HotStats report UK hotel rates down 11 per cent in April

Hotels in the UK saw an 11 per cent year-on-year decrease in average room rate to £102.35 in April.

And there was also a 1.6 per cent year-on-year drop in room occupancy to 75.9 per cent during the month, according to the latest data tracking full-service hotels from HotStats.

Hotels in the UK suffered their largest margin of year-on-year profit decline since late 2016, as ancillary revenues fell and costs soared in April,.

The 10 per cent year-on-year decline in GOPPAR (gross operating profit per available room) to £43.22 was far greater than the 1 per cent decrease in RevPAR (revenue per available room), which came in at £87.39 for the month.

Revenue declines were felt across all departments, including declines in food and beverage (down 6.4 per cent) and conference and banqueting (down 14.2 per cent) revenue.

“Whether or not unfinished Brexit is to blame, the hope is that the profit deflation this month is an exaggerated blip due to the timing of Easter, rather than something more ominous,” said Michael Grove, director of intelligence and customer solutions, EMEA, at HotStats.

The leisure-led Stratford-upon-Avon hotel market was one location to benefit from the timing of Easter, as events in key visitor attractions across the town, including the RSC Theatre and Guildhall, helped fuel a 10.3 per cent increase in RevPAR to £64.30, as the recovery in the market in 2019 continues apace.

Occupancy was at 75.2 per cent, up from 70.1 per cent year on year, while the average room rate was up 2.6 per cent on 2018 at £84.42.

In contrast to the wider UK, it was a positive month of performance for hotels in Reading, with a 4.2-percent increase in RevPAR to £62.08, contributing to a 16.4 per cent increase in profit per room.

The increase in profit was supported by an eighth consecutive month of ARR growth to £89.69, and a sixth consecutive month of room occupancy growth to 69.2 per cent.