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Profit growth at hotels in the UK failed to match the high temperatures in April, which led to a 0.9% decline in gross operating profit per available room (GOPPAR).
According to figures from hotel benchmarking service Hotstats, hotels in the UK recorded a 0.6% year-on-year increase in TrevPAR in April, which grew to £134.12.
Despite this, the marginal revenue increase was not sufficient to offset the uplift in costs, which included a 0.4% increase in payroll to 29.6% of total revenue, as well as a 0.1% increase in overheads, which grew to 22.8% of total revenue.
Profit and loss key performance indicators – April 2018 v April 2017:
- RevPAR: -0.3% to £87.59
- TrevPAR: +0.6% to £134.12
- Payroll: + 0.4 pts to 29.6%
- GOPPAR: -0.9% to £47.98
Pablo Alonso, CEO of HotStats, said: “Demand levels have softened since the beginning of 2018, which may be attributed to the poor weather, the slowing in the UK economy and, this month, the timing of Easter.
“But it’s also clear that the increase in minimum wage and employer pension contributions have caused an increase in payroll levels. So, despite a rise in TrevPAR, payroll as a percentage of total revenue has grown and taken a bite out of profits.”
