South West hotels lead strong March performance

According to the UK Chain Hotels Market Review for March, South West hotels saw average room rates (ARR) soar by 6 per cent, while occupancy held steady with a 0.4 per cent uplift, driving revenues per available room (RevPAR) up 6.5 per cent.

Combined with improvements in food and meeting and room hire revenues, this contributed to a 4.9 per cent surge in total revenues per available room (TRevPAR), the 18 consecutive month of year-on-year increases for hotels in the South West.

Efficient payroll and operating cost control helped meant operating profit per available room (DOPPAR) rose by 5.4 per cent to £48.82, which helped offset a 4.5 per cent increase in overhead costs, resulting in a 6.2 per cent rise in gross operating profit per available room (GOPPAR).

“When looking at the first quarter of 2014, South West hotels posted strong results across all key performance indicators and contributed to the positive dynamics of the rolling twelve month data for this region,” said the report.

Newcastle growth​

Hotels in Newcastle also experienced year-on-year growth, with RevPAR up 4.3 per cent as a result of increased occupancy and a 2.3 per cent uplift in room rates. Revenues from food, beverage and meeting room hire increased by 11.8 per cent, 15.6 per cent and 24.8 per cent respectively, driving TRevPAR growth of 6.9 per cent to £95.06.

Astute payroll management and operating cost control helped offset a 5.1 per cent increase in overheads, driving GOPPA growth of 6.5 per cent to £26.30.

However, Hotstats said that while Newcastle hotels have performed well so far this year, with ‘cumulative positive trends’ across most performance metrics, the city’s TRevPAr and GOPPAR are still down 1.1 per cent and 5.6 per cent respectively over the 12 month period.

Cardiff downturn​

In contrast, Cardiff hotels struggled in March. Although a fall of average room rates was offset by an uplift in occupancy, resulting in a 0.9 per cent increase in RevPAR, mixed performances were recorded in non-room revenues and TRevPAR fell by 0.7 per cent to £105.11.

Profits were further hit by rising payroll, operating costs and overheads and GOPPAR fell by 7.8 per cent to £31.06.

However, Hotstats noted that despite the March downturn, hoteliers in the city have achieved a 4.6 per cent increase in TRevPAr and 7.3 per cent increase in GOPPAR in the first quarter.