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Revpar of UK hotels increases 3.8% in first quarter

17 May 2011 by
Revpar of UK hotels increases 3.8% in first quarter

Hotels across the UK achieved a 3.8% increase in revenue per available room (revpar) during the first quarter of 2011, according to market data provider STR Global.

The revpar rise to £50.67 was a result of average daily rate (ADR) increasing by 4.1% to £70.62 and despite occupancy falling slightly by 0.3% to 63.6%.

Revpar gains were strongest in Nottingham, Plymouth, Norwich and London. Both Nottingham and Plymouth had strong occupancy growth (11% and 13.6% respectively), but only a modest increase or a fall in ADR (0.4% and -3.9%).

London and Norwich both achieved revpar growth of 7.3%. Despite a drop in occupancy of 1.7%, the capital's ADR rose 9.2% to £123.67 and revpar climbed by 7.3% to £92.22.

The largest declines in revpar were seen in Bradford, Gatwick Airport and Liverpool, destinations which all experienced an increase in the supply of rooms during the first three months of the year. Bradford, which suffered the largest fall in revpar of 11.1% to £20.05, also saw the highest increase in room supply of 21.3%.

An increase in room supply of 7.6% in Liverpool contributed to falls in occupancy of 3.1% and in ADR of 5.2%.

The poor year-on-year performance of Gatwick Airport is partly because of the increase in room numbers by 4.9% and the profitable start to 2010, when passengers were stranded by heavy snow. Revpar at Gatwick fell by 8.2% to £38.83 during the first quarter.

The STR Global report was put together from samples of more than 240,000 guest rooms in the UK from luxury to budget hotels.

Occupancy drive double-digit revpar growth in London >>

London hotels boosted revpar by 12% >>

Luxury hotels in London to expand by more than a quarter >>

By Janet Harmer

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