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Hotels Across the UK Drastically Improve Their TRevPAR in July 2018
July brought good news for hotels in the UK. Thanks to a surge of 5.6%, they managed to reach a record result of TRevPAR (total revenue per available room). This became possible thanks to the growing RevPAR and non-room revenues.
With the current TRevPAR of £162.48 per room, UK hotels overcame the previous record result of £161.14 achieved in September 2017. July 2018 also became the second consecutive month of growth for hotels of the country. Naturally, this growth was mostly driven by an increase in RevPAR of 7.9% to the level of £114.34. This is also an important milestone for hotels of the country as the last record RevPAR of £107.14 was achieved ten months ago.
Naturally, such results became possible thanks to growing occupancy (+1.7%) to 87.1% and an incredibly high average room rate of £131.21. Not only room revenues benefited to the success. Non-room revenues were growing as well, such as food & beverage (+0.4%). Profit per room added 7.2% to £71.10. Even though the profit level is not a record one, it is on par with the results of September 2017.
Growing demand geared up by the leisure sector is one of the reasons for such success. In July 2017, it accounted for 36% of all room nights, which is higher than the average 31.9% achieved during the period from July 2017 to July 2018. Corporate and residential conference segments also posted growing results of +3.5% and 11.9% respectively. London hotels were one of the biggest driving forces of the success. Their profit added solid 12.8% to £115 in July 2018. That is ahead of the record result achieved in September 2017 (£107.64) and almost 45% higher than the profit lever recorded a year ago.
Key profit indicators of hotels in London were the following in July 2018. RevPAR added 12.5% to £178.57, TRevPAR grew by 9.9% to £226.79, and GOPPAR added 12.8% to £115. Such tremendous results were achieved mostly thanks to a fantastic increase in occupancy of 4.7% to 92.1% and an all-time record average room rate of £193.90 (+6.7%).
However, not all regions of the country enjoyed such fabulous results. Hotels in Stratford-upon-Avon suffer from declining metrics six months in a row. July was no exception. Profit per room lost 10.9% and fell to £42.54. Even though Stratford-upon-Avon hotels enjoyed higher occupancy of 81.8% in July 2018 (+1.8%), revenues fell because of declining average room rate (-2.4%). RevPAR lost 0.3% to £75.27. Moreover, hotels in the birthplace of Shakespeare suffered from falling non-room revenues that contributed to the negative result of TRevPAR (-6.7% to £124.51).
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