Hotel chains outside London continue to perform well

By Michelle Perrett

- Last updated on GMT

Hotel chains in the provinces continued to see upward growth in February
Hotel chains in the provinces continued to see upward growth in February

Related tags: Cent, Percentage point

Hotel chains in the UK provinces continued to show positive year-on-year growth while London hotels struggled during February according to the latest HotStats' UK Chain Hotels Market Review.

Hotels in the provinces saw the largest increase recorded in gross operating profit per available room (GOPPAR) while London showed a general decline with average room rate (ARR) being the only exception. 

The North East was among the best performing regions registering a 20.7 per cent increase in GOPPAR, according to Hotstats.  Occupancy increased by 2.6 percentage points and a surge of 5.6 per cent in ARR resulted in an uplift in revenue per available room (RevPAR) of 9.3 per cent to £53.28.

Non-room revenue also climbed with total revenue per available room (TRevPAR) up by 6.4 per cent to £93.74, compared to the same period last year. 

Meanwhile, hotels at Heathrow reported mixed fortunes for February with RevPAR up and profits down. Despite a RevPAR increase of 1.5 per cent, driven by an increase in demand and ARR, TRevPAR and GOPPAR levels fell.

There was a general decrease in non-room revenue per available room from food (-6 per cent) and beverage (-0.2 per cent) which resulted in the TRevPAR levels declining to £82.84 (-0.5 per cent).  The GOPPAR decline of 0.6 per cent to £24.55 was impacted by a 1 per cent increase in overhead costs. 

The City of Manchester performed strongly in February with TRevPAR and GOPPAR levels rising by 12.9 per cent and 30.3 per cent respectively. All key indicators were up for the city with occupancy (+4.7 percentage points to 81.6 per cent), ARR (+9.4 per cent to £82.58) and RevPAR growth of 16.0 per cent. An overall positive performance was recorded in ancillary departments and TRevPAR went up by 12.9 per cent to £112.17. 

Related topics: Business, Hotels, Trends & Reports

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