Market Report U.K.

Strong April 2014 Performance for UK Chain Hotels at Heathrow Airport

UK Chain Hotels Market Review - April 2014

HotStats Hotels in Heathrow experienced year-on-year increases in April for total revenue per available room (TRevPAR) and gross operating profit per available room (GOPPAR) by 3.7% and 5.4% respectively, in a further boost to calendar-year-to-date results, according to the latest data from HotStats.

In April, revenue per available room (RevPAR) improved by 3.6% to £56.13 thanks to an occupancy surge of 5.7 percentage points to 80.9% and despite an ARR decrease of 3.8% to £69.37. TRevPAR levels were further boosted by non-rooms revenues (+3.7% to £82.37); efficient operating cost control delivered a 2.9% increase in departmental operating profit per available room (DOPPAR). With overheads per available room and payroll remaining virtually flat, GOPPAR performance was enhanced by 5.4% to £26.36 compared to the same period last year, representing a gross profit conversion of 32.0%.

North East profits fall 

In April, North East hoteliers recorded an increase of 3.9% in RevPAR, according to the latest data from HotStats. However, this increase was not sufficient to deliver profit growth as GOPPAR declined by 7.3%. 

RevPAR performance (+3.9% to £48.11) was achieved through rises in occupancy of 1.1 percentage points to 73.8% and in average room rate (ARR) of 2.4% to £65.19. Revenues per available room grew from meeting room hire (+14.4%) and leisure (+1.1%) while dropping from food (-1.7%) and beverage (-7.9%), and as a result TRevPAR increased by 0.9% to £87.34. Operating costs grew and negated the revenue increases which led to a 4.2% decrease in DOPPAR, and a 0.7 percentage point increase in payroll further impacted profitability, with GOPPAR dropping by 7.3% to £17.81.

Aberdeen adds to ARR 

Aberdeen hotels experienced a 10.6% increase in ARR in April, and both RevPAR and GOPPAR went up by 5.1% and 3.3% respectively, according to the latest data from HotStats. 

This double digit uplift in ARR was at the expense of occupancy, which declined by 3.8 percentage points and led to a RevPAR increase of 5.1% to £78.50. Closer examination of ARR revealed that the corporate rate shot up by 16.1% and this segment accounted for 38.3% of the total number of rooms sold. Rates also surged from Residential Conference (+23.9%), Best Available Rate (+6.8%) and Leisure (5.1%) segments. This month’s increase in ARR represented the 19th consecutive positive year-onyear movement for this metric.

Mixed performances were registered in non-rooms revenues; TRevPAR rose by 3.6% which contributed to a 3.1% uplift in DOPPAR. Despite overheads and payroll slightly rising, GOPPAR increased by 3.3% to £47.76.
Graph - UK Chain Hotels Market Review - April 2014

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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
Business Development Manager
+44 (0)207 892 2234
tony.oliveira@hotstats.com




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