Heathrow hotels boosted in April

28 May 2014 by
Heathrow hotels boosted in April

Hotels in Heathrow have seen a further boost in calendar year results, according to the latest HotStats UK Chain Hotels Market Review.

They reported year-on-year increases in April of 3.7% for total revenue per available room (trevpar), taking it to £82.37, while gross operating profit per available room (goppar) rose 5.4% to £26.36, representing gross profit of 32%.

The surges were accounted for by a 3.7% boost in non-room revenues and 5.7 percentage point rise in occupancy to 80.9%. This, along with efficient operating cost-control, delivered a 2.9% increase in departmental operating profit per available room (doppar).

Profits, however, fell in the North East in April, where hoteliers recorded a decline of 7.3% in goppar to £17.81, despite an increase of 3.9% in revpar to £48.11.

The rise in revpar was attributed to a 1.1 percentage point increase in occupancy and 2.4% lift in average room rate (ARR) to £65.19.

Revenues per available room grew 0.9% from a 14.4% increase in meeting room hire and 1.1% boost in leisure. However, these were negated by higher operating costs, leading to a 4.2% decrease in doppar and a 0.7 percentage point increase in payroll.

In Aberdeen, average room rate (ARR) saw double-digit growth of 10.6% in April, representing the 19th year-on-year increase. This, however, was at the expense of occupancy, which dropped by 3.8 percentage points and led to a revpar increase of 5.1% to £78.50.

The rise in ARR was partly down to a sharp 16.1% increase in the corporate rate, accounting for 38.3% of rooms sold.

TagsFinance and Hotels
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