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Hoteliers in the North West of England recorded an 11.7% year-on-year increase in profit per room in April, fuelled by the conference segment of the market.
The latest UK Chain Hotels Market Review from Hotstats revealed that despite a 0.1% decline in room occupancy, revenue per available room (RevPAR) increased by 5.7% for North West hotels during the month.
The residential conference segment contributed to a 5.9% uplift in achieved average room rate, to £80.88 from £76.41 during the same period last year.
In addition, an 8.2% increase in conference and banqueting revenue on a per available room basis was recorded, which contributed to a 5.5% increase in total revenue per available room (TrevPAR) to £109 for the month.
Year-on-year payroll levels were up by 3.3% on a per available room basis, as a result of the growth in total revenue. Hotels in the North West recorded an 11.7% increase in profit per room in April, contributing to a year-to-date growth of 1.6%.
Despite recording an 8.5% year-on-year increase in profit per room this month, year-to-date gross operating profit per available room (GOPPAR) has dropped by 5.5% in 2016 against the same period in 2015, as new supply has contributed to a dilution of headline performance levels.
Meanwhile, in the North East, Newcastle hoteliers recorded a 0.1% increase in RevPAR in April, but in the year-to-date this measure has fallen by 7.7%. The report put this down to a 5.7% decline in room occupancy, suggesting hotels have been hit by new openings.
The supply increase in Newcastle has been significant, with an increase of 817 branded hotel rooms since the beginning of 2015 – including the 251-bedroom Crowne Plaza Stephenson Quarter, the 160-bedroom Hampton by Hilton and the 222-bedroom Motel One.
Stratford-upon-Avon in Warwickshire was one of the best performers in the report. Despite the Easter holidays moving from April to March this year, affecting the results, Stratford-upon-Avon hoteliers recorded a 26.7% increase in profit per room during the month.
