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Hotels in Edinburgh Enjoy Increased Profit Thanks to a Series of Events
April was incredibly successful for hotels in Edinburgh that managed to increase their profit per room by a fantastic 52.2%. This became possible because of a series of events that boosted both business and leisure travel segments.
The EICC Microbiology Society Annual Conference attracted more than a thousand visitors to the city. After that, the capital of Scotland hosted two more events – the Edinburgh International Science Festival and Melrose Sevens Rugby. These two events helped hotels in Edinburgh to increase their occupancy by 6.6% to 89.2% in total. Because of these events, all segments posted growth in April. The increase of corporate and individual leisure segments reached 20.1% and 21.4% respectively. The average room rate was growing as well and added 21.6% in April 2017 to £112.70. Naturally, the increases in occupancy and room rate boosted RevPAR, the growth of which estimated 31.3%. If analyze the performance of last 12 months, the RevPAR of Edinburgh hotels is second in the country after London hotels. Total revenue per available room (TrevPAR) added 21.5%, helping the profit grow by fantastic 30.4%. The profit added £18.03 to £30.92 in total.
However, not all destinations in the UK could perform so well. Hotels in Birmingham posted the decline in profit of 24%, to the level of £31.73 per room. After a nice performance in Q1, when profit per room added 5.7% and RevPAR added 4.1%, April was a challenging month. This happened because of the extended Easter period that resulted in weaker demand. Therefore, the share of conference and corporate segments in the total demand was only 34.8%, unlike the usual share of 43.2%. The decline of leisure sector demand was 10.4%. Consequently, RevPAR fell by 14.3%, and TrevPAR fell by 14.6%.
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