‘Discordant' performance at UK hotels continues

Revenue growth hasn't been an issue for UK hoteliers this year, but driving profit has been a frustration, according to hotel market analysis service HotStats.

Revenue per available room (revpar) grew slightly 0.3% year-on-year in November, while gross operating profit per available room (goppar) was down 1.8% year-on-year, illustrating the sometimes incongruous relationship between revenue and profit.

Yearly numbers note the trend: revpar is up 1.9% for the year to date, while goppar is down 0.9%. While 2019 has seen eight months of year-on-year total revenue per available room (trevpar) increases, it has also seen eight months of year-on-year goppar declines.

The divergent revenue and profit picture across the UK held true for the month in Birmingham (pictured), where both revpar and trevpar were up year-on-year 3.6% and 1.1%, respectively, against a year-on-year decrease in goppar of 1.5%.

London hotels checked in with similar results. Revpar in the month was up 0.7% year-on-year on a 2.6% increase in average room rate. Occupancy was down 1.5 percentage points to 82.3%. Total revenue was down 0.4% year-on-year, as total food and beverage revpar decreased 2.4%.

For year-to-date, hotels in London have recorded a 2.6% increase in trevpar and a 1% increase in goppar, signs of a still strong, if not more restrained in growth, market. Profit margin for the month of November was recorded at 44.7%, one percentage point less than the same time last year.