Weakening room rates and soaring food costs undercut the profitability of UK chain hotels during May 2008, according to TRI Hospitality Consulting.

Although average occupancy remained unchanged and average room rate increased by 2.3%, overall income before fixed charges per available room (IBFCpar) dropped by 1.5%.

As room rates account for less than two-thirds of the total sales of a full-service hotel, the rising cost of sales of food and beverage and other non-rooms departments brought total sales growth as low as 1.8%.

London hotels fared best, increasing occupancy by 1.4 percentage points to 82.9% and profitability by two percent. However, a 3.7% increase in room rate compared badly with growth of 10.7% and 6.9% in May 2007 and 2006.

Profitability slumped more steeply in the provinces (by 4.7%) thanks to a 0.7 percentage point fall in occupancy and a marginal, 0.5% rise in room rate. Rates increased by 2.7% and 3.6% during May in the preceding two years.

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 >>

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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%

AUGUST 2007

UK TOTAL	2007	2006	Movement
Occupancy	77.9%	78.2%	-0.3 points
Room rate	£80	£75.41	+6.1%
Revpar	£62.30	£58.97	+5.7%

LONDON	2007	2006	Movement
Occupancy	85.6%	85.4%	+0.2 points
Room rate	£98.91	£91.46	+8.1%
Revpar	£84.67	£78.15	+8.3%

PROVINCES	2007	2006	Movement
Occupancy	73.8%	74.5%	-0.7 points
Room rate	£68.32	£65.99	+3.5%
Revpar	£50.40	£49.15	+2.5%

JULY 2007

UK TOTAL	2007	2006	Movement
Occupancy	80.8%	80.6%	+0.2 points
Room rate	£87.22	£84.92	+2.7%
Revpar	£70.48	£68.48	+2.9%

LONDON	2007	2006	Movement
Occupancy	88.5%	89.6%	-1.1 points
Room rate	£112.57	£110.21	+2.1%
Revpar	£99.59	£98.70	+0.9%

PROVINCES	2007	2006	Movement
Occupancy	76.7%	76%	+0.7 points
Room rate	£71.44	£69.24	+3.2%
Revpar	£54.78	£52.60	+4.2%

JUNE 2007

UK TOTAL	2007	2006	Movement
Occupancy	79.9%	78.4%	+1.5 points
Room rate	£90.73	£84.11	+7.9%
Revpar	£72.46	£65.91	+9.9%

LONDON	2007	2006	Movement
Occupancy	87.2%	86.4%	+0.9 points
Room rate	£118.20	£105.84	+11.7%
Revpar	£103.12	£91.43	+12.8%

PROVINCES	2007	2006	Movement
Occupancy	75.8%	74%	+1.8 points
Room rate	£73.26	£70.46	+4%
Revpar	£55.53	£52.16	+6.4%

 

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.
• 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