Ongoing growth in hotel performances for October
October figures confirm the ongoing recovery of the hotel sector - led by a strong performance in London, according to the latest HotStats UK Chain Hotels Market Review.
Total revenue and profit per available room in the capital's hotels increased 6% and 8.5% respectively, compared with the same month last year.
Although occupancy remained flat at 87.2%, a surge in average room rate (ARR) of 7.2% to £158.57 boosted revenue per available room (revpar) by 7.1%. With overheads remaining stable and payroll decreasing by 1.5 percentage points, total gross operating profit (goppar) increased by 8.5% to £98.57.
The calendar year performance showed a minor 0.5% increase in revpar, but this gain was not enough to reverse the goppar decline of 2.7%.
Bristol was one of the best performing regional markets. Both increases in occupancy (up 3.8 percentage points to 77.7%) and in ARR (up by 2% to £73.58) led to a 7.3% surge in revpar. Astute cost control contributing resulted in an impressive year-on-year goppar increase of 22.7%.
Across the year, Bristol hoteliers have achieved an increase in total revenue per available room and goppar of 6.4% and 10.4% respectively.
Despite positive performance overall in the provinces, West Midlands hoteliers showed that total revenue and profit growth is not equally distributed across the UK, with the region experiencing challenging trading conditions in October.
ARR increased by 1%, but revpar remained unchanged at £50.74 due to a 0.7 percentage point drop in occupancy at 72.4%. Operators' ability to efficiently manage operational costs helped to maintain goppar at £34.96, despite overheads rising by 1.4%.
London hotels back on track thanks to rate increase >>
Regional hotels record revenue growth for 13th consecutive month >>
