Outside London, in May South East hoteliers achieved a growth of 4.9% in gross operating profit per available room (GOPPAR), according to the latest data from HotStats. The UK provinces in general also saw growth for the 5th consecutive month.
South East surges: London loses
Despite a drop in demand in May with occupancy going down by 0.3 percentage points (77.4%), hotels in the South East managed to increase rooms revenue per available room (RevPAR) by 4.3% thanks to a 4.7% uplift in average room rate (ARR). Total revenue per available room (TRevPAR) surged by 3.5% to £105.61 despite a 2.9% decrease in food and beverage revenue per available room. With operating costs rising, departmental operating profit per available room (DOPPAR) remained virtually flat (+0.2%). Overheads per available room also remained stable, which coupled with payroll declining by 0.6 percentage points led to a GOPPAR increase of 4.9% to £35.22.
Glasgow goes from strength to strength
In May, Glasgow hoteliers confirmed a great period ahead of the Commonwealth Games with TRevPAR and GOPPAR growing by 14.1% and 27.6% respectively, according to the latest data from HotStats.
Occupancy reached 85.2% (+4.7 percentage points) while ARR climbed by 11.9% to £75.41 leading to an impressive RevPAR growth of 18.4% to £64.25. Similar movements were recorded in non-rooms revenues with meeting room hire per available room increasing by 17.0% and as a result, TRevPAR went up by 14.1% to £109.81. Cost control helped to enhance the overall performance with a DOPPAR surge of 16.3% to £64.03. Despite a slight increase in overheads per available room (+0.6%), GOPPAR rose by 27.6% to £40.88 representing a gross profit conversion of 37.2% from 33.3% for the same period last year.
Chester races ahead
Chester hotels recorded positive year-on-year performances across all key indicators in May with TRevPAR and GOPPAR increasing by 7.3% and 24.2% respectively, according to the data from HotStats.
Hoteliers experienced a 12.5% increase in RevPAR driven primarily by ARR (+10.3%). With the exception of the Residential Conference segment rate declining by -5.2%, all other segments’ rates increased ranging from the lowest rate derived from Tours / Groups (+17.9% to £54.44) to the highest rate derived from the Best Available Rate segment (+4.7% to £97.13). Despite the fact that travel agents’ commission as a percentage of rooms revenue increased by 1.0 percentage point to 9.8%, rooms operating profit went up by 2.0 percentage points to 67.6%.
Mixed performances were achieved in non-rooms departments; TRevPAR surged by 7.3% to £111.76 but efficient operating cost control helped to boost DOPPAR by 13.1%. Despite overheads rising, payroll decreased by 1.6 percentage points and GOPPAR shot up by 24.2% to £32.77.
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