London hotels reported a decrease in gross operating profit per available room (GOPPAR) in the month of June, but the UK provinces continued to show much more positive year-on-year movements with South West hoteliers recording a 12.6% surge in GOPPAR, according to the latest data from HotStats.
Hotels in the South West of the country achieved a combined rise in occupancy of 1.7 percentage points to £83.10 and an average room rate (ARR) of 7.7% to £78.14 resulting in a noteworthy increase of 10.0% in revenue per available room (RevPAR) to £64.97. But mixed performances were recorded in non-rooms revenues, which softened total revenue per available room (TRevPAR) levels to a growth of 6.9% to £106.39.
Payroll and operating cost control helped to enhance departmental operating profit per available room (DOPPAR) by 8.8% to £60.07 and, although overheads per available room jumped by 3.9%, GOPPAR went up by 12.6% to £35.32.
Aberdeen aches…
During the month of June hotels in the oil capital of Europe posted negative year-on-year comparisons across all key performance indicators. Occupancy levels decreased by 9.2 percentage points and ARR by 18.5%, leading to a significant RevPAR drop of 28.2% to £62.33.
Moreover, an overall contraction in non-rooms revenue per available room from meeting room hire (-50.3%), food (-21.8%) and beverage (-18.9%) led TRevPAR levels to plunge to £90.74 (-27.2%). Hoteliers’ payroll costs increased by 5.4 percentage points to 27.6% which further impacted the GOPPAR decline of 42.4% to £34.90, representing a gross operating profit conversion of 38.5% for the month.
…whilst Glasgow grins
Glasgow hotels experienced a positive month of June with increases across the board. There was a TRevPAR uplift of 13.2% to £121.10 alongside a GOPPAR increase of 28.3% to £49.42. The RevPAR increase of 23.8% was driven by combined surges in occupancy of 5.2 percentage points to 91.9% and ARR by 16.7% to £85.99.
The two highest rate increases were attributed to the residential conference (+22.1% to £99.92) and tours/groups (+20.7% to £63.08) segments. Revenue per available room derived from beverage and food declined, but leisure and meeting room hire revenues rose with both fuelling to the TRevPAR growth of 13.2%. Lastly, efficient cost control and a decrease in payroll (3.7 percentage points) led to a 19.2% DOPPAR increase all helping to deliver a GOPPAR hike of 28.3%.
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