With every UK region enjoying an unusually positive start to the year, Yorkshire and Humberside hoteliers recorded year-on-year increases in total revenue per available room (TRevPAR) and gross operating profit per available room (GOPPAR) of 6.9% and a stunning 25.0% respectively in January, according to the latest HotStats.
Hotels in the region increased average room rate (ARR) by 7.1% to £63.39 mainly underpinned by rate rises in residential conference and best available rate segments. Alongside the rate increase, occupancy improved by 1.2 percentage points to 53.8% and as a result RevPAR posted impressive growth of 9.6% to £34.09. Moreover, TRevPAR levels also benefited from increases in non-rooms-revenues to achieve a 6.9% growth to £63.41.
Well controlled operating costs and payroll combined with overheads as a percentage of total revenue reducing to 35.7% from 36.5%, boosted GOPPAR by 25% to £6.74, in stark contrast to the 26.0% decline recorded in this metric in the same month last year.
Manchester grows revenues but not profit
In January, hotels in Manchester registered growth in revenue with RevPAR and TRevPAR increasing by 1.9% and 2.6% respectively. But these positive movements were not enough to offset rising costs, with GOPPAR declining by 1.2%, according to the latest HotStats.
Although occupancy dropped by 1.0 percentage point to 66.3%, a 3.5% rise in ARR to £72.17 contributed to a 1.9% uplift in RevPAR to £47.87. Increasing rooms revenue was further supported by growth in food (+4.8%) and beverage (+6.7%) revenues per available room leading to a 2.6% TRevPAR rise to £83.69. However with an escalation in operating costs, most notably a 15.0% surge in travel agent commissions to £6.51 per room let, revenue gains were cancelled out. With increases in payroll (+0.9 percentage points) and overheads per available room (+1.1%), profitability conversion deteriorated to 19.1% from 19.9%, equivalent to a 1.2% decline in GOPPAR to £16.00.
Dramatic Performance by Stratford-Upon-Avon hotels
Hoteliers in the city of Shakespeare experienced a very positive first month of the year with TRevPAR and GOPPAR surging by 12.3% and 30.0% respectively, according to the latest HotStats.
Positive year-on-year increases were recorded across all key performance indicators in the month, with ARR being the only exception declining by 0.7% to £66.34. Nevertheless, hoteliers saw occupancy rising by 3.5 percentage points to 45.4% and consequently RevPAR grew by 7.6% to £30.13. With ancillary revenues showing substantial improvement, TRevPAR rose by 12.3% to £60.88.
Efficient cost control helped to enhance departmental operating profit per available room (DOPPAR) by 10.6% to £28.38 and GOPPAR by a staggering 30.0% to £7.57 despite a 4.8% increase in overheads per available room.
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