase in profit per room to £21.63 from £21.33 during the same period in 2011. April was the first month in which the Provincial hotel market has achieved a year-on-year increase in profit since August 2011; and the growth this month represents the first profit increase during April since 2008.

The increase in profitability was primarily due to a 4.8% increase in Revenue per Available Room (RevPAR) as hotels in the Provinces were able to achieve an increase in both room occupancy (+1.9 percentage points) and achieved average room rate (+1.9%).

This represented the greatest margin of increase in RevPAR since June 2011, which not only illustrates the recent challenging trading period in the regions, but also a recovery from the declines suffered at Provincial hotels during the consecutive bank holidays in April 2011.

Despite the RevPAR increase in April being driven by positive movement in the achieved rate in the conference (+5.5%), leisure (+2.1%), group (+3.7%) and Best Available Rate (+2.8%) segments, locally-negotiated corporate rates remain resistant to growth with a 2.2% year-on-year drop in this sector in April to £66.49.

Provincial hotels achieve profit growth for the first time in 2012 "Whilst encouraging, the growth in headline performance metrics this month was somewhat expected due to the disruption caused by the extraordinary string of bank holidays this time last year.

It remains to be seen whether the long bank holiday in June for the Queen's Diamond Jubilee will have a similar effect on the performance of hotels in the Provinces," said Jonathan Langston, managing director at TRI Hospitality Consulting.

Despite the 3.0% increase in Total Revenue per Available Room (TrevPAR) and a decrease in payroll levels  as a proportion of total revenue, profit growth in the Provinces was recorded at only 1.4% as profitability was once again impacted by rising costs in rooms expenses (+7.6%) and utilities (+12.9%) on a per room sold basis.

London hotels achieve huge profit growth once again despite April showers

Hotels in London were once again toasting huge increases in profit per room this month as growth was achieved in all revenue departments, according to the latest HotStats survey of approximately 560 full-service hotels across the UK.

The 7.0% growth in TrevPAR in London was spearheaded by a 7.8% increase in RevPAR as hotels in the capital increased average room rate by 5.3% to £128.52 from £122.10 during the same period in 2011. And at 82.3%, room occupancy in April was the highest it has been for the month since 2008.

The growth in volume in London was primarily as a result of an increase in the proportion of the market mix attributed to the leisure and group tour sectors, which cumulatively comprised approximately 37% of total demand this month, suggesting an increase in the volume of leisure tourists to the city.

This is further supported by the increase in the achieved sector rates in both the leisure (+7.0%) and groups (+9.4%) sectors. The latter is potentially due to an increase in Olympic-related tour groups.

In line with the growth in rooms revenue hotels in London also achieved year-on-year increases in food and beverage revenue (+4.8%), meeting room hire revenue (+0.4%) and leisure re venue (+5.3%) per available room.

Whilst April was a washout for many industries due to the cold and wet weather, the 10.5% increase in profit per room achieved in London was the second year successive year of double-digit growth in this metric following the 12.5% increase in April 2011. London hotels are now 23% ahead of pre-recession (April 2008) Gross Operating Profit per Available Room (GOPPAR).

That said, an uplift in year-on-year performance this month was not unexpected as room occupancy levels fell to as low as 46% in London over the Easter Bank Holiday and the Royal Wedding period this time last year.

"It may have been raining and pouring all month, but it looks like most of the snoring took place at hotel beds in London. Extremely high room occupancy levels, premium average room rates and growth in every revenue department meant that London hoteliers are smashing all performance records," added Langston.

The only blemish on a near perfect performance was the ongoing decline in net average room rate as rooms direct  expenses at hotels in London increased by 6.9% on a per room sold basis, which was due in large part to an 18.1% increase in the cost associated with travel agents commissions.