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Rate growth drives profits for North West hoteliers

August saw rates rise in the North West and York, but a sharp fall for Heathrow hotels, according to HotStats

A 5.5 per cent increase in room rate at hotels in the North West was responsible for fuelling a 3.5 per cent year-on-year profit increase in the region, according to the latest data from HotStats.  

Room rates hit £75.84, up from £71.85 in August 2015, despite occupancy remaining static at 79.7 per cent.

August is typically one of the most operationally challenging months of the year due to a marked decrease in commercial demand, but hotels in the North West were able to leverage price due to strong volume, as they have done for most of the year.  

Profit per room at hotels at Heathrow fell by 11.2 per cent this month as the airport recorded a year-on-year increase in passenger numbers of less than 0.1 per cent. 

While hotels at Heathrow achieved a 2.8 per cent increase in achieved average room rate, to £68.59, it was not sufficient to offset the 5.8 percentage point decline in occupancy, as the proportion of demand attributed to the leisure and corporate segments declined. 

As one of the UK’s most popular tourist destinations, August is always a key month for York’s hoteliers and this year proved to be a strong period of operation.

Hotels helped to alleviate the memories of plummeting performance following the winter floods by achieving a 4.2 percentage point increase in occupancy to 88.2 per cent, in addition to a 10 per cent increase in room rate to £104.46.

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