Monthly Trends2019 ended on a sour note for UK hotels. According to HotStats data, December marked the third consecutive month of year-over-year profit per available room decrease, as GOPPAR was down 0.9%, according to data from HotStats. In sum, there were nine months in 2019 that saw YOY GOPPAR contraction.
Average rate (up 2.5% YOY) drove rooms revenue growth in December, leading to a 0.1% YOY uptick in RevPAR despite the 1.7-percentage-point YOY drop in occupancy. Ancillary revenue, on the other hand, fell by 0.7% compared to December 2018, mostly due to a 2.1% decline in F&B revenue per available room. As a result, TRevPAR recorded a 0.2% YOY decrease.
UK hoteliers were able to keep overheads under control in December, placing 4.5% below the same month of 2018. This reduction was led by a 2.5% YOY drop in utility expenses. However, the 3.8% increase in total labour costs on the back of shrinking revenue took a toll on profitability. Thus, GOPPAR for the 2019 financial year closed 0.8% below that of 2018.
Profit conversion in the UK was recorded at 38.4% of total revenue in December.
Profit & Loss Performance Indicators – Total UK (in GBP)
| KPI | December 2019 v. December 2018 |
| RevPAR | +0.1% to ₤90.43 |
| TRevPAR | -0.2% to ₤150.42 |
| Payroll | +3.8% to ₤42.43 |
| GOPPAR | -0.9% to ₤57.76 |
Conversely, the city of Bristol marked its eighth consecutive month of profit per available room YOY growth in December, at 5.7%. This increase in profit was achieved despite a contraction in revenue.
A 3.2-percentage-point plunge in occupancy drove RevPAR down 1.4% YOY, despite a 3.5% YOY increase in average rate. A further 0.7% YOY drop in ancillary revenue resulted in a 1.1% fall in TRevPAR compared to December 2018.
Even though overheads increased by 2.6% YOY, the ability of Bristol hoteliers to flex labour costs enhanced their profit in the context of diminished revenue. The contraction of both rooms labour costs (down 5.1% YOY) and F&B labour costs (down 8.9% YOY) placed December total payroll 1.3% below the same month of 2018. Consequently, GOPPAR for the financial year 2019 was 3.4% higher than 2018.
Profit conversion in Bristol was recorded at 33.3% of total revenue in December.
Profit & Loss Performance Indicators – Bristol (in GBP)
| KPI | December 2019 v. December 2018 |
| RevPAR | -1.4% to ₤56.17 |
| TRevPAR | -1.1% to ₤100.06 |
| Payroll | -1.3% to ₤29.25 |
| GOPPAR | +5.7% to ₤33.28 |
Results were bleaker in the city of Northampton, where December marked the 11th month (ninth in a row) of YOY GOPPAR decrease, at 5.0%.
Declines in occupancy (down 0.9 percentage points YOY) and average rate (down 3.7% YOY) resulted in a 5.0% plunge in RevPAR compared to December 2018. Ancillary revenue was also part of this downward trend and recorded an 8.1% YOY fall. Consequently, TRevPAR dropped by 6.6% YOY.
The silver lining is that expenses also contracted in this period. Fueled by an 8.3% fall in F&B payroll, total labour costs were reduced by 9.1% YOY. Also, a 10.9% fall in utility expenses helped bring overheads down by 18.7% YOY. However, this was not enough to offset the dwindling top-line, and GOPPAR for 2019 placed 11.4% below 2018.
Profit conversion in Northampton was recorded at 30.8% of total revenue in December.
Profit & Loss Performance Indicators – Northampton (in GBP)
| KPI | December 2019 v. December 2018 |
| RevPAR | -5.0% to ₤44.62 |
| TRevPAR | -6.6% to ₤90.83 |
| Payroll | -9.1% to ₤23.62 |
| GOPPAR | -5.0% to ₤27.98 |
