HotStats UK Chain Hotels Market Review February 2015

UK Provinces continue to overshadow

HotStats UK Chain Hotels Market Review February 2015

Hotels in the UK Provinces continued to post positive year-on-year movements across all key performance indicators in February, with the largest increase recorded in gross operating profit per available room (GOPPAR). Once again, this growth outshined London's results which showed a general decline with average room rate (ARR) being the only exception, according to the latest data from HotStats.

The North East was among the best performing regions and contributed to the positive bottom-line performance of the Provinces by registering a 20.7% increase in GOPPAR. A combined surge in occupancy of 2.6 percentage points and 5.6% in ARR resulted in an uplift in revenue per available room (RevPAR) of an impressive 9.3% to 53.28. With non-rooms revenues also climbing, total revenue per available room (TRevPAR) rose by 6.4% to 93.74, compared to the same period last year.

This increase in revenue performance was further enhanced by effective payroll management and efficient operating cost control, with departmental operating profit per available room (DOPPAR) surging by 9.6% to 49.13. Although overheads per available room rose by 2.7%, profit conversion went up to 22.0% from 19.4% delivering this impressive GOPPAR growth.

RevPAR rises, profits drop in Heathrow hotels

In February, Heathrow hotels demonstrated once again that RevPAR alone can be a misleading indicator of hotel health with a rise of 1.5%, as TRevPAR and GOPPAR levels fell by 0.5% and 0.6% respectively, according to the latest data from HotStats.

A surge in demand of 0.9 percentage points with a 0.3% increase in ARR delivered the RevPAR growth. In addition, travel agency commission per occupied room reduced by 4.3% to 4.72. However, a general decrease in non-rooms revenue per available room from food (-6.0%) and beverage (-0.2%) led TRevPAR levels to decline to 82.84 (-0.5%). While hoteliers managed to marginally lessen payroll costs, a 1.0% increase in overheads per available room further impacted the GOPPAR decline of 0.6% to 24.55, representing a gross profit conversion of 29.6% for the month.

Manchester performs

Manchester hotels recorded a strong February with TRevPAR and GOPPAR levels rising by 12.9% and 30.3% respectively, according to the latest data from HotStats.

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HotStats UK Chain Hotels Market Review February 2015