Regional hotels had a strong July, but those in London suffered from a comparison with the Olympic Games period, two new sets of figures show.
HotStats reports that a year after successfully hosting the Games, London hotels ‘unsurprisingly’ saw July’s gross operating profit per available room (GOPPAR) fall by 14.6% year-on-year to £82.70.
Occupancy in the capital grew by 7.2 percentage points to 87.9%, but this was insufficient to offset a 12.9% decline in average room rate to £148.63, resulting in a 5.2% fall in revenue per available room (revPAR) to £130.59.
In contrast, HotStats figures showed GOPPAR at provincial hotels rose for the fourth consecutive month in July, by 3.9% to £33.41, largely thanks to increased demand due to warm weather in the UK.
Regional occupancy rose by 3.5pp to 80.3%, while average room rate was up 0.4% at £71.78, which helped lift July revPAR by 4.9% to £57.78.
HotStats data are based on 624 hotels across the UK, with an average size of 177 rooms, primarily in the three- and four-star sectors.
Elsewhere, business advisory and accountancy firm, BDO LLP, reports regional hotels saw average room rate slip 1.4% year-on-year to £59.09 in July, but this was more than offset by a 5.1pp increase in occupancy to 80.4%; as a result, revPAR or rooms yield rose 5.2% to £47.51.
BDO’s London figures revealed a 13.6% decline in room rate to £138.20, although occupancy was up 7.9pp at 87.1%. However, this was not enough to prevent a 5% fall in July revPAR to £120.36.
Robert Barnard, partner at BDO LLP, commented: ‘This is another strong showing by regional operators – their impressive performance during the first half of the year shows no signs of slowing down.
‘I’d caution against reading too much into the drop in rooms yield in London, because the comparison is against the month in which the city began hosting the Olympics. The fact that occupancy is almost 90% is a better indicator of the capital’s current strength.
‘Looking behind the numbers, the UK hotel sector appears to be in good shape to take advantage of the nascent economic recovery.
‘The sector’s fundamentals are strong. Some 12 months on from the Olympics, London’s position as a world class business and leisure destination is stronger than ever. Outside the capital, the lack of new development in recent years has helped operators to manage room rate and occupancy during periods of softening demand.
‘It’s important not to get carried away, but the sector has reason to be increasingly optimistic about its future prospects.’