Regional hotels continue to outperform London sites

By Noli Dinkovski

- Last updated on GMT

Occupancy: the north-west achieved a combined uplift of 1.9 percentage points
Occupancy: the north-west achieved a combined uplift of 1.9 percentage points

Related tags: Cent, Percentage point, Hotel

Regional hotels have experienced mixed fortunes in gross operating profit per available room (GOPPAR) as national rooms revenues continued to fluctuate in April.

While London hotels posted a decrease in GOPPAR in April, a number of other regions once again recorded positive year-on-year movements across all key performance indicators, according to the latest data from HotStats.

Hotels in the north-west achieved a combined uplift in occupancy of 1.9 percentage points and a four per cent increase in average room rate (ARR). This resulted in an increase of 6.7 per cent in revenue per available room (RevPAR) to £57.51.

However, mixed performances were recorded in non-rooms revenues, which softened total revenue per available room (TRevPAR) levels to a growth of 3.6 per cent, or £103.22.

Hoteliers also managed to reduce payroll by 0.1 percentage points to 31.5 per cent, which delivered a 4.9 per cent surge in departmental operating profit per available room (DOPPAR) compared to the same period last year.

Despite overheads per available room climbing by 2.4 per cent, GOPPAR shot up by 7.2 per cent, delivering a gross operating profit conversion of 29 per cent for the month.

Cardiff comparisons

The HotStats report picked out Cardiff for posting positive year-on-year comparisons across all key performance indicators in the month of April.

Despite surges in operating costs and overheads per available room (up 8.4 per cent), efficient payroll management (from 35.4 per cent to 33.2 per cent) helped to convert revenue gains into a 19.4 per cent increase in DOPPAR, and GOPPAR went up by 32.4 per cent to £29.34.

Significant growth was recorded in both occupancy (up 3.1 percentage points) and ARR (up 10.1 per cent), leading to a 14.7 per cent jump in RevPAR.

Further supported by similar improvements in non-rooms departments and, most notably, with an increase in meeting room hire (up 24.6 per cent), TRevPAR grew by 11 per cent to £107.12.

Glasgow growth

Glasgow hotels also recorded a strong April with TRevPAR and GOPPAR levels rising by 10.6 per cent and 32.6 per cent respectively.

With an uplift in both occupancy (up 1.1 percentage points to 81 per cent) and ARR (up 12.9 per cent to £77.11), hoteliers in Scotland’s largest city experienced a RevPAR growth of 14.5per cent.

Mixed performances were recorded in ancillary departments and TRevPAR went up by only 10.6per cent. Efficient cost control and reduced payroll (down 3.4 percentage points), however, led to a 17.5 per cent DOPPAR increase and, as a result, GOPPAR climbed by 32.6 per cent to £33.76, compared to the same period last year.

Related topics: Hotels, Trends & Reports, Business

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