In its most recent UK Chain Hotels Market Review of May 2016, released this week, HotStats highlighted the South West, Leeds, and Glasgow.
In the South West, it reported a 2.6 per cent year-on-year increase in profit per room for the month, and a 3.4 per cent year-to-date uplift. In the past 36 months, profit per room had grown by 36.9 per cent to £31.24; while total revenue was up 4.4 per cent in the 12 months to May 2016.
In Leeds, the picture was just as positive, with a 5.3 per cent increase in RevPAR (revenue per available room) for the month, pushed up by a 4.3 per cent increase achieved in average room rate – much higher than the average provincial UK, which was at 2.3 per cent. Profit per room was up 14 per cent to £32.38.
The corporate sector in Leeds also did well, with a 15.6 per cent rate increase in the corporate over the last three years, to £71.92 in the 12 months to May 2016. A 5.6 per cent year-to-date increase in conference and banqueting spend also helped push up revenue.
In contrast, Glasgow has been affected by an increase in costs and a decline in profit per room; the latter saw a drop of 8.4 per cent in May, with RevPAR for the month down by 3.6 per cent year-on-year to £65.48.
This was also blamed on additions to supply in the form of 563 new bedrooms to the marketplace – of which 64 per cent were in the budget segment ‒ in 2015, thanks to “recent robust market conditions”, according to HotStats’ analysis.
Profit per room in Glasgow peaked at £42.32 in June 2015, and since then has fallen to £38.47 in the 12 months to May 2016. However, this is still higher than the low of £29.67 recorded in the 12 months to July 2013, which puts “Glasgow hotels in a positive profit position”, HotStats said.
HotStats creates regular reports on the state of the regional and London hotel industries, measuring a host of hotel chain portfolios by performance, revenue, cost, and profit.