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Provincial Hotels in the UK Post Growth While London Declines

July 2014 brought mixed results for hotel industry of the UK. The main market of the country, London, posted declines for a third consecutive month, but provincial hotels managed to increase their gross operating profit per available room (GOPPAR) with North West hoteliers reaching best results in this metric - +22.2%.

Hotels in North West of the UK managed to increase their average room rate (ARR) by 11.5%, and occupancy added 3.1% to 80.8% in July 2014. This helped RevPAR grow by 15.9%. Revenues in other categories also grew – revenue per available room from food and beverage added 5.1% and 4.8% respectively, while revenues from hiring meeting rooms added 11.2%. This helped total revenue per available room (TRevPAR) grow by 10.4%. Finally, GOPPAR growth estimated 22.2% for the month of July.

The second stage of Tour de France, which took place in York, helped hotels in the city boost their profits. The increases in TRevPAR and GOPPAR estimated 9.5% and 8.4% respectively. Increased room rate also helped hoteliers in the city enjoy double increase in RevPAR. Departmental operating profit per available room (DOPPAR) also added 8.2% because of efficient cost control. Finally, Swindon is another strong performer for the month of July 2014. Hotels in Swindon experienced growth of all main indicators, including occupancy (+5.2%), average room rate (+12%), RevPAR (19%), and TRevPAR (+14.7%).

18.09.2014

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