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Hotels in Provincial UK Get More Profit While London Suffers

This summer cannot be called a successful one for hotels in London that suffer lower profitability for second consecutive month. At the same time, provincial hotels post improved year-to-year results. This is particularly true about East Midlands, where gross operating profit per available room (GOPPAR) added 3.3% in June 2014.

Hotels in East Midlands managed to increase their occupancy by 1.1% and also reached the growth of average room rate (ARR) of 1.6%, making revenue per available room (RevPAR) grow by 3.1% to £45.92 in total. Non-room profits also grew and helped TRevPAR (total revenue per available room) add 1.4% and estimated £88.94 in total. That is the 17th consecutive month of growth of the metric. Gross operating profit grew by 3.3% to £27.07.

Liverpool is another city where hotels showed improved results in June. Here the growth of GOPPAR estimated 5.1% compared to the same month one year ago. Strong performance was supported by the growth of RevPAR by 10.5%, efficient cost management and improved departmental profit.

However, not all hotels in the provincial UK posted improved results. Coventry hotels managed to improve their RevPAR by 4.7% in June mostly thanks to increased ARR, but with falling non-room revenues TRevPAR lost 1.2% and GOPPAR lost significant 18.5%.

07.08.2014

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