Hotel Owner Hotel Owner July 2017 digital - Page 18

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 as an absolute figure, there has been a sizeable increase. Positive growth in both food and beverage RevPAR KPI’s. We are pleased to see the continued growth in KPI’s of 1.8% and 2.4% respectively is encouraging and bucks with occupancy (up 2.5%), ARR (up 4.2%) and RevPAR (up the trend of many other regions in the UK; and although 6.7%) all increasing considerably year on year to May 2017. negative 6.2% growth in C&B revenue per square metre is 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 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 North East Scotland. This has undoubtedly contributed to this coming from room revenue improvements, the majority the 2.5% increase in occupancy rates across the country, of the balance being from F&B. The ability of hoteliers to though ARR in Aberdeen is still well below its level 12 months keep labour costs as a percentage of TRevPAR consistent at ago and understandably will take longer to claw its way back 30.4% has resulted in a 5.7% increase in GOPPAR which has to the levels of 2015/6. grown by £2.19 from £38.73 to £40.92. Small increases across all cost centres in the rooms Given there is still much more improvement in Aberdeen department has affected the value of increased RevPAR to be seen and the pipeline for new high quality in Edinburgh that has made its way to the bottom line with departmental and Glasgow is healthy, there are further reasons to be profitability for rooms decreasing from 71.5% to 71.3% - though 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 BBH B\\ ٚ] H\]H BH KBBH KBBBH BBBBBQ[]\YBBHBB[]ԂBBpB BBBL BBLKB[]\YH]ԂBpBMK BBLMK BBLBɐH\H]\K]H BBNKBBBN BBBMIBBBBBU[\][ۂBBBB[]TBBpBLBBLL BBM B[[X\ H[]BBB BBB BBB B[TBBpB LBBL BBMK BN˚[ۙ\˝Z’[H M