North West hoteliers report 3.5% profit growth

Chain hoteliers in the North West of England reported an increase in profit during August, despite it typically being one of most “operationally challenging” months of the year.

The latest UK Chain Hotels Market Review from hospitality intelligence firm HotStats found  a 5.5% increase in achieved average room rate (ARR) – despite an absence of occupancy growth – fueled a 3.5% year-on-year profit increase for hoteliers in the North West.

The growth in profit per room in August contributed to another positive year of performance for hotels in the North West, recording a year-to-date profit increase of 3.1% to £33.21 – up from £32.21 during the same period in 2015.

Hotels in York recorded a 15.5% increase in revenue per available room (RevPAR) in August, fuelling an 8.1% increase in profit per room for the month, helping to alleviate plummeting performances following the flooding earlier this year.

It was not such a successful month for chain hotels in Heathrow, with profit per room falling 11.2% as the airport recorded a year-on-year increase in passenger numbers of less than 0.1%.

While hotels at Heathrow achieved a 2.8% increase in ARR to £68.59, it was not enough to offset the 5.8% decline in occupancy. RevPAR fell by 3.9% to £57.32.