GOPPAR at UK hotels fell by 0.7% in July to £71.68 due to rising costs, led by an increase in payroll, which was up 3.6% year-on-year on a PAR basis, according to the latest figures from hotel market benchmarking group Hotstats.
Despite GOPPAR being more than 70% above the year-to-date 2019 figure, the group said it was “another month of profit decline” on the back of solid RevPAR growth.
Hotels recorded a 1% increase in RevPAR to £117.25 during the month, led by 86.6% room occupancy coupled with a 1.5% year-over-year increase in average room rate to £135.52. Hotstats said July is historically a “peak month” for UK hotels, with high occupancy enabling premium pricing that helps fuel top-line performance.
The growth in RevPAR was supported by increases across all hotel departments, including a 1.1% increase in total F&B revenue on a per-available-room basis, which helped contribute to a 1.2% increase in TRevPAR to £166.25.
Michael Grove, managing director, EMEA, at HotStats, said: “UK hoteliers have now recorded a year-on-year profit decrease in six of the last seven months, while over the same period have recorded a decline in RevPAR just once.
“It’s incumbent on hoteliers to find areas to reduce expenses in order to enable higher flow through.”