HotStats European Chain Hotels Market Review – June 2014
Happy days for Barcelona and Milan
Hotels in Milan increased RevPAR by 2.9% driven by a 2.6 percentage point rise in demand in June. Mixed performances were registered in ancillary departments leading to a TRevPAR growth of 2.0%. A 3.9 percentage point increase in food and beverage profit conversion to 26.3% contributed to the DOPPAR uplift of 2.9%. Despite overheads per available room rising (+1.3%), payroll remained virtually flat and GOPPAR increased by 4.1%, representing a profit conversion of 33.0% for the month of June.
June's blip for Cologne and Dusseldorf
Cologne hoteliers were hit by a major slowdown in June with negative year-on-year comparisons across all key performance indicators. Both occupancy and ARR declined, by 5.4 percentage points and 2.3% respectively, leading to a RevPAR fall of 9.6%. A general decrease in revenue from other departments further impacted TRevPAR levels (-12.6%) and rising operating costs resulted in a DOPPAR reduction of 19.9%. Despite overheads declining, payroll increased by 4.4 percentage points contributing to deliver the GOPPAR drop of 29.0%.
On-going strong performances from Dusseldorf hoteliers since the beginning of the year were halted in June, with the city also experiencing negative year-on-year movements across all key performance indicators. A combined decrease in occupancy (-0.3 percentage points) and ARR (-1.2%) resulted in a RevPAR drop of 1.7%. However, positive movements in non-rooms departments softened the TRevPAR decline of 1.1%. Despite overheads per available room remaining flat, rising operating costs and payroll negatively impacted DOPPAR by 5.7% and GOPPAR by 8.9%.
Flat revenue but profit growth for Warsaw
In June, Warsaw hotels recorded a 1.0 percentage point increase in occupancy which was cancelled out by a drop of 1.3% in ARR, and as a result RevPAR remained almost unchanged (-0.1%). Mixed revenue performances per available room derived from food (+4.6%), beverage (+0.4%) and meeting room hire (-20.3%) maintained TRevPAR at the same level (+0.1%) compared to the same period last year. However, proficient cost control and payroll management generated gains in DOPPAR and GOPPAR by 0.3% and 1.7% respectively.
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