Profitability grew by 2.1% among London chain hotels in August 2008 but dropped by 3.7% in the provinces, according to TRI Hospitality Consulting.

London hotels managed to increase profitability in August on the back of  a 5.2% increase in room rate, which offset a marginal decline in occupancy.

“Changes in global financial markets are becoming increasingly volatile and dramatic. Given London’s maximum exposure to such events, hotel performance has remained remarkably steady over recent months, “said David Bailey, deputy managing director at TRI.

“Although down on last year, average rate growth is still ahead of 2005 and2006 levels.”

Regional hotels were hit by a 1.5 percentage point fall in occupancy and a rise of just 0.5% in room rate . However, Liverpool’s menu of Capital of Culture events helped the city’s hotels boost occupancy levels by 7%.

“Even in August business demand remains crucial for branded chain hotels, which reported a significant year-on-year reduction in corporate and conference room lets,” commented Bailey.

“With British families taking fewer short breaks too, leisure demand was never going to compensate for the revenue shortfall.”

The chain hotels survey is compiled each month by Tri Hospitality Consulting.


Annual HotStats hotel performance data

TRI Hotels 2007 UK >>

TRI HotStats: annual UK hotel figures >>

TRI HotStats: Hotels 2007 Europe >>


 

 

AUGUST 2008  UK TOTAL    2008 2007 Movement Occupancy 76.6% 77.8% -1.2 points Room rate £83.60 £81.19 +3% Revpar £64 £63.15 +1.3% IBFCpar £35.85  £36.15 -0.8% Payroll%  31.1% 31% +0.1 point LONDON       2008 2007 Movement Occupancy 84.8% 85.5% -0.8% Room rate £105.89 £100.67 +5.2% Revpar £89.75 £86.10 +4.2% IBFCpar £49.69 £48.67 +2.1% Payroll%  27.9% 27.8% +0.1 points  PROVINCES 2008 2007 Movement Occupancy 72.2% 73.7% -1.5 points Room rate £69.55 £69.23 +0.5% Revpar £50.19 £51.01 -1.6% IBFCpar  £28.42 £29.52 -3.7% Payroll%  33.2% 33% +0.2 points

JULY 2008  UK TOTAL    2008 2007 Movement Occupancy 80.2% 81.1% -0.8 points Room rate £95.94 £88.36 +8.6% Room revpar £76.97 £71.64 +7.4% IBFCpar £51.72 £47.85 +8.1% Payroll%  26.8% 27.6% -0.9 points LONDON       2008 2007 Movement Occupancy 88.4% 88.2% +0.3 points Room rate £131.27  £114 +15.2% Revpar £116.09 £100.51 +15.5% IBFCpar £80.27 £66.99 +19.8% Payroll%  22.1% 23.9% -1.9 points PROVINCES 2008 2007 Movement Occupancy 75.8% 77.2% -1.4 points Room rate £73.62 £72.45 +1.6% Revpar £55.79 £55.95 -0.3% IBFCpar  £36.26 £37.45 -3.2% Payroll%  30.6% 30.3% +0.3 points

JUNE 2008  UK TOTAL    2008 2007 Movement Occupancy 78.4% 80.3% -1.9 points Room rate £95.03 £91.50 +3.9% Revpar £74.49 £73.44 1.4% IBFCpar £52.64 £54.03 -2.6% Payroll%  26.4% 25.9% +0.5 points LONDON       2008 2007 Movement Occupancy 85.5% 87% -1.5 points Room rate £126.49 £119.70 +5.7% Revpar £108.17 £104.11 +3.9% IBFCpar £76.95 £75.46 +2% Payroll%  22.2% 22.2% 0 points  PROVINCES 2008 2007 Movement Occupancy 74.6% 76.7% -2.1 points Room rate £75.82 £74.47 +1.8% Revpar £56.54 £57.11 -1% IBFCpar  £39.69 £42.62 -6.9% Payroll%  29.6% 28.6% +1 point

MAY 2008  UK TOTAL    2008 2007 Movement Occupancy 76.7% 76.7% 0 points Room rate £89.73 £87.68 +2.3% Revpar £68.84  £67.27 +2.3% IBFCpar £46.27 £46.99  -1.5% Payroll%  28.1% 27% +1.1 points LONDON       2008 2007 Movement Occupancy 82.9% 81.6% +1.4 points Room rate £117.95  £113.79  +3.7% Revpar £97.82 £92.82 +5.4% IBFCpar £65.95 £64.65  +2% Payroll%  24.7% 23.2% +1.5 points  PROVINCES 2008 2007 Movement Occupancy 73.5%  74.2% -0.7 points Room rate £73.38 £73.03 +0.5% Revpar £53.95 £54.21 -0.5% IBFCpar  £36.16  £37.96 -4.7% Payroll%  30.5% 29.5% +1 point

 

APRIL 2008  UK TOTAL    2008 2007 Movement Occupancy 76.8% 72% +4.8 points Room rate £90.39 £84.53  +6.9% Revpar £69.42 £60.88  +14% IBFCpar £44.74  £35.45  +26.2% Payroll%  28.6% 31.3% -2.7 points LONDON       2008 2007 Movement Occupancy 83% 78.8% +4.2 points Room rate £118.16  £107.33  +10.1% Revpar £98.10 £84.62 +15.9% IBFCpar £65.62 £51.78  +26.7% Payroll%  24.9% 27.3% -2.4 points PROVINCES 2008 2007 Movement Occupancy 73.6%  68.4% +5.1 points Room rate £74.05 £70.76 +4.6% Revpar £54.47 £48.43 +12.5% IBFCpar  £33.86  £26.90 +25.9% Payroll%  31.3% 34% -2.7points

 

MARCH 2008  UK TOTAL    2008 2007 Movement Occupancy 72.3% 74.5% -2.2 points Room rate £86.32 £86.55  -0.3% Revpar £62.43  £64.51  -3.2% IBFCpar £38.97  £44.89  -13.2% Payroll%  30% 28.2%  +1.7 points LONDON       2008 2007 Movement Occupancy 80.5% 81.2% -0.7 points Room rate £109.71  £108.88  +0.8% Revpar £88.27 £88.36 -0.1% IBFCpar £57.69 £62.21  -7.3% Payroll%  26.1% 25%  +1.1 points  PROVINCES 2008 2007 Movement Occupancy 68%   71% -3 points Room rate £71.56 £72.82 -1.7% Revpar £48.65 £51.68 -5.9% IBFCpar  £28.99  £35.57 -18.5% Payroll%  32.8% 30.5% +2.3 points

FEBRUARY2008  UK TOTAL    2008 2007 Movement Occupancy 72.1% 72.1% 0 points Room rate £88.23  £84.21 +4.8% Revpar £63.60  £60.75  +4.7% IBFCpar £38.17  £35.65  +7.1% Payroll%  30.5%  30.7% -0.2 points  LONDON       2008 2007 Movement Occupancy 78.5% 77.9% +0.6 points Room rate £114.54 £107.05  +7% Revpar £89.89 £83.34 +7.9% IBFCpar £57.74  £51.68 +11.7% Payroll%  26.5% 26.8% -0.3 points  PROVINCES 2008 2007 Movement Occupancy 68.8%  69.2% -0.4 points Room rate £72.74 £70.97 +2.5% Revpar £50.04 £49.10 +1.9% IBFCpar  £28.08  £27.39 +2.5% Payroll%  33.4% 33.3% +0.1 points

JANUARY 2008  UK TOTAL    2008 2007 Movement Occupancy 63.6% 64.1%   -0.5 points Room rate £87.19 £83.32  +4.6% Revpar £55.46  £53.40  +3.9% IBFCpar £28.97  £28.35  +2.2% Payroll%  33.6%  33.7%  -0.1 points  LONDON       2008 2007 Movement Occupancy 72.6% 72.6% 0 points Room rate £111.02 £104.28  +6.5% Revpar £80.56 £75.66 +6.5% IBFCpar £47.97  £45.72  +4.9% Payroll%  28.4% 28.9%  -0.4 points  PROVINCES 2008 2007 Movement Occupancy 59%   59.6% -0.6 points Room rate £72.04 £69.84 +3.1% Revpar £42.50 £41.63 -0.1% IBFCpar  £19.14  £19.16 -1.4% Payroll%  37.3% 37.2% +0.2 points

DECEMBER 2007

UK TOTAL	2007	2006	Movement
Occupancy	66.6%	66.4%	+0.3 points
Room rate	£88.05	£82.16	+7.2%
Revpar	£58.68	£54.53	+7.6%
IBFCpar	£42.35	£40.62	+4.3%
Payroll%	29.1%	28.9%	+0.2 points

LONDON	2007	2006	Movement
Occupancy	75.1%	74.7%	+0.4 points
Room rate	£113.78	£104.28	+9.1%
Revpar	£85.45	£77.93	+9.6%
IBFCpar	£60.99	£55.83	+9.2
Payroll%	25.4%	26.4%	-1 point

PROVINCES	2007	2006	Movement
Occupancy	61.7%	61.6%	+0.1 points
Room rate	£69.82	£66.85	+4.4%
Revpar	£43.09	£41.19	+4.6%
IBFCpar	£31.49	£31.94	-1.4%
Payroll%	31.8%	30.5%	+1.3 points

NOVEMBER 2007

UK TOTAL	2007	2006	Movement
Occupancy	77.5 %	78.2 %	-0.8 points
Room rate	£95.03	£88.51	+7.4%
Revpar	£73.61	£69.23	+6.3%

LONDON	2007	2006	Movement
Occupancy	85.7 %	86.2%	-0.5 points
Room rate	£125.85	£115.60	+8.9%
Revpar	£107.80	£99.63	+8.2%

PROVINCES	2007	2006	Movement
Occupancy	72.9%	73.9%	-1.1 points
Room rate	£74.82	£71.60	+4.5%
Revpar	£54.53	£52.95	+3%

 

OCTOBER 2007

UK TOTAL	2007	2006	Movement
Occupancy	80.5 %	78.9%	+1.6 points
Room rate	£93.31	£85.91	+8.6%
Revpar	£75.11	£67.82	+10.8%

LONDON	2007	2006	Movement
Occupancy	87.3%	83.7%	+3.6 points
Room rate	£122.42	£110.08	+11.2%
Revpar	£106.87	£92.09	16%

PROVINCES	2007	2006	Movement
Occupancy	76.7%	76.3%	+0.4 points
Room rate	£75.10	£71.15	+5.5%
Revpar	£57.63	£54.29	+6.2%

 

SEPTEMBER 2007

UK TOTAL	2007	2006	Movement
Occupancy	81.5%	82%	-0.5 points
Room rate	£94.43	£86.22	+8.4%
Revpar	£76.17	£70.72	+7.7%

LONDON	2007	2006	Movement
Occupancy	87.1%	86.7%	+0.5 points
Room rate	£119.53	£109.32	+9.3%
Revpar	£104.16	£94.73	+10%

PROVINCES	2007	2006	Movement
Occupancy	78.3%	79.5%	-1.2 points
Room rate	£76.53	£72.40	+5.7%
Revpar	£59.90	£57.55	+4.1%

Source: TRI Hospitality Consulting

The UK Chain Hotels sample is composed of up to 530 hotels with an average hotel size of 166 bedrooms. These hotels operate primarily in the three- and four-star sectors.

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.
• Room revpar is the total bedroom revenue for the period divided by the total available rooms during the period
• Payroll% is the payroll as a percentage of total revenue
• IBFCpar is the income before fixed charges divided by the total available rooms