Double-digit profit growth for regional hotels

Scottish hotels enjoyed particularly strong profit growth in September

Hotels in the provinces and Scotland outperformed London’s profit growth in September, according to HotStats’ latest report.

Scottish hotels recorded a 27.3 per cent rise in gross operating profit per available room (GOPPAR) to £67.74, despite virtually flat occupancy.

The boost came from a 21.7 per cent increase in average daily rates (ADR), resulting in £98.56 revenue per available room (RevPAR), up 21.6 per cent.

Additionally, all non-rooms departments except food and beverage recorded positive performances leading to a 13.6 per cent growth in total revenue per available room (TRevPAR).

Hoteliers also achieved a 20 per cent rise in departmental operating profit per available room (DOPPAR) to £97.97, despite a 7.3 per cent jump in overheads, thanks to ‘astute payroll and operating cost control’.


Bristol hotels also enjoyed a profitable September and year-on-year growth across all key performance indicators, as TRevPAR and GOPPAR increased by 19.8 per cent and 43.4 per cent respectively.

A 5.6 per cent surge in occupancy to 84.8 per cent, combine with ADR growth of 17.6 per cent, boosted RevPAR by 25.9 per cent compared to the same period last year.

Non-room departments also performed well, particularly leisure (up 20.2 per cent) and meeting room hire (up 18.9 per cent) leading to a TRevPAR rise of 19.8 per cent.

DOPPAR also grew 26.9 per cent as payroll dropped by 2.4 per cent. Despite overheads rising by 6.6 per cent, GOPPAR increased by 43.4 per cent to £42.05 in Bristol.

Milton Keynes

In Milton Keynes too, hoteliers recorded a positive September, with TRevPAR and GOPPAR rising by 8.1 per cent and 43.1 per cent respectively.

Occupancy went up 2.8 per cent to 82.1 per cent, while ADR grew 9.5 per cent – resulting in a 13.3 per cent rise in RevPAR.

However, performance was mixed in ancillary departments, leading to limited TRevPAR growth (8.1 per cent). Efficient cost control and reduced payroll (by 0.7 per cent) resulted in a 9.7 per cent DOPPAR increase, and GOPPAR growth of 43.1 per cent to £41.54.

Related News

Sofitel has come out on top of a Which? consumer survey

Sofitel tops UK hotel chains survey

Overnight hotel costs have decreased in London and Glasgow this September

Hotel prices drop in London and Glasgow

Hotels throughout the UK will continue to enjoy growth in the New Year

More growth expected for hotels

The UK hotel industry enjoyed a great year in 2014, with cities like Edinburgh recording strong uplifts in profits

Hotel profits up across UK in 2014

Debbie Taylor, managing director for Manchester and the North West at Macdonald Hotels & Resorts

Debbie Taylor of Macdonald Hotels & Resorts on why there is finally optimism in the regional hotel market

Regional hotels enjoyed 9.2 per cent revenue per available room growth in 2014

Regional hotel growth set to continue in 2015

Hotel chains in the provinces continued to see upward growth in February

Hotel chains outside London continue to perform well

Hotels in the provinces enjoyed strong growth in July, while London properties suffered

North West hotels enjoy profitable July

Macdonald posted operating profits of £14.9m in 2013

Macdonald Hotels operating profits up 7%

Hotels at London's Heathrow airport enjoyed a profit surge last month, according to the latest Hotstats data

Ready for takeoff: Heathrow hotels see profits soar in April

The monthly HotStats survey covers 70 areas of hotel revenue, cost, profit and statistics

Sustained revenue and profit growth for Scottish hotels

North West saw good profit growth last year

North West hotels lead UK profit growth