Hotel profits up across UK in 2014

By Carina Perkins contact

- Last updated on GMT

The UK hotel industry enjoyed a great year in 2014, with cities like Edinburgh recording strong uplifts in profits
The UK hotel industry enjoyed a great year in 2014, with cities like Edinburgh recording strong uplifts in profits

Related tags: Cent increase, Hotel

The UK hotel industry had a ‘great year’ in 2014, with strong December performance helping push profits up across London and the provinces, according to the latest UK Chain Hotels Market Review from Hotstats.

The report highlighted the South West as a particular area of growth, with operating profit per available room (GOPPAR) up by 9 per cent compared to 2013.

Hoteliers in the South West enjoyed a 7.9 per cent uplift in revenue per available room (RevPAR) on the back of a 5.2 per cent increase in room rates and 1.8 per cent growth in occupancy last year, and recorded positive results in non-room departments.

Total revenue per available room (TRevPAR) surged by 5.5 per cent to £92.29in 2014 and efficient payroll management and cost controls also contributed to higher profits.

“For the month of December, South West hoteliers registered positive results across most key performance indicators with payroll being the only exception, thus TRevPAR and GOPPAR figures helped to enhance the overall performance,” stated the Hotstats report.

Cities of growth

Hotels in Edinburgh also performed strongly last year, with RevPAR up 5.3 per cent in the city despite occupancy remaining ‘virtually flat’. Rates were up across all segments, with the biggest increases coming from tours/groups and corporate.

Although overheads increased by 3.5 per cent, astute operating cost control and payroll management helped Edinburgh hotels convert revenue into profits, and GOPPAR in the city rose by 5.1 per cent year-on-year.

In December, RevPAR, TRevPAR and GOPPAR surged by 10.4 per cent, 8.1 per cent and 8.2 per cent respectively.

Meanwhile, Leeds hoteliers saw profits surge by 17 per cent in 2014, with RevPAR up 12.6 per cent on the back of a 9.9 per cent increase in room rates and 1.9 per cent increase in occupancy.

Leeds hotels also saw strong growth in room hire, although this was slightly offset by declining revenue from food and beverage.

Related topics: Hotels, Trends & Reports, Business

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