“ It’ s fant see Birm now th as a to destin
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| Hospitality Today | Feb / March 2017
Edinburgh Hotels Top the Profit Growth Table in 2016
Hotels in Edinburgh recorded a 12.0 % increase in profit per room in 2016, as hotel managers in the Scottish capital were able to combine an increase in revenues with a reduction in costs.
Profit growth for Edinburgh hotels is once again at the top of the table of key cities in the UK following a mixed profit performance in 2014(+ 4.4 %) and 2015(-0.4 %).
The growth in revenue in the Scottish capital was led by strong room occupancy levels, which remained amongst the highest in the UK in 2016, increasing by 1.4 percentage points to 82.9 % enabling hoteliers to leverage achieved average room rate by 8.4 %, to a record high of £ 114.15.
The growth in the achieved rate in the leisure(+ 13.2 %) as well as corporate(+ 4.6 %) segments suggests Edinburgh remains a key economic and visitor hub. Furthermore, the ongoing success of the Edinburgh Fringe Festival fuelled an 11.6 % increase in RevPAR in August to £ 163.25.
In addition to the growth in revenue in 2016, hotels in Edinburgh recorded a 0.4 percentage point decline in payroll to 27.4 % of total revenue, helping to drive a profit conversion of 38.3 % of total revenue.
Birmingham hotels enjoy best year as tourism booms
Birmingham’ s hotel sector has seen its most successful year in history, with occupancy rates for 2016 peaking at 99 % capacity and averaging at 75 %- both the highest on record.
The figures released last month reveal that both the proportion of international and overnight visitors to the city have doubled in the last three years.
Overnight guests now account for 45 % of all visitors, compared to 21 % in 2013. Whilst the proportion of international visitors has grown from 6 % to 12 %, respectively, with the most visitors travelling from European countries such as France and the Netherlands, as well as from the US.
Balmoral Hotel, Edinburgh
Additionally, the proportion of leisure visitors to the city has also increased- from 45 % in 2013 to 76 % in 2016; demonstrating a significant shift in the type of visitors the city is drawing.
“ It’ s fant see Birm now th as a to destin
Emma Eastwood, revenue manager at Hotel Indigo Birmingham, said:“ It’ s fantastic to see Birmingham now thriving as a tourist destination, and we’ re delighted to be at the heart of that as a city centre hotel. We’ ve just finished our most successful year on record, and with a continuing increase in both overnight and international visits to the city, we’ re already excited for what 2017 will bring.”