2006 proved a golden year for UK hotels as revenues per available room (revpar) hit peaks not seen since 1997, according to Hotels 2006 UK report from TRI Hospitality Consulting.
Average revpar across the UK rose by 9.1% to £53.87 in 2006.
The most robust growth was seen in London, where hoteliers boosted average revpar by 19% to £93.58.
Regional hotels achieved a more modest growth, led by Scotland’s 6.8% boost in average revpar to £51.56. Hotels in England increased revpar by 6.4% to £44.49 while in Wales revpar grew by 4.4% to £45.01.
The figures are compiled annually by TRI Hospitality Consulting.
The full 2007 report for hotel performance in the UK and Europe costs £350 combined and can be obtained by e-mailing Claire King at TRI..
View the TRI Hotels 2006 UK report here >>
- The figures below present the range of responses from the lower quartile to the upper quartile of the data.
- A quartile is one of three values that divide a set of sorted data into four equal parts. The lower quartile cuts off the lowest 25% of data, the median cuts the data in half, and the upper quartile cuts off the highest 25%, or the lowest 75%.
| UK | 2006 | 2005 |
| Occupancy (%) | 67.6%-79.5% | 66.2%-77.8% |
| Room rate | £53.90-£81.70 | £50.30 - £76 |
| Revpar | £36.44-£64.95 | £33.30–£59.13 |
| Food revenue% | 16.4%-25.4% | 16.6%-25.7% |
| Beverage revenue% | 6.9%-12.7% | 7%-13.1% |
| Payroll% | 26.5%-33.2% | 26.6%-33% |
| IBFC% | 27.8%-44.2% | 30.3%-43.8% |
| LONDON | 2006 | 2005 |
| Occupancy (%) | 79.3%-86.9% | 73.8%-81.7% |
| Room rate | £67.60-£127.80 | £61.60–£115.50 |
| Revpar | £53.61- £111.06 | £45.46-£94.36 |
| Food revenue% | 10%-16.7% | 9.9%–16.9% |
| Beverage revenue% | 3.7%-7.1% | 3.9%-7% |
| Payroll% | 22.1%-27.6% | 22.4%-28.8% |
| IBFC% | 43.3%-53.1% | 41.6%-53.4% |
| ENGLAND | 2006 | 2005 |
| Occupancy (%) | 65.1%-76% | 63.8%-75.9% |
| Room rate | £50.80-£73.70 | £47.70-£70.30 |
| Revpar | £33.07–£56.01 | £30.43-£53.36 |
| Food revenue% | 19%–26.3% | 19.5%–27.1% |
| Beverage revenue% | 7.9%–13.2% | 8.2%–13.6% |
| Payroll% | 28%-33.9% | 27.9%–33.6% |
| IBFC% | 25.7%-39.1% | 28.6%-40.5% |
| WALES | 2006 | 2005 |
| Occupancy (%) | 69.8%-78.2% | 65.1%-78.7% |
| Room rate | £51.90-£75.20 | £46.50-£74.10 |
| Revpar | £36.23-£58.81 | £30.27-£58.32 |
| Food revenue% | 22.4%-25.5% | 21.1%-24.7% |
| Beverage revenue% | 9.7%–13.6% | 9.7%–14.3% |
| Payroll% | 28.9%-32% | 28.6%–33.7 % |
| IBFC% | 29.9%-35% | 27.1%-35.8% |
| SCOTLAND | 2006 | 2005 |
| Occupancy (%) | 68.7%-79.8% | 70.5%-77.8% |
| Room rate | £55.90-£80.50 | £53.30–£76.90 |
| Revpar | £38.40-£64.24 | £37.58-£59.83 |
| Food revenue% | 19.5%-25.5% | 21%-26.5% |
| Beverage revenue% | 7.7%-14.2% | 8.5%-14.9% |
| Payroll% | 28.1%-34.7% | 28.3%–34.1% |
| IBFC% | 27%-38.9% | 29.2%-37.7% |
Definition of terms
Occupancy is that proportion of the bedrooms available during the period which are occupied during the period.
Room rate is the total bedroom revenue for the period divided by the total bedrooms occupied during the period.
Revpar is the total bedroom revenue for the period divided by the total available rooms during the period
Food revenue% is food revenue as a percentage of total revenue
Beverage revenue% is beverage revenue as a percentage of total revenue
Payroll% is the payroll for all hotels in the sample as a percentage of total revenue
IBFC% is the Income Before Fixed Charges as a percentage of total revenue