Hotels in the East of the country achieved a combined uplift in occupancy of 3.4 percentage points and in average room rate (ARR) of 7.3% that resulted in an impressive increase of 12.5% in revenue per available room (RevPAR) to £51.58.
UK provinces outpace London hotels’ profit growth London hotels reported a slight increase in gross operating profit per available room (GOPPAR) in the month of November, but the UK provinces continued to show much more positive year-on-year movements with Eastern hoteliers in the lead recording a 27.7% surge, according to the latest data from HotStats.
Hotels in the east of the country achieved a combined uplift in occupancy of 3.4 percentage points and in average room rate (ARR) of 7.3% that resulted in an impressive increase of 12.5% in revenue per available room (RevPAR) to £51.58. But mixed performances were recorded non-rooms revenues, which softened total revenue per available room (TRevPAR) levels to a growth of 7.7% to £89.52.
This increase in revenue performance was further enhanced by effective payroll management and efficient operating cost control with departmental operating profit per available room (DOPPAR) climbing by 14.4% to £49.65. Although overheads per available room rose by 3.5%, profit conversion went up from 23.5% to 27.9% delivering this impressive GOPPAR growth.
Profits up in Belfast despite fallingRevPAR…
In November, Belfast hotels demonstrated once again that RevPAR alone can be a misleading indicator of hotel health with a decline of 1.1% in this metric, as TRevPAR and GOPPAR levels went up by 1.3% and 0.5% respectively, according to the latest data from HotStats.
A drop in demand of 2.8 percentage points with a 2.3% increase in ARR accounted for the RevPAR decline. However, an increase in non-rooms revenue per available room from C&B room hire (+36.9%), food (+8.4%) and golf (+3.0%) led to a TRevPAR growth of 1.3% to £90.58. While hoteliers also suffered from a 1.9 percentage point increase in payroll, a 3.6% decrease in overheads per available room helped to achieve a slight increase in GOPPAR of 0.5% to £26.70 compared to the same period last year.
…Whereas revenues rise but profits plummet in Derby
Derby hoteliers experienced an increase in revenues with both RevPAR and TRevPAR going up by 7.1% and 11.6 % respectively, according to the latest data from HotStats. However, this increase was not sufficient to deliver a profit growth in November, as GOPPAR declined by 33.2%.
The RevPAR performance was achieved through combined rises in occupancy of 2.8 percentage points to 70.5% and in ARR of 7.1% to £62.51. A general decrease in non-rooms revenue per available room from leisure (-6.6%), food (-5.8%) and beverage (-5.6%) softened TRevPAR to £81.39, representing only a 1.4% increase compared to the same period last year. On the other hand, operating costs grew and negated the revenue increases, leading to a 1.4% decrease in DOPPAR, and a significant 41.0% surge in overheads per available room further impacted profitability levels resulting in a GOPPAR decline of 33.2% to £13.88.
Vicky is the co-founder of TravelDailyNews Media Network where she is the Editor-in Chief. She is also responsible for the daily operation and the financial policy. She holds a Bachelor's degree in Tourism Business Administration from the Technical University of Athens and a Master in Business Administration (MBA) from the University of Wales.
She has many years of both academic and industrial experience within the travel industry. She has written/edited numerous articles in various tourism magazines.
