European Hotels Grow GOPPAR for First Time in 2019
Hotels in mainland Europe recorded their first year-on-year increase in profit per room in May, powered by growth across all revenue centres, according to the latest data tracking hotels from HotStats.
The growth in profit was led by a 3.7% YOY increase in RevPAR, which hit €133.46 thanks to a 2.3% increase in achieved average room rate to €174.22, as well as the first YOY increase in room occupancy in the region since Q3 2018.
This was supported by an increase in ancillary revenues, which included an uplift in Food & Beverage (up 4.5%) and Leisure (up 13.5 %) revenue, on a per-available-room basis.
As a result, TRevPAR at hotels in mainland Europe increased by 3.3% to €195.61 this month, which was 24.2% above the year-to-date figure.
The only challenge to performance was a 0.9% YOY increase in payroll to €59.42 per available room.
Profit & Loss Key Performance Indicators - Mainland Europe (in EUR)
"HOTELIERS IN MAINLAND EUROPE WILL BE HOPING THAT THE GROWTH THIS MONTH KICKSTARTS THEIR PROFIT RECOVERY. HOWEVER, THEY WILL HAVE TO PUT THE PEDAL TO METAL TO RECOUP THE LOSSES SUFFERED SO FAR IN 2019 AND RECORD A THIRD CONSECUTIVE YEAR OF PROFIT GROWTH." — MICHAEL GROVE, DIRECTOR OF HOTEL INTELLIGENCE, EMEA, HOTSTATS.
t was a strong month of trading for hotels in Madrid as the Wanda Metropolitano Stadium hosted the 2019 Champions League Final between Liverpool and Tottenham Hotspur.
An estimated 150,000 English football fans travelled to Madrid, fuelling a 15.9% YOY increase in RevPAR, which was driven by a 12.9% increase in achieved average room rate to €188.62, the highest level since June 2017.
Despite underwhelming ancillary revenue growth, recorded at just 3.0% to €65.35, hotels in the Spanish capital recorded an 11.8% YOY increase in TRevPAR to €222.90, which contributed to the 22.4% increase in GOPPAR to €101.18.
Profit conversion at hotels in Madrid was recorded at 45.4% of total revenue this month.
Profit & Loss Key Performance Indicators - Madrid (EUR)
For the host city of last year's finals, Kiev, this month was a very different picture, with GOPPAR plummeting by 56.4% YOY to €39.31.
Although hotels in the Ukraine capital were able to achieve a 7.8-percentage-point increase in room occupancy to 58.0%, it was at the expense of a 54.5% decrease in achieved average room rate, which fell to €97.18.
As a result, RevPAR fell by 47.5% to €56.33. Falling ancillary revenues completed a fairly disappointing, but ultimately expected, set of trading result for hotels in Kiev.
And despite a 12.0% saving in payroll per available room to €15.71, profit levels plunged by more than €50.
HotStats provides a unique profit-and-loss benchmarking service to hoteliers from across the globe that enables monthly comparison of hotels' performance against competitors. It is distinguished by the fact that it maintains in excess of 500 key performance metrics covering 70 areas of hotel revenue, cost, profit and statistics, providing far deeper insight into the hotel operation than any other tool. The HotStats database totals millions of hotel rooms worldwide. For more information, visit www.hotstats.com.