A 5.6% year-on-year increase helped hotels in the UK hit a historic TRevPAR (the combined total of all revenues divided by the total available rooms during the period.) high this month, propelled by a robust year-on-year increase in RevPAR and also supported by growth in non-rooms revenues, according to the latest worldwide poll of full-service hotels from HotStats.
At £162.48 per available room, TRevPAR at hotels in the UK in July was 0.8% above the previous high of £161.14 recorded in September 2017 and represented a second consecutive month of TRevPAR growth in what has otherwise been a fairly forgettable year of trading for hotels in the UK.
Hotels in the UK successfully recorded an increase in both room occupancy (+1.7-percentage points), to 87.1%, as well as a 5.7% increase in achieved average room rate, which soared to a high of £131.21 and was 4.4% ahead of the previous high.
The growth in rooms revenue in July was supported by a year-on-year increase in non-rooms revenues, including food & beverage (+0.4%) on a per available room basis. However, further TRevPAR growth was hampered by a 0.6% decline in conference & banqueting revenue.
In addition to the growth in revenue, hotels in the UK successfully recorded a 0.6-percentage-point saving in payroll, which fell to 24.8% of total revenue.
As a result of the movement in revenue and costs, profit per room at hotels in the UK increased by 7.2% year-on-year to £71.10. Whilst this was not a record, it did equal the profit performance of September 2017.
The robust demand levels were led by the leisure segment, which accounted for 36% of accommodated roomnights this month, well above the annual average of 31.9% for the 12 months to July 2018.
Growth was also supported by increases in the achieved rate in the commercial segment, including the corporate (+3.5%) and residential conference (+11.9%) sectors.
“July is not historically a month during which UK hoteliers would expect to be achieving a TRevPAR high. However, soaring demand levels, which have primarily been led by the leisure segment have helped hotels to drive top line revenues in this month over the last couple of years,” said Pablo Alonso, CEO of HotStats.
“The strength of demand has been attributed to an uplift in staycations since the Brexit vote, as well as an increase in international visitors to the UK. The improvement will be to the delight of hotel owners and operators as July presents an opportunity to drive revenue and profit which previously did not exist.”