HotStats European Chain Hotels Market Review – July 2013
Food and Beverage profits tripled in Berlin and enhanced GOPPAR performance
Hoteliers in Berlin saw profits per available room increase by 25% in July this year which was solely attributable to non-rooms revenues and effective overhead cost management, according to the latest HotStats survey. Occupancy and Average Room Rate (ARR) both decreased marginally in July resulting in a slight fall in RevPar of 1% to €78.80. Meeting room revenue, however, increased by over 140%, equivalent to an additional €5.
Total administrative and general costs in the German capital's hotels was reduced by 8.8% per available room which combined with the above, drove a gross operating profit growth of €7.65 per available room – an increase of 25% over July last year.
After two months of double digit year-on-year profit growth in Moscow, hoteliers saw their GOPPAR decrease in July. Despite a 6.1% increase in Average Room Rate to €133.83 and a stable occupancy at 6 percentage points above the rolling twelve months' average, GOP per available room decreased by 10.4%. Whilst Total Revenues climbed to €158.65 per available room, representing a year-on-year increase of 5.9%, this remains more than €14 below the average for the calendar year. As direct expenses, payroll cost and overheads combined rose by more than the growth in TrevPar, any joy hotelier's had from a positive RevPar performance quickly evaporated.
Despite the economic uncertainties in Spain, hoteliers in Barcelona have every reason to be in a good cheer. Under the July sun, profits in Barcelona flourished (+19.4%) mainly thanks to a year-on-year increase in ARR of approximately €7.40 to €171.79 and improved F&B (+13%) and C&B revenues (+71.5%). As rooms payroll per room let was 9.7% below July 2012 levels, rising travel agents commission was counterbalanced and rooms departmental operating profit conversion consequently improved by 2.2 percentage points. A boost in C&B productivity (+71.5% meeting room hire per square metre) as well as decreasing cost of sales in the F&B department helped to deliver a gross operating profit per available room increase of €16.54 above last year in the Catalan city.
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