With London’s profitability bouncing back with positive year-on-year comparison in August, the UK Provinces go from strength to strength with gross operating profit per available room (GOPPAR) showing double digit growth, and West Midlands hoteliers recording an 11.1% surge in this metric, according to the latest HotStats report.
Simultaneous increases of 8.2% in average room rate (ARR) and of 0.7 percentage points in occupancy for West Midlands hoteliers boosted rooms revenue per available room (RevPAR) by 9.4%. Non-rooms revenues also showed positive movements and total revenue per available room (TRevPAR) grew by 8.2% compared to the same period last year.
Hoteliers also managed to reduce payroll by 0.4 percentage points to 35.2% as well as operating costs to deliver a departmental operating profit per available room (DOPPAR) growth of 8.6%. Despite overheads per available room climbing by 6.5%, GOPPAR shot up by 11.1% representing a gross operating conversion of 23.5% for the month.
Sunshine for Brighton
Hotels in the seaside destination recorded a strong month of August with TRevPAR and GOPPAR surging by 8.6% and 15.0% respectively, according to the latest HotStats.
A combined growth in occupancy of 4.3 percentage points to 87.3% and in ARR of 6.8% generated a RevPAR uplift of 12.3% for Brighton hoteliers. Despite revenue per available room derived from C&B room hire declining by 15.4%, food and beverage showed positive movements by 1.3% and 1.7% respectively and TRevPAR grew by 8.6%.
Astute operating cost control helped to enhance DOPPAR levels by 10.8%. Despite overheads per available room increasing by 3.9%, payroll dropped by 2.1 percentage points and as a result GOPPAR shot up by 15.0% representing a gross operating conversion of 42.2% for the month.
Blue sky for Southampton
Southampton hotels also recorded a positive month of August with TRevPAR and GOPPAR rising by 2.0% and 4.9% respectively, according to the latest HotStats.
With both occupancy (+2.9 percentage points to 89.9%) and ARR (+2.9%) increasing, Southampton hotels experienced a RevPAR growth of 6.3%. Mixed performances were recorded in ancillary departments and TRevPAR wentup by only 2.0%. Efficient cost control further fuelled this revenue gain with DOPPAR increasing by 1.6%, and with payroll and overheads per available room declining by 0.4 percentage points and 2.2% respectively. As a result, GOPPAR went up by 4.9% representing a gross profit conversion of 30.4% for August.
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