MARKET ANALYSIS | SCOTLAND
MARKET ANALYSIS : SCOTLAND
COMMENT
Alan Frost , senior manager , Hospitality and Leisure
Four months ago , Mazars wrote about the hotel sector in Scotland and spoke positively about the growth in the main KPI ’ s . We are pleased to see the continued growth in KPI ’ s with occupancy ( up 2.5 %), ARR ( up 4.2 %) and RevPAR ( up 6.7 %) all increasing considerably year on year to May 2017 .
Aberdeen has seen a considerable increase in their occupancy rates ( particularly in the last three to four months ) as the oil industry very slowly shows signs of recovery in North East Scotland . This has undoubtedly contributed to the 2.5 % increase in occupancy rates across the country , though ARR in Aberdeen is still well below its level 12 months ago and understandably will take longer to claw its way back to the levels of 2015 / 6 .
Small increases across all cost centres in the rooms department has affected the value of increased RevPAR that has made its way to the bottom line with departmental profitability for rooms decreasing from 71.5 % to 71.3 % - though
as an absolute figure , there has been a sizeable increase .
Positive growth in both food and beverage RevPAR of 1.8 % and 2.4 % respectively is encouraging and bucks the trend of many other regions in the UK ; and although negative 6.2 % growth in C & B revenue per square metre is worrying for Scotland , it adds more credit to the top line room KPI results .
TRevPAR has increased by £ 5.57 ( 4.6 %) with £ 4.76 of this coming from room revenue improvements , the majority of the balance being from F & B . The ability of hoteliers to keep labour costs as a percentage of TRevPAR consistent at 30.4 % has resulted in a 5.7 % increase in GOPPAR which has grown by £ 2.19 from £ 38.73 to £ 40.92 .
Given there is still much more improvement in Aberdeen to be seen and the pipeline for new high quality in Edinburgh and Glasgow is healthy , there are further reasons to be optimistic about hotel performance in Scotland .
Statistics courtesy of
Hotstats
JUNE 2016 TO MAY 2017 |
|
|
This Year |
Previous 12 Months |
“ YOY Volume Change ” |
|
|
Rooms Department |
|
|
Occupancy |
% |
78.1 |
76.2 |
2.3 % |
Average Room Rate |
£ |
96.6 |
92.8 |
6.5 % |
Rooms Rev . PAR |
£ |
75.48 |
70.72 |
6.5 % |
Rooms Cost of Sales % Rooms Rev |
% |
8.0 |
7.8 |
0.3 % |
Rooms Dept . Profit % Rooms Rev . |
% |
71.3 |
71.5 |
6.2 % |
|
|
Food and Beverage |
|
|
Total Food Rev . POR |
£ |
30.21 |
30.4 |
1.6 % |
Total Beverage Rev . POR |
£ |
15.04 |
15.04 |
2.2 % |
C & B Room Hire Rev . per sq . mtr . |
£ |
299.2 |
318.87 |
-6.1% |
|
|
Total Operation |
|
|
Total Rev . PAR |
£ |
126.7 |
120.6 |
4.4 % |
Total Hotel Labour Costs % Total Rev . |
% |
30.4 |
30.4 |
4.6 % |
Total GOP PAR |
£ |
40.92 |
38.73 |
5.4 % |
18 www . hotelowner . co . uk July 2017