UK regional hotel growth 'outshining' London

Latest data from HotStats suggests regional hotels are performing better than their London counterparts, with Manchester recording a rise in gross operating profit per available room (GOPPAR) of 30.3% for February compared with the previous year.

Manchester hotels see 30% growth in gross operating profit
Manchester hotels see 30% growth in gross operating profit

Despite overheads per available room climbing by 4.7% in the city, GOPPAR increased to £35.81 last month.

There was a 12.9% uplift in total revenue per available room (TRevPAR) to £112.17, while revenue per available room (RevPAR) grew by 16%. The average room rate (ARR) in Manchester rose by 9.4% to £82.58, with occupancy climbing by 4.7 percentage points to 81.6%.

The growth in UK regions is outshining that of London, which posted a general decline aside from ARR. 

The North East was among the best performing regions, registering a 20.7% increase in GOPPAR. A combined surge in occupancy of 2.6 percentage points and 5.6% in ARR prompted a 9.3% uplift in RevPAR to £53.28. With non-rooms revenues also climbing, TRevPAR rose by 6.4% to £93.74, compared to the same period last year.

In the South, Heathrow hotels demonstrated that RevPAR alone can be a misleading indicator of hotel health by recording a rise of 1.5%, while TRevPAR and GOPPAR levels fell by 0.5% and 0.6% respectively over the same period.

A surge in demand of 0.9 percentage points, combined with a 0.3% increase in ARR, delivered the RevPAR growth. In addition, travel agency commission per occupied room reduced by 4.3% to £4.72. 

However, a general decrease in non-rooms revenue per available room from food and drink led TRevPAR levels to decline to £82.84.

More Manchester news:

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