Hotels outside of London see growth for first time in four years

Hotels located outside of the capital city have seen their profits grow for the first time since 2009, according to new figures by marketing firm HotStats.

The report highlighted that hotels in provincial regions had seen a rise in revenue per available room (RevPAR) by 1.8 per cent during the month of February 2013, meaning that gross operating profit per available room (GOPPAR) had also increased by 1.2 per cent. This is the first time a rise has been recorded year-on-year since the start of the recession in 2009.

Industrial experts have suggested that demand from both businesses and leisure areas have helped fill up rooms quickly. This means that there will be more hospitality jobs available in smaller cities and towns, enabling local economies to receive a healthy boost. However, these figures should be taken with caution.

David Bailey, deputy managing director at TRI Hospitality Consulting, concluded: "Whilst trading performance is likely to be turbulent given recent news including the government's revised downward forecast for GDP growth this year and continued inflationary cost pressures, the latest market data highlighting an increase in gross operating profit performance over the 12-month period to February 2013 is positive."

It was not all good news however, as the hotels in the capital city had seen their profits fall for the second consecutive month. Even though room occupancy had risen by 1.4 per cent to 75.9 per cent during February, RevPAR actually remained flat due to the average room rate falling by 1.8 per cent. In total, GOPPAR had declined by 2.7 per cent.

Mr Bailey added: "All eyes will be on the key trading period between May and November when the volume and value of corporate and leisure demand increases significantly to understand how trading performance will fair this year."

The HotStats survey looked at 624 hotels across the UK.

Berkeley Scott is a specialist recruitment agency providing hotel management solutions.

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