Once again the UK Provinces led the way to profit growth with positive year-on-year movements during the month of May in gross operating profit per available room (GOPPAR). West Midlands hoteliers experienced a 4.7% increase in this metric while London hoteliers registered a decline, according to the latest data from HotStats.
West Midlands hotels recorded surges in occupancy of 1.0 percentage points to 69.5% and in average room rate (ARR) of 2.5% to £72.03, leading to a rooms revenue per available room (RevPAR) growth of 4.0% to £50.09. A closer look into the rooms department shows a 19.2% increase to £5.03 in travel agency commission per available room compared to the same period last year. This means that of the £1.95 gain in RevPAR, £0.81 or 41.5% of the increase was paid away to third party intermediaries.
But mixed performances were recorded in ancillary departments and total revenue per available room (TRevPAR) levels were softened to a rise of 2.8% to £102.05. At the same time, hoteliers managed to reduce payroll to 31.8% from 32.5%, and as a result departmental profit per available room (DOPPAR) went up by 3.0%. Despite overheads per available room increasing by 1.0%, GOPPAR hiked by 4.7% to £31.07.
RevPAR up but profits down in Brighton hotels...
In May, notwithstanding a 6.5% increase in RevPAR Brighton hotels suffered a decline in GOPPAR levels of 6.4%, according to the latest data from HotStats.
A surge in demand of 3.7 percentage points with a 1.5% increase in ARR delivered the RevPAR growth compared to the same period last year. However, a general decrease in non-rooms revenue per available room from meeting room hire (-26.2%), food (-5.8%) and beverage (-2.3%) led TRevPAR levels to rise by only 0.9% to £123.11. Hoteliers’ payroll costs increased by 0.9 percentage points, and a 12.8% surge in overheads per available room further impacted the GOPPAR decline of 6.4% to £46.05, representing a gross operating profit conversion of 37.4% for the month.
...Whereas profits stagnate in Nottingham
Nottingham hoteliers experienced an uplift in revenues with both RevPAR and TRevPAR going up by 2.8% and 2.6% respectively, according to the latest data from HotStats. However, this increase did not translate into the bottom-line performance during the month of May, as GOPPAR remained stable at £23.00.
Hotels in the city recorded a growth in ARR of 4.4% at the expense of occupancy going down by 1.0 percentage points, resulting in RevPAR jumping to £43.25. Mixed performances in ancillary departments contributed to a TRevPAR rise of 2.6% to £77.89 compared to the same period last year. On the other hand, payroll costs grew by 1.0 percentage point and negated the revenue increases, and a 2.2% surge in overheads per available room further impacted profitability levels resulting in GOPPAR stagnating for the month.
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