Market Reports

UK Chain Hotels Market Review - March 2015

Whilst London hotels' profitability showed a virtually flat year-on-year movement in the month of March, the UK provinces continued to post strong performance with particular growth in gross operating profit per available room (GOPPAR). In particular, South East hoteliers recorded an 8.4% surge in this metric, according to the latest data from HotStats.

HotStats Whilst London hotels' profitability showed a virtually flat year-on-year movement in the month of March, the UK provinces continued to post strong performance with particular growth in gross operating profit per available room (GOPPAR). In particular, South East hoteliers recorded an 8.4% surge in this metric, according to the latest data from HotStats.

With occupancy increasing by 2.5 percentage points, hoteliers in the South East region managed to grow average room rate (ARR) by 1.6%, resulting in a revenue per available room (RevPAR) uplift of 5.3% to £57.02. Most non- rooms departments also recorded positive movements with C&B room hire per available room leading (+8.5%), which contributed to a 3.6% growth in total revenue per available room (TRevPAR).

Departmental operating profit per available room (DOPPAR) was enhanced by 6.7% to £56.66, and although overheads per available room jumped by 2.6%, GOPPAR went up by 8.4% to £31.34, compared to the same period last year.

Cost control lifts Chester hotel profits

In March, Chester hotels recorded significant year- on-year growth across all key performance indicators with TRevPAR and GOPPAR increasing by 3.8% and 33.7% respectively, according to the latest HotStats. A combined surge in occupancy of  3.5 percentage points to 68.4% and in ARR of 2.1% to £74.25 generated a RevPAR uplift of 7.5%, compared to the same period last year. Mixed performances were recorded in ancillary departments and in particular, a decrease in meeting room hire per available room (-21.3%) softened the TRevPAR growth to 3.8%. Hoteliers managed to lessen payroll costs by 1.2 percentage points and a noteworthy 10.0% drop in overheads per available room helped to deliver a GOPPAR surge of 33.7% to £34.00, representing a gross profit conversion of 33.7% for the month. 

Stratford upon Avon on the up

Stratford upon Avon hotels also recorded a positive month of March with TRevPAR and GOPPAR rising by 12.0% and 7.9% respectively, according to the latest HotStats.

With both occupancy (+5.1 percentage points to 67.8%) and ARR (+3.7% to £75.31) increasing, hotels in Shakespeare’s town experienced RevPAR growth of 12.1%. Most non-rooms departments contributed to the overall positive performance with leisure revenue per available room being the exception (-3.8%), and TRevPAR went up by 12.0%. Efficient cost control combined with a slight increase in payroll (+0.6 percentage points) led to a 10.3% DOPPAR uplift. Although overheads per available room rose by 11.5%, GOPPAR hiked by 7.9% to £28.64, compared to the same period last year. 

Graph - UK Chain Hotels Market Review - March 2015

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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:

Tony Oliveira
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tony.oliveira@hotstats.com




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