HotStats European Chain Hotels Market Review – April 2014
RevPAR flatters to deceive in Budapest and Vienna
Both Budapest and Vienna registered revenue per available room (RevPAR) growth in April but failed to convert these gains to the bottom line with gross operating profit per available room (GOPPAR) showing year-on-year negative movements of 1.9% and by 1.2% respectively, according to the latest data from HotStats.
In April, hotels in the Austrian capital boosted occupancy by 2.8 percentage points at the expense of ARR (-1.3%), leading to a 2.9% uplift in RevPAR. But hoteliers in Vienna also experienced disappointment despite the RevPAR growth. Indeed, a general decrease in ancillary revenues resulted in TRevPAR going down by 2.6% and DOPPAR also declined by 0.7%. Despite overheads and payroll diminishing, it was not enough to save the overall performance with GOPPAR dropping by 1.2% to €26.54.
Bleak picture for Berlin and Hamburg
Berlin hotels achieved negative year-on-year comparisons across all key performance indicators for the month of April. A decrease in both occupancy and ARR by 8.1 percentage points and 11.8% respectively produced a 20.8% decrease in RevPAR. Similar movements in non-rooms revenues exacerbated the poor performance and TRevPAR decreased by 25.4%. With rising operating costs and payroll, GOPPAR achieved was 56.4% lower compared to the same period last year, despite overheads per available room being reduced by 9.1%.
In April, Hamburg also suffered from a decline in GOPPAR (-6.2%) but for different reasons. Hoteliers managed slight increases in both occupancy (+0.4 percentage points) and ARR (+0.3%) to deliver a 0.8% growth in RevPAR. But revenues per available room derived from food (-9.2%), beverage (-6.6%), meeting room hire (-40.8%) and leisure (-4.1%) cancelled out the rooms' performance. As a result, TRevPAR decreased by 3.4% and DOPPAR declined by 3.2%. Despite efficient payroll management (-1.3 percentage points), overheads per available room surged by 2.3% and thereby contributed to the profit decline.
RevPAR up but GOPPAR down for Dublin
In April, Dublin hotels registered a 0.6% RevPAR increase only driven by ARR, as occupancy remained flat at a nevertheless healthy 82.0% compared to the same period last year. But mixed performance in ancillary departments negated this gain and TRevPAR went down by 0.3%. In the meantime, DOPPAR decreased by 5.1% mostly due to food and beverage conversion profit falling by 4.8 percentage points to 23.0%. Despite overheads per available room declining, payroll surged by 0.6 percentage points leading to a GOPPAR decline of 7.3%.
Phone: +44 (0) 20 7892 2241
Terms and conditions apply. Visit www.hotstats.com to view a sample report. If you are missing your regular feed of UK, London and Region-wide performance data this is available as an annual subscription service for only £25/month plus VAT. Contact Enquiries, +44 (0) 20 7892 2241 or email@example.com for more details. Our unique profit and loss benchmarking service enables monthly comparison of hotels" performance against a competitive set. It is distinguished by the fact that it provides in excess of 100 performance metrics covering 70 hotel performance, revenue, cost and profit statistics providing the deepest insight available into hotel operations. ©HotStats Limited 2015. Unless otherwise attributed, all material in this press release is the copyright of HotStats Limited.