Heathrow soars
Hotels in Heathrow experienced year-on-year increases in April for total revenue per available room (TRevPAR) and gross operating profit per available room (GOPPAR) by 3.7% and 5.4% respectively, in a further boost to calendar-year-to-date results, according to the latest data from HotStats.
In April, revenue per available room (RevPAR) improved by 3.6% to £56.13 thanks to an occupancy surge of 5.7 percentage points to 80.9% and despite an ARR decrease of 3.8% to £69.37. TRevPAR levels were further boosted by non-rooms revenues (+3.7% to £82.37); efficient operating cost control delivered a 2.9% increase in departmental operating profit per available room (DOPPAR). With overheads per available room and payroll remaining virtually flat, GOPPAR performance was enhanced by 5.4% to £26.36 compared to the same period last year, representing a gross profit conversion of 32.0%.
North East profits fall
In April, North East hoteliers recorded an increase of 3.9% in RevPAR, according to the latest data from HotStats. However, this increase was not sufficient to deliver profit growth as GOPPAR declined by 7.3%.
RevPAR performance (+3.9% to £48.11) was achieved through rises in occupancy of 1.1 percentage points to 73.8% and in average room rate (ARR) of 2.4% to £65.19. Revenues per available room grew from meeting room hire (+14.4%) and leisure (+1.1%) while dropping from food (-1.7%) and beverage (-7.9%), and as a result TRevPAR increased by 0.9% to £87.34. Operating costs grew and negated the revenue increases which led to a 4.2% decrease in DOPPAR, and a 0.7 percentage point increase in payroll further impacted profitability, with GOPPAR dropping by 7.3% to £17.81.
Aberdeen adds to ARR
Aberdeen hotels experienced a 10.6% increase in ARR in April, and both RevPAR and GOPPAR went up by 5.1% and 3.3% respectively, according to the latest data from HotStats.
This double digit uplift in ARR was at the expense of occupancy, which declined by 3.8 percentage points and led to a RevPAR increase of 5.1% to £78.50. Closer examination of ARR revealed that the corporate rate shot up by 16.1% and this segment accounted for 38.3% of the total number of rooms sold. Rates also surged from Residential Conference (+23.9%), Best Available Rate (+6.8%) and Leisure (5.1%) segments. This month’s increase in ARR represented the 19th consecutive positive year-on-year movement for this metric.
Mixed performances were registered in non-rooms revenues; TRevPAR rose by 3.6% which contributed to a 3.1% uplift in DOPPAR. Despite overheads and payroll slightly rising, GOPPAR increased by 3.3% to £47.76.
Metrics
Occupancy (%) is that proportion of the bedrooms available during the period which are occupied during the period.
Average Room Rate (ARR) is the total bedroom revenue for the period divided by the total bedrooms occupied during the period.
Room RevPar (RevPAR) is the total bedroom revenue for the period divided by the total available rooms during the period.
Total RevPar (TRevPAR) is the combined total of all revenues divided by the total available rooms during the period.
Payroll % is the payroll for all hotels in the sample as a percentage of total revenue.
GOPPAR is the Total Gross Operating Profit for the period divided by the total available rooms during the period.
The hotels profiled in this report are drawn from the HotStats database and reflect the portfolios and distribution of the hotel chains that are surveyed and which operate in the full-service sector.
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