UK room rates up 2.9 per cent in August, finds HotStats
Average room rates in the UK increased by 2.9 per cent year-on-year in August to £123.70, according to the latest report from HotStats.
And room occupancy hit 83.9 per cent in the same period. The month saw profit per room at UK hotels increase year-on-year for only the second time this year. Gross operating profit per available room (GOPPAR) was up 0.6 per cent in August.
Unsurprisingly the leisure sector dominated the market mix in August, accounting for 41.5 per cent of total roomnights sold, a 0.2 per cent year-on-year increase. Profit per room for YTD 2019 remains 0.3 per cent behind the same period in 2018 at £51.04.
“August is consistently one of the stronger trading months in the UK each year, and hoteliers will be keen to keep the momentum going after a year of broad negative GOPPAR growth,” said Michael Grove, managing director, EMEA, HotStats. “In order to do so, expense control will be an utmost priority, especially as payroll continues to rise. In fact, August was the highest month of payroll expense growth so far this year.”
Revenue levels were driven by a spike in room occupancy, which was recorded at 94.6 per cent for the month, and coupled with an average rate of £211.51, a high for the year and almost 50 per cent above the year-to-date rate performance at £141.18.
And while hotels in the city only recorded a 0.4 per cent year-on-year increase in profit per room in the month, GOPPAR was almost £75 above the year-to-date figure of £65.79.
Down in Brighton the summer sun fuelled demand in the seaside city, driving a 2.7 per cent increase in room occupancy to 91.3 per cent. This was coupled with a 3.4 per cent year-on-year increase in average room rate, which grew to £122.54.
Published Date: 08/10/2019