An array of major events across leisure and business segments fuelled a 52.2 per cent year-on-year increase in profit per room at Edinburgh hotels this month, according to the latest data from HotStats.
In addition to the 1,200-strong delegation at the Microbiology Society Annual Conference hosted by the EICC, the Scottish capital welcomed attendees to the Edinburgh International Science Festival and Melrose Sevens Rugby, which helped drive a 6.6 percentage point increase in occupancy, to 89.2 per cent.
Europe’s largest annual gathering of microbiologists as well as the more leisure-focussed events enabled hotels in Edinburgh to record significant increases in achieved average room rate in the Residential Conference (+46.3 per cent), Corporate (+20.1 per cent), Individual Leisure (+21.4 per cent) and Best Available Rate (+19.4 per cent) segments.
The strong growth in volume this month, in addition to a 21.6 per cent increase in achieved average room rate, to £112.70, contributed to the 31.3 per cent increase in RevPAR (Revenue per Available Room). At £98.64 in the 12 months to April 2017, RevPAR at hotels in Edinburgh is currently second only to London.
In addition to the 21.5 per cent increase in TrevPAR (Total Revenue per Available Room), cost savings contributed to the £18.03 profit per room increase, supporting a staggering 30.4 per cent year-on-year profit increase for year-to-date 2017, to £30.92.
Late Easter Hits Birmingham Hotels’ Profit
The late Easter caused a blip in an otherwise positive year of performance so far for hotels in Birmingham, with year-on-year profit levels falling by 24.0 per cent this month, to £31.73 per available room.
Birmingham hotels performed well in Q1 2017, recording a 5.7 per cent increase in profit per room, to £35.81, which was on the back of a 4.1 per cent increase in RevPAR.
However, the extended holiday period around Easter resulted in a reduction in demand from key commercial sources for hotels in the West Midlands city, with residential conference and corporate demand accounting for just 34.8 per cent of total demand this month, compared to 43.2 per cent in the 12 months to April 2017.
Whilst volume in the commercial segment dropped, hotels in Birmingham managed to maintain rate levels in the corporate and residential conference sectors, unlike in the leisure segment, which saw a crash in the rate achieved in both the individual (-10.4 per cent) and group (-13.7 per cent) leisure sectors.
In addition to a 14.3 per cent decline in RevPAR this month, hotels in Birmingham suffered a year-on-year drop in Non-Rooms Revenues, which contributed to the 14.6 per cent decline in TrevPAR, to £85.68. Despite the drop in revenue, cost cutting measures meant that hotels in Birmingham were able to maintain robust profit levels, equivalent to a profit conversion of 37 per cent of total revenue.
South West Hotels Profit from Cost Savings
Whilst hotels in the South West recorded a year-on-year TrevPAR increase of just 0.9 per cent this month, a reduction in costs fuelled a 5.8 per increase in profit per room.
Hotels in the South West successfully recorded a 4.9 per cent increase in RevPAR in April, which was primarily as a result of rate growth in the leisure segment. However, declines in Non-Rooms Revenue, including Food and Beverage (-8.6 per cent) and Conference and Banqueting (-19.2 per cent) on a per available room basis, resulted in TrevPAR growth being severely diluted.
Despite this decline, cost savings, which included a 1.6 percentage point reduction in payroll to 30.7 per cent of Total Revenue, fuelled the increase in profit per room, to £30.35 and meant the positive story for the region’s hoteliers in 2017 continued.
Click here ( Adobe Acrobat PDF file) to view full the report.
For an inside view of a local or regional market place in the hotel sector, bespoke HotStats reports are available. Terms and conditions apply. Visit www.hotstats.com to view a sample report.
HotStats provides two reporting tools to hoteliers:
Our unique profit and loss benchmarking service which enables monthly comparison of hotels’ performance against their competitors. It is distinguished by the fact that it provides in excess of 100 performance metric comparisons covering 70 areas of hotel revenue, cost, profit and statistics providing far deeper insight into the hotel operation than any other tool.
Our latest innovation in daily revenue intelligence, MORSE. Amongst its reporting are daily and highly granular market segmentation metrics as well as distribution channel and source of booking analysis. It takes daily market intelligence to a whole new level.
For more information contact:
+44 (0) 20 7892 2241
Logos, product and company names mentioned are the property of their respective owners.