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.
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