Profit per room at hotels in the UK fell by 4
The drop in profit was primarily due to a
As a result of the movement across all revenue centres, TRevPAR at hotels in the UK fell by 0.9
The fall in revenue was further exacerbated by rising costs, which included a 1.0-percentage-point increase in payroll to 25.7
On a departmental basis, rising costs contributed to falling profit levels in both the Rooms (down 2.3 percent) and Food & Beverage (down 0.9 percent) departments, on a per-available-room basis.
Overall, despite the year-on-year decline in GOPPAR, profit conversion at hotels in the UK in September remained relatively strong at 42.8
Profit & Loss Key Performance Indicators – Total UK (in GBP)
September 2018 v September 2017 | |
RevPAR | -1.3% to £105.77 |
TrevPAR | -0.9% to £159.66 |
Payroll | +1.0 pts. to 25.7% |
GOPPAR | -4.0% to £68.26 |
In addition to the 0.2-percentage-point decline in room occupancy in September to 85.0
The drop in volume and price this month was led by the commercial segment, which suffered a
Whilst hoteliers across numerous markets in the UK would have been glad to see the back of the quieter summer period, unfortunately, the return to business as usual has been blighted by a return to the challenging trading conditions of early 2018.
“This is unsurprising due to the relatively stagnant UK economy, with GDP growing by just 0.5 percent in Q3 2018, and the UK being slow to come back to work following such a celebrated summer period.”
Michael Grove, Director of Intelligence and Customer Solutions EMEA at HotStats.
In contrast to the performance of the total UK, hotels in Liverpool recorded a robust month of profit growth in September as the city welcomed the 2018 Labour Party Conference.
The burgeoning demand levels enabled hoteliers in the River Mersey city to leverage achieved average room rate, which increased by 11.8
Despite the growth in rooms revenue, hotels in Liverpool missed the opportunity to drive
Despite the decline in non-rooms revenue, hotels in the city drove a
The growth in revenue, as well as cost savings, which included a 0.6-percentage-point drop in payroll to 23.7
strong>Profit & Loss Key Performance Indicators – Liverpool (in GBP)
September 2018 v September 2017 | |
RevPAR | +11.4% to £75.39 |
TrevPAR | +6.0% to £102.84 |
Payroll | -0.6 pts. to 23.7% |
GOPPAR | +10.2% to £42.19 |
“The political party conferences are typically a huge benefit to hoteliers in the host city, and this month was no exception for properties in Liverpool,” Grove said. “However, the lack of revenue derived from non-rooms sources will be a disappointment to owners and operators and will be considered a missed opportunity.”
Michael Grove, DIRECTOR OF INTELLIGENCE AND CUSTOMER SOLUTIONS EMEA AT HOTSTATS.
Further south, hotels in Cambridge suffered only their second month of GOPPAR decline in 2018, marring what has been a very positive period of performance so far this year.
Whilst profit per room at hotels in the university city dropped by 12.3
The drop in profit was primarily led by a
The year-on-year decline in top-line performance was primarily due to the absence of key events, which fuelled demand during the same period in 2017.
Profit & Loss Key Performance Indicators – Cambridge (in GBP)
September 2018 v September 2017 | |
RevPAR | -3.8% to £103.24 |
TrevPAR | -4.8% to £145.32 |
Payroll | -0.1 pts. to 17.4% |
GOPPAR | -12.3% to £65.53 |
In addition to the drop in rooms revenue, declines were recorded across all non-rooms departments and, as a result,
And whilst hotels in Cambridge recorded a 0.1-percentage-point uplift in payroll, this cost remained relatively low at just 17.4
Glossary:
Occupancy (%) – Is that proportion of the bedrooms available during the period which
Average Room Rate (ARR) – Is the total bedroom revenue for the period divided by the total bedrooms occupied during the period.
Room RevPAR (RevPAR) – Is the total bedroom revenue for the period divided by the total available rooms during the period.
Total RevPAR (TRevPAR) – Is the combined total of all revenues divided by the total available rooms during the period.
Payroll % – Is the payroll for all hotels in the sample as a percentage of total revenue.
GOP PAR – Is the Total Gross Operating Profit for the period divided by the total available rooms during the period.