North West hotels enjoy profitable July

By Carina Perkins contact

- Last updated on GMT

Hotels in the provinces enjoyed strong growth in July, while London properties suffered
Hotels in the provinces enjoyed strong growth in July, while London properties suffered

Related tags: Cent, Profit

London hotel profits dropped for the third consecutive month in July while profitability in the provinces soared, according to the latest data from HotStats.

The latest HotStates UK Chain Hotels Market Review revealed that North West hoteliers enjoyed the biggest profit growth last month, with gross operating profit per available room (GOPPAR) up 22.2 per cent year-on-year.

Analysts said this was North West hotels enjoyed a 11.5 per cent growth in average room rates (ARR), with occupancy up 3.1 per cent to 80.8 per cent, resulting in a 15.9 per cent rise in revenue per available room (RevPAR).

TRevPAr was further boosted by strong increases in revenue from food, beverage and meeting room hire, with astute operating cost control and a drop in payroll helping offset a 6.2 per cent rise in overheads, and contributing to the strong profit growth.

hotstats-july

York and Swindon growth

Meanwhile, hoteliers in York also enjoyed strong profit growth of 8.4 per cent for the tenth consecutive month.

According to the data, occupancy dropped by 0.3 per cent but APR surged 12.7 per cent, resulting in double digit RevPAR growth.

Hotels in York also performed well in the non-rooms departments, particularly in meeting room hire, which surged by 41.4 per cent. As a result TrevPAR rose 9.5 per cent, with efficient operating cost control and a drop in payroll helping offset an 8 per cent increase in overheads.

However, it was hotels in Swindon that enjoyed the strongest profit growth, with TRevPAR and GOPPAR increasing by 14.7 per cent and 38.9 per cent respectively year-on-year.

HotStats said that RevPAR was boosted 19 per cent by a combined surge in occupancy and ARR, with positive results in ancillary departments contributing to the TRevPAR growth.

DOPPAR rose 18.2 per cent, with Swindon hoteliers managing to reduce payroll and overheads to maximise profits for the month.

Related topics: Business, Hotels, Trends & Reports

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