The UK provincial hotel market registered positive year-on-year movements across all key performance indicators for the month of July. Hotels in the North East recorded a 3.3% increase in gross operating profit per available room (GOPPAR) according to the latest data from HotStats.
Hoteliers in the North East achieved a 1.4 percentage point increase in occupancy to 84.6%, though this came at the expense of a marginal decrease in average room rate (ARR) of 0.4% resulting collectively in a 1.3% uplift in revenue per available room (RevPAR) to £58.44. Due to mixed performances in non-rooms revenues, total revenue per available room (TRevPAR) growth levels was softened to 0.4%.
Payroll decreased by 0.5 percentage points helping to deliver the 1.9% increase in departmental operating profit per available room (DOPPAR) to £57.40. Despite a marginal increase in overheads per available room (+0.2%), GOPPAR increased by 3.3% to £30.88 compared to the same period last year.
Newcastle performs
Newcastle hoteliers recorded positive movements for the month of July, with TRevPAR and GOPPAR climbing by 3.4% and 9.1% respectively.
Hotels in Newcastle experienced a rise in occupancy of 1.5 percentage points to 84.6%, along with an ARR growth of 2.1%. The two highest rate increases were attributed to the tours/groups (+36.2% to £47.53) and conference (+9.6% to £78.31) segments. Altogether, this led to a RevPAR growth of 3.9% to £57.32. TRevPAR increased by 3.4% to £96.06 most notably due to a 22.8% increase in meeting room hire revenue per available room for the month. DOPPAR also rose by 6.1% thanks to profitable operating cost control alongside a payroll decrease of 0.9 percentage points.
Profits drop in Oxford
Hotels in Oxford, on the contrary, experienced a challenging month of July with occupancy levels declining by 5.1 percentage points to 86.5%. The city posted negative movements across all KPIs aside from ARR. Even though there was a 1.9% uplift in ARR, RevPAR still dropped 3.8% to £105.32.
An overall decrease in non-rooms revenue per available room from food (-17.9%), beverage (-16.9%) and meeting room hire (-24.2%) led to the TRevPAR level decline of 7.5% to £142.06. There was a slight increase in payroll costs (+0.3 percentage points) which added to the significant GOPPAR decline of 14.2% to £63.45, representing a gross operating profit conversion of 44.7% for the month of July.
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