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A 2.6% year-on-year increase in profit per room this month contributed to a 3.4% year-to-date uplift and the ongoing positive story of bottom line growth for South West hoteliers.
That’s according to the latest data from HotStats, which said the South West has been one of the strongest performing regions in recent years. Profit per room increased by 36.9% in the last 36 months, to £31.24 in the 12 months to May 2016 from £22.82 in the 12 months to June 2013.
This uplift has primarily been driven by steady growth in total revenue, recorded at 4.4% in the 12 months to May 2016 to £100.69, and support by astute cost management.
Although the report said South West hotels should be wary of the “ever-increasing” cost of labour, which has grown by 4.2% year-on-year for the month of May to £31.85 per available room – equivalent to 31.6% of total revenue.
Hotels in Leeds recorded a 5.3% increase in revenue per available room (RevPAR) during May. This was driven by a 4.3% increase in average room rate (ARR), which was well ahead of the growth in this measure for the provincial UK as a whole at 2.3%.
The corporate sector in the city remained strong and a 5.6% year-to-date increase in conferencing and banqueting spend, on a per available room basis, contributed to the 4.8% growth in total revenue recorded at Leeds hotels in the five months to May 2016.
Meanwhile, profit per room at hotels in Glasgow declined by 8.4% in May, as the impact of a 3.2% fall in total revenue per available room (TrevPAR) was exacerbated by a 3.1% increase in payroll levels on a per available room basis.
RevPAR for the month was down 3.6% year-on-year to £65.48 from £67.89 during the same period in 2015.
On a rolling 12-month average basis, profit per room has been on the decline since peaking at £42.32 in June 2015, falling to £38.47 in the 12 months to May 2016.
