Source: HotStats Limited

Both cities were amongst the best performing markets in March in Europe, achieving impressive year-on-year increases in gross operating profit per available room (GOPPAR) by 70.7% and 25.1% respectively, according to the latest data from HotStats.

With occupancy shooting up by 10.5 percentage points in the Spanish capital and average room rate (ARR) increasing by 1.4%, revenue per available room (RevPAR) grew by a stunning 20.7%. Similar performances were registered in non-rooms departments and total revenue per available room (TRevPAR) rose by 19.5%. Well controlled operating costs and payroll management resulted in departmental operating profit per available room (DOPPAR) surging by 37.8% and GOPPAR by 70.7%.

Warsaw hoteliers experienced a 9.9% surge in RevPAR thanks to a 1.5 percentage point increase in occupancy and a 7.9% growth in ARR, most notably fuelled by a 20.6% increase in the Residential Conference segment rate. Additional revenue per available room from food (+4.0%), beverage (+13.2%) and meeting room hire (+7.1%) enhanced TRevPAR levels by 10.1% to €119.81. A 2.3 percentage point decrease in payroll combined with proficient operating cost control and stable overheads resulted in DOPPAR and GOPPAR jumping by 10.7% and 25.1% respectively.

Mind the gap for Dusseldorf and Moscow

Dusseldorf hoteliers managed to increase RevPAR by 2.2% driven by a 2.3% rise in ARR, while occupancy remained virtually flat. However, this performance was cancelled out by negative movements across all ancillary departments, leading to a 0.8% TRevPAR decrease. With DOPPAR also decreasing by 3.9% because of rising operating costs like travel agents commission per room let (+39.6% to €8.67), and with payroll escalating by 1.1 percentage points, GOPPAR went down by 3.1%.

Different city but same story for Moscow hotels in March; the headline performance was positive thanks to a RevPAR growth of 1.9%, but this metric failed to show the full picture. Indeed, revenue per available room derived from food (-11.2), beverage (-9.1%), meeting room hire (-7.5%) and leisure (-11.6%) decreased, and as a result TRevPAR diminished by 1.9%. A general cost increase underpinned by payroll climbing to 27.2% from 20.5% delivered a GOPPAR drop of 19.7%, producing a profit conversion of 42.5% down from 51.9%.

Paris hit by costs

In March, hotels in the French capital experienced almost flat movements across rooms' department indicators resulting in RevPAR increasing by 0.2%, and with mixed performance in ancillary departments TRevPAR showed a similar movement of 0.2%. But a closer examination of costs revealed direct rooms expenses per room let increasing by 5.2% which led to a DOPPAR deterioration of 0.4%, and with overheads per available room rising by 0.8% driven by administration and general (+4.2%) and property and maintenance (+2.1%), GOPPAR declined by 1.4%.

About HotStats

HotStats provides monthly P&L benchmarking and market insight for the global hotel industry, collecting monthly detailed financial data from more than 8,500 hotels worldwide and over 100 different brands and independent hotels. HotStats provides more than 550 different KPIs covering all operating revenues, payroll, expenses, cost of sales and departmental and total hotel profitability.

HotStats Limited
+44 (0) 20 7892 2241
HotStats Limited