.
Travel Reservations - OrangeSmile Tours
Best destinations around the world - Travel Guide

Find the right hotel

Hotel Business News and Analytics
Important! This article is written by orangesmile.com editors and is protected by copyright law. The article can only be re-used with a direct link to www.orangesmile.com
NEWS BLOCKS:
 01 
 02 
 03 
 04 
 05 
 06 
 07 
 08 
 09 
 10 
 11 
 12 
 13 
 14 
 15 
 16 
 17 
 18 
 19 
 20 
 Latest 

Strong October for Hotels in the UK

News October was another successful month for hotels across the UK that managed to reach improvements in all revenue-generating departments. Thanks to that and effective cost management, it became possible to reach a 9% year-on-year increase in profit per room.

Room occupancy added 2.3% to 83.5%, and hotels raised their rates by 5.3% to £122.92. This made RevPAR (revenue per available room) grow as well, adding 8.3% to £102.67. Moreover, hotels in the UK reported an increase in non-room revenues, such as Conference & Banqueting (+5.7%) and Food & Beverage (+4.3%). Improved metrics from all departments contributed to the growth of TRevPAR that reached £156.36 (+6.6%). Of course, that is significantly lower than the peak month of July when TRevPAR was £162.59, but it is still 10.4% above the result of October 2017, £141.58.

Such strong results of October were mostly driven by the growing commercial sector demand. Business travelers accounted for almost 40% of all booked rooms. School half-term holidays were the second most important reason for the success. That said, not all cities across the UK performed equally well. For example, hotels in Newcastle had to face difficulties driven by the growing costs. Payroll added 1% to 30.7% in total revenue, and overheads added 1.4% to 26.7% in total revenue.

Occupancy remained fairly strong and added 2.2% to 77.1%. However, room rates dropped by 2.3% to the average of £74.56. RevPAR ended up adding only 0.5% because of that, reaching £57.49. TRevPAR remained almost flat and added only 0.1% to £91.41. The growth in room revenues was the only reason for that – it was sufficient enough to offset the decreasing non-room revenues. The decline in Food & Beverage, for instance, estimated 1.6% to £29.74. As a result, profit per room (GOPPAR) decreased by 10.4% to £25.40. Newcastle hotels show long-term declines in profit within the last 12 months.

Opposite to Newcastle, hotels in Birmingham were among the best performing in the UK in October 2018. The city welcomed several conferences, such as the 2018 Conservative Party Conference, and that greatly helped the hospitality industry of the city. The event of the Conservative Party alone drew more than 11,000 visitors to the city. Consequently, hotels in “the second city in Britain” managed to boost their room rates by 5.6% to £97.52 and RevPAR – by 4.2% to £78.54. Profit per room added 8.5% to £55.37. That is not only the highest result in 2018 but also as much as 46% higher than the year-to-year profit of £37.91.

03.12.2018

Previous article / Back to news index

Stay in touch with the latest news of a worldwide hotel industry. All up-to-date analytics, reports, and news about hotel business trends on OrangeSmile.com.

Our travel services
 Car Rental
Car Hire Worldwide
 News in languages
English 
Deutsch 
Nederlands 
French 
Russian
 Top 10 destinations
Anaheim
43 hotels
Bonn
59 hotels
Cordoba
72 hotels
Glasgow
87 hotels
Kefallonia
84 hotels
Maastricht
49 hotels
New Delhi
108 hotels
Portimao
42 hotels
Santorini
394 hotels
Toledo
52 hotels