Double-digit profit growth for regional hotels

By Melodie Michel contact

- Last updated on GMT

Scottish hotels enjoyed particularly strong profit growth in September
Scottish hotels enjoyed particularly strong profit growth in September

Related tags: Cent, Hotel, Profit

Hotels in the provinces and Scotland outperformed London’s profit growth in September, according to HotStats’ latest report.

Scottish hotels recorded a 27.3 per cent rise in gross operating profit per available room (GOPPAR) to £67.74, despite virtually flat occupancy.

The boost came from a 21.7 per cent increase in average daily rates (ADR), resulting in £98.56 revenue per available room (RevPAR), up 21.6 per cent.

Additionally, all non-rooms departments except food and beverage recorded positive performances leading to a 13.6 per cent growth in total revenue per available room (TRevPAR).

Hoteliers also achieved a 20 per cent rise in departmental operating profit per available room (DOPPAR) to £97.97, despite a 7.3 per cent jump in overheads, thanks to ‘astute payroll and operating cost control’.


Bristol hotels also enjoyed a profitable September and year-on-year growth across all key performance indicators, as TRevPAR and GOPPAR increased by 19.8 per cent and 43.4 per cent respectively.

A 5.6 per cent surge in occupancy to 84.8 per cent, combine with ADR growth of 17.6 per cent, boosted RevPAR by 25.9 per cent compared to the same period last year.

Non-room departments also performed well, particularly leisure (up 20.2 per cent) and meeting room hire (up 18.9 per cent) leading to a TRevPAR rise of 19.8 per cent.

DOPPAR also grew 26.9 per cent as payroll dropped by 2.4 per cent. Despite overheads rising by 6.6 per cent, GOPPAR increased by 43.4 per cent to £42.05 in Bristol.

Milton Keynes

In Milton Keynes too, hoteliers recorded a positive September, with TRevPAR and GOPPAR rising by 8.1 per cent and 43.1 per cent respectively.

Occupancy went up 2.8 per cent to 82.1 per cent, while ADR grew 9.5 per cent – resulting in a 13.3 per cent rise in RevPAR.

However, performance was mixed in ancillary departments, leading to limited TRevPAR growth (8.1 per cent). Efficient cost control and reduced payroll (by 0.7 per cent) resulted in a 9.7 per cent DOPPAR increase, and GOPPAR growth of 43.1 per cent to £41.54.

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