UK provinces outpace London hotels’ profit growth London hotels reported a slight increase in gross operating profit per available room (GOPPAR) in the month of November, but the UK provinces continued to show much more positive year-on-year movements with Eastern hoteliers in the lead recording a 27.7% surge, according to the latest data from HotStats.
Hotels in the east of the country achieved a combined uplift in occupancy of 3.4 percentage points and in average room rate (ARR) of 7.3% that resulted in an impressive increase of 12.5% in revenue per available room (RevPAR) to £51.58. But mixed performances were recorded non-rooms revenues, which softened total revenue per available room (TRevPAR) levels to a growth of 7.7% to £89.52.
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) climbing by 14.4% to £49.65. Although overheads per available room rose by 3.5%, profit conversion went up from 23.5% to 27.9% delivering this impressive GOPPAR growth.
Profits up in Belfast despite falling\RevPAR...
In November, Belfast hotels demonstrated once again that RevPAR alone can be a misleading indicator of hotel health with a decline of 1.1% in this metric, as TRevPAR and GOPPAR levels went up by 1.3% and 0.5% respectively, according to the latest data from HotStats.
A drop in demand of 2.8 percentage points with a 2.3% increase in ARR accounted for the RevPAR decline. However, an increase in non-rooms revenue per available room from C&B room hire (+36.9%), food (+8.4%) and golf (+3.0%) led to a TRevPAR growth of 1.3% to £90.58. While hoteliers also suffered from a 1.9 percentage point increase in payroll, a 3.6% decrease in overheads per available room helped to achieve a slight increase in GOPPAR of 0.5% to £26.70 compared to the same period last year. - See more at: http://www.traveldailynews.com/news/article/64030/uk-provinces-outpace-london-hotels-rsquo#.dpuf
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