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.
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