financehotelowner.co.uk··1 min·For: Owner, GM, Revenue, Ops
Rising Utility Bills Squeeze UK Hotel Margins
Despite solid room rate and RevPAR gains during the summer heatwave, soaring air conditioning costs eroded UK hotel profit margins in July. Hoteliers are warned that raising room rates alone is no longer sufficient to offset persistent operational cost pressures.
Key Takeaways
- 1UK utility costs per occupied room rose to £9.15 nationwide and hit £10.10 in London.
- 2Gross operating profit margins dropped to 43% across the UK and to 47.7% in London.
- 3RevPAR increased to £155.89 nationally as ADR growth outpaced a minor drop in occupancy.
Source: hotelowner.co.uk
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