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Scottish and Leeds hotels enjoy strong November 2013

07 January 2014 by
Scottish and Leeds hotels enjoy strong November 2013

There were further signs that the hotel market outside London could be improving, following strong performances by chain hotels in both Scotland and Leeds in November 2013.

Hoteliers in Scotland saw a 6.3% increase in total revenues per available room (trevpar) and a 6.5% rise in gross operating profit per available room (goppar) during the month, representing 14 consecutive months of year on year increases, according to the latest HotStats survey.

Occupancy in the country rose three percentage points and an average room rate (ARR) of 1.3% helped to increase revenue per available room (revpar) by 5.5% to £57.65.

Meanwhile, Leeds hotels achieved the highest performance growth recorded in absolute figures over the last four years with double digit increases in trevpar and goppar by 11% and 22.1% respectively, according to HotStats.

Both occupancy and ARR surged by 6.1 percentage points to 83.4% and 6.4% to £71.17 leading to a 14.9% increase in revpar to £59.32.

And Southampton also saw an increase in revpar, although profits fell.

Demand levels in the city increased, as occupancy rose by 3.5 percentage points to 72.1%, albeit at the expense of average room rate (-1.9%). As a result, revpar grew by 3.0% to £42.99. However mixed performances were recorded in other non-rooms departments and trevpar went up only by 0.9% to £81.15. But with cost of sales increasing, especially with a 26.2% rise in travel agents commission per room let and with overheads per available room rising by 3.8%, payroll efficiency was not enough to offset a 5.2% decline in goppar.

HotStats said that the picture was still positive on a calendar year basis, with hoteliers in Southampton experiencing increases in trevpar and goppar by 3.0% and 2.2% respectively, but gross operating profit (GOP) conversion deteriorated slightly to 25.5% from 25.7% compared to the same period last year.

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