‘Discordant' performance at UK hotels continues

30 December 2019 by
‘Discordant' performance at UK hotels continues

Revenue growth hasn't been an issue for UK hoteliers this year, but driving profit has been a frustration, according to hotel market analysis service HotStats.

Revenue per available room (revpar) grew slightly 0.3% year-on-year in November, while gross operating profit per available room (goppar) was down 1.8% year-on-year, illustrating the sometimes incongruous relationship between revenue and profit.

Yearly numbers note the trend: revpar is up 1.9% for the year to date, while goppar is down 0.9%. While 2019 has seen eight months of year-on-year total revenue per available room (trevpar) increases, it has also seen eight months of year-on-year goppar declines.

The divergent revenue and profit picture across the UK held true for the month in Birmingham (pictured), where both revpar and trevpar were up year-on-year 3.6% and 1.1%, respectively, against a year-on-year decrease in goppar of 1.5%.

London hotels checked in with similar results. Revpar in the month was up 0.7% year-on-year on a 2.6% increase in average room rate. Occupancy was down 1.5 percentage points to 82.3%. Total revenue was down 0.4% year-on-year, as total food and beverage revpar decreased 2.4%.

For year-to-date, hotels in London have recorded a 2.6% increase in trevpar and a 1% increase in goppar, signs of a still strong, if not more restrained in growth, market. Profit margin for the month of November was recorded at 44.7%, one percentage point less than the same time last year.

TagsHotels
The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.

close

Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking