Further growth for UK hotel market

By Carina Perkins contact

- Last updated on GMT

Related tags: Cent increase, Hotel

Hotels in the East of England, Oxford, Edinburgh and Glasgow all recorded growth
Hotels in the East of England, Oxford, Edinburgh and Glasgow all recorded growth
UK hotels enjoyed a second month of growth in February, with properties in the East of England reporting the biggest uplift in profits.

According to the latest UK chain hotels market review from Hotstats, hoteliers in the East saw gross operating profit surge 48.3 per cent in February on the back of increased demand, higher prices and more efficient management.

The data revealed that occupancy in the East was up 5.7 percentage points, while average room rate (ARR) lifted 3.1 percent, resulting in a 12.7 per cent increase in revenue per available room (RevPAR) to £42.32.

Total revenue per available room (TRevPAR) rose for the fourth month in a row, and was up by 11 per cent to £76.31.

The report stated that the increase in revenue performance was ‘further enhanced by efficient payroll management and efficient operating cost control’.

Departmental operating profit per available room (DOPPAR) rose 16 per cent to £39.22, while a rise in overheads was offset by an improvement in profit conversion.


Hotels in Oxford also achieved positive year-on-year growth, with TrevPAR and operating profits up by 12.3 per cent and 20.3 per cent respectively.

The Hotstats report said hotels in the region recorded ‘significant growth’ in both occupancy and room rates, resulting in a 12.4 per cent growth in RevPAR.

A 22 per cent increase in food revenues per available room pushed TrevPAR up by 12.3 per cent to £106.38 per cent, and an improvement in profit conversion helped drive a 12.4 per cent DOPPAR increase to £58.98 per cent.

With total payroll down by 0.6 percentage points, Oxford hotels recorded a 20.3 per cent increase in operating profits to £33.08.


Edinburgh’s hotel market also continued to shine, with hoteliers recording a 12th​ consecutive month of TrevPAR and operating profit growth, up 10.5 per cent and 22.6 per cent respectively.

The report said TRevPAR was boosted by an uplift in occupancy and ARR, as well as increases in food and beverage revenues.

‘Astute payroll and operating profit control’, combined with a reduction in travel agent commission per available room pushed up average operating profit.



Meanwhile, a separate report from LJ Research revealed that Glasgow’s hotel sector recorded ‘record-breaking results’ in February.

According to the LJ Forecaster report, hotels in the city recorded average occupancy of 78.3 per cent – a 5.3 per cent year-on-year increase and the highest since monthly record keeping began in 1999.

The report also revealed that that Glasgow’s year-to-date occupancy average is operating at 80.6 per cent - a 3.5 per cent rise on the same period last year.

Room rates rose 6.8 per cent in February to an average of £63.36.

Philip Mellor, general manager of Menzies Hotel and co-chair of the Greater Glasgow Hotels Association (GGHA), said: “Our hotel sector has enjoyed nine consecutive months of growth, with some of the highest occupancy rates since records began.

“We’re seeing the significant investment that has taken place in Glasgow over the past 10-15 years, coupled with the city’s growing reputation as a host city for major events and international conferences, reflected in the strength of our hotel industry, and the wider tourism sector, today.

“This is welcome news for Glasgow’s hoteliers, during the biggest year in the city’s history, and will give continued confidence to those breaking ground on new developments or with developments in the pipeline.”

Related topics: Trends & Reports, Business

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