Profit growth at UK hotels strong despite election uncertainty in June
Profit growth at UK hotels remained strong in spite of the heightened uncertainty across the country as the snap general election ended in a hung parliament last month.
This is according to research by HotStats, which shows GOPPAR (total gross operating profit for the period divided by the total available rooms) across UK hotels by 5.4% in June. This was fuelled by a 6.2% increase in revpar, as hotels recorded a 0.6% increase in room occupancy to 82.7%, and a 5.4% year-on-year uplift in achieved average room rate to £122.23.
In addition to the uplift in revpar, hotels in the UK recorded a 0.7% increase in food and beverage revenue to £42.31 per available room, which contributed to the 4.5% increase in trevpar.
Hotels in London continued to perform strongly in June, with a 6% increase in GOPPAR for the month contributing to the 13.9% year-on-year profit per room increase for year-to-date to £75.15.
Furthermore, the capital continues to benefit from the drop in the value of sterling, with both business and leisure visitors arriving in increasing numbers from North America and Europe.
Despite declines in food and beverage (-1.9%) and conference and banqueting (-5.8%) revenue at hotels in London in June, a 6.3% increase in revpar supported a 4.4% increase in trevpar to £195.07.
Cardiff hotels were amongst the best performing in the UK in June, with GOPPAR increasing by 34.6% year-on-year in the month the 2017 Champions League final between Juventus and Real Madrid took place at the Millennium Stadium.
In addition to the 21.6% uplift in rooms revenue, the high volume of visitors to the Welsh capital fuelled an 18.6% increase in trevpar to £132.82, with significant increases recorded in non-rooms revenues, including food (11.3%) and beverage (11.8%).
Pablo Alonso, chief executive of HotStats, said: “The UK hotel market would have been forgiven for stumbling a little in the messy aftermath of 8 June. However, the strong economic fundamentals of the UK remain and the hotel sector is buoyant, illustrated by the continued upward trajectory this month.
“UK hoteliers are currently enjoying the benefits of Brexit, which has fuelled a record number of overseas visitors to the UK. The high demand levels have enabled room rates to be leveraged in the individual leisure, group leisure and best available rate segments, with the rate premium flowing through to profit. This is great news for hotel owners and operators across the UK.”
News article courtesy of: https://www.thecaterer.com/articles/508184/profit-growth-at-uk-hotels-strong-despite-election-uncertainty-in-june
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