HotStats Europe & MENA report: Scotland's cities among UK's top performers

HotStats has released its 2014 UK, Europe & MENA Hotel Industry Report with interesting insights on the UK hotel industry's profit and loss performance with individual commentary on London, England, Scotland and Wales, as well as on 12 key European and Middle Eastern hotel markets. (These include Brussels, Berlin, Cairo, Dubai, Dublin, Doha, Istanbul, Jeddah, Madrid, Moscow, Paris and Prague.) 
 
The document details results for the full year in 2013 and gives a comparison with 2012 performance. City samples—with the exception of London—include only four- and five-star city-center hotels. 
 
Key insights include:
 
London – Despite recording growth in top line performance, a 2.1 percent decline in profit per available room provides evidence that a rising cost base is creating a more challenging trading environment.
 
Scotland – Primary hotel markets in Scotland provide evidence of the strength of the regional economy, with Aberdeen and Edinburgh among the top performers in the UK.

In November, HotStats reported that hoteliers in Scotland saw a 6.3 percent increase in total RevPAR and a 6.5 percent rise in gross operating profit per available room, representing 14 consecutive months of year-on-year increases. A simultaneous rise in occupancy of 3 percentage points and in average room rate of 1.3 percent helped to increase revenue per available room by 5.5 percent to £57.65. 

Efficient operational cost control enhanced departmental operating profit per available room by 6.8 percent to £54.62 and this, coupled with a significant drop in overheads per available room by 7.0 percent and a minor increase 0.3 percentage point in payroll produced a GOPPAR surge of 6.5 percent to £27.30.
 
Berlin – Despite hotels achieving revenue growth across all departments, the increase in revenue has been outpaced by rising costs and payroll levels, which have led to a 6.7 percent decline in profit per room.
 
Cairo – The ongoing political instability directly impacted Egypt’s tourism industry and caused a considerable decline in top line revenues at Cairo’s four and five star hotel market.
 
Dublin – The extension of the nine percent sales tax on hospitality operations, as well as ‘The Gathering Ireland 2013’ marketing campaign, helped the Dublin hotel market to carry the outstanding performance of 2012 into 2013. (The latest European city hotel survey from PricewaterhouseCoopers ranked Dublin as top performer for 2013 in terms of RevPAR with 11.2 percent growth.) 
 
Jeddah – The city was one of the top performing Middle Eastern hotel markets in 2013 as it continued to reinforce its reputation as the premier leisure destination of Saudi Arabia.
 
Madrid – Hotels continued to suffer declines across all KPIs in 2013, as the Spanish capital was once again exposed by its poor leisure profile and a further drop in national productivity.
 
Paris – Demand and supply economics are once again the drivers of outstanding headline performance for hotels in Paris, which achieved growth across all KPIs in 2013, including an 11.6 percent increase in profit per room.

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