HotelsTourism

‘Summer sunshine’ increases profits at UK hotels

Hotels in the UK recorded a 9.2% year-on-year increase in profit per room in August, as warm temperatures increased demand from domestic and international leisure sources.

According to the latest data from hotel benchmarking firm HotStats, overall profit levels increased “significantly” over the summer period, with year-on-year growth recorded in both July (up 7.2%) and August (up 9.2%), as the country enjoyed “well-above-average” temperatures.

The growth in GOPPAR in August was driven by volume from the leisure segment, which accounted for 40.6% of accommodated room nights, and was well above the annual average of 32.1% for the 12 months to August 2018.

UK hotels also recorded a 4.6% increase in achieved average room rate to £118.84, driving an 8% increase in RevPAR for the month to £100.72.

Michael Grove, director of intelligence and customer solutions at HotStats, said: “Whilst the Bank Holiday was a bit of a washout, the warm weather in the UK for the rest of the month played a crucial role in encouraging staycations and fuelling demand for accommodation.

“And alongside astute management from UK hoteliers, the month of August has now been transformed from a historically challenging period of trading to a very positive month of profit performance.”

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