Read us | Listen to us | Watch us | Join Live Events | Turn Off Ads | Live |

Click on your language to translate this article:

Afrikaans Afrikaans Albanian Albanian Amharic Amharic Arabic Arabic Armenian Armenian Azerbaijani Azerbaijani Basque Basque Belarusian Belarusian Bengali Bengali Bosnian Bosnian Bulgarian Bulgarian Cebuano Cebuano Chichewa Chichewa Chinese (Simplified) Chinese (Simplified) Corsican Corsican Croatian Croatian Czech Czech Dutch Dutch English English Esperanto Esperanto Estonian Estonian Filipino Filipino Finnish Finnish French French Frisian Frisian Galician Galician Georgian Georgian German German Greek Greek Gujarati Gujarati Haitian Creole Haitian Creole Hausa Hausa Hawaiian Hawaiian Hebrew Hebrew Hindi Hindi Hmong Hmong Hungarian Hungarian Icelandic Icelandic Igbo Igbo Indonesian Indonesian Italian Italian Japanese Japanese Javanese Javanese Kannada Kannada Kazakh Kazakh Khmer Khmer Korean Korean Kurdish (Kurmanji) Kurdish (Kurmanji) Kyrgyz Kyrgyz Lao Lao Latin Latin Latvian Latvian Lithuanian Lithuanian Luxembourgish Luxembourgish Macedonian Macedonian Malagasy Malagasy Malay Malay Malayalam Malayalam Maltese Maltese Maori Maori Marathi Marathi Mongolian Mongolian Myanmar (Burmese) Myanmar (Burmese) Nepali Nepali Norwegian Norwegian Pashto Pashto Persian Persian Polish Polish Portuguese Portuguese Punjabi Punjabi Romanian Romanian Russian Russian Samoan Samoan Scottish Gaelic Scottish Gaelic Serbian Serbian Sesotho Sesotho Shona Shona Sindhi Sindhi Sinhala Sinhala Slovak Slovak Slovenian Slovenian Somali Somali Spanish Spanish Sudanese Sudanese Swahili Swahili Swedish Swedish Tajik Tajik Tamil Tamil Thai Thai Turkish Turkish Ukrainian Ukrainian Urdu Urdu Uzbek Uzbek Vietnamese Vietnamese Xhosa Xhosa Yiddish Yiddish Zulu Zulu

UK hotels: Rough start to the final quarter of 2019

Like the three that preceded it, the final quarter of 2019 started with a year-over-year fall in profits per available room in the UK, according to the latest data. The 5.3% YOY drop in GOPPAR in October was only surpassed by the 9.4% plunge recorded in April, and marks the seventh month in the year to record a YOY contraction in profits.

A small 0.1% YOY uptick in average room rate was not enough to offset the effects of declining occupancy, which dropped by 2.2 percentage points YOY. As a result, RevPAR fell by 2.3% compared to the same month last year—the biggest cutback for this metric in 2019.

Led by a decrease in F&B revenue per available room (down 0.7% YOY), non-rooms revenue also took a hit in October, recording a 1.0% YOY fall. With declines across all major revenue centers, total revenue per available room dropped by 1.9% YOY.

The inability of UK hoteliers to control costs intensified the negative effects of a shrinking top-line. Labor costs increased by 2.2% YOY on a per-available-room basis, while overheads grew by 0.2%. This contributed to widening the profit gap between 2019 and 2018, with YTD 2019 profit per available room lagging 0.8% behind YTD 2018.

Profit conversion in the UK was recorded at 39.8% of total revenue.


Profit & Loss Performance Indicators – Total UK (in GBP)

KPI October 2019 v. October 2018
RevPAR -2.3% to ₤101.91
TRevPAR -1.9% to ₤155.71
Payroll +2.2% to ₤41.97
GOPPAR -5.3% to ₤61.93


Cardiff is a happy exception to the overall negative results in the UK, and the 9.0% YOY increase in GOPPAR achieved in October marks the third consecutive month of profit growth in the city.

This profitability boost was driven by a strong top-line. Fueled by YOY growth in occupancy (up 1.5 percentage points) and average rate (up 5.0%), RevPAR achieved a 5.0% increase compared to the same month of last year. F&B revenue per available room also exhibited a positive trend, climbing by 2.0% YOY. This resulted in a 3.1% YOY growth in total revenue per available room.

Even with increasing occupancy, hoteliers in Cardiff managed to control labour costs, which recorded no change compared to October of 2018 on a per-available-room basis. Overhead costs increased slightly year-over-year, by 0.4%. Despite these favorable results, YTD 2019 GOPPAR in Cardiff is still 0.5% below the YTD 2018 results.

Profit conversion in Cardiff was recorded at 31.1% of total revenue.


Profit & Loss Performance Indicators – Cardiff (in GBP)

KPI October 2019 v. October 2018
RevPAR +5.0% to ₤68.95
TRevPAR +3.1% to ₤103.65
Payroll 0.0% to ₤30.41
GOPPAR +9.0% to ₤32.20


With a 6.3% YOY decline in GOPPAR, October broke the seven-month streak of profit per available room growth in Edinburgh. Still, the positive results achieved in the previous months place the city’s YTD 2019 GOPPAR 4.2% above the same period of last year.

RevPAR suffered a 2.2% drop compared to October 2018, pulled by a 0.2 YOY percentage point fall in occupancy and a 1.9% YOY decrease in average rate. Conversely, F&B revenue per available room grew by 8.0% on a YOY basis, driving total revenue per available room up by 0.4% YOY.

This uptick in total revenue was not strong enough to counter the growth in expenses. The 4.3% YOY soar of labor costs per available room and the 3.2% YOY increase in overheads ended up eroding profitability for hoteliers in the city.

Profit conversion in Edinburgh was recorded at 36.5% of total revenue.


Profit & Loss Performance Indicators – Edinburgh (in GBP)

KPI October 2019 v. October 2018
RevPAR -2.2% to ₤106.35
TRevPAR +0.4% to ₤151.88
Payroll +4.3% to ₤42.01
GOPPAR -6.3% to ₤55.50
Print Friendly, PDF & Email