European Chain Hotels Market Review - September 2011
The Amsterdam hotel market continues to grow from strength-to-strength as Gross Operating Profit per Available Room (GOPPAR) increased by 16.7% for the month of September. Over the 12-month period up until September 2011, Amsterdam GOPPAR performance has increased by an astonishing 26.6% according to the latest HotStats survey by TRI Hospitality Consulting.
The latest results from the survey clearly illustrate Amsterdam as one of the high performing European markets. Demand levels were already approaching peak performance when the Dutch capital achieved 88.1% occupancy in September 2010, and with continued high levels of demand achieved this September (87.5% occu- pancy), hoteliers increased average room rate performance by 13.3% to €223.26, resulting in a 12.5% increase in Revenue per Available Room (RevPAR).
“Since the beginning of 2010, the Amsterdam hotel market has experienced continued and robust revenue and profit growth. Closer analysis from our HotStats database indicates that the rise in transient corporate demand levels has allowed Amsterdam hoteliers to increase Best Available Rates (BAR) by 16% over the 12 month period up until September 2011. There has also been double digit growth in conference sector (10.1%) and leisure sector (17.3%) rates which has underpinned RevPAR growth of 15.3% over the 12-month period” said Jonathan Langston, managing director, TRI Hospitality Consulting.
In addition to the increase in transient corporate demand, conference and banqueting revenue performance also increased, albeit marginally. In the 12 months to September 2011 conferencing and banqueting revenue performance has risen by 2.1%. Over the 12-month period, non rooms revenue has also increased by 7.2% and Total Revenue per Available Room (TRevPAR) performance increased by 12.8%.
“The substantial increase in revenue performance has resulted in greater efficiencies in departmental costs and undistributed operating expenses as a percentage of total revenue for Amsterdam hotels. Gross operating profit conversion for the 12 months to September 2010 increased from 36.3% to 40.8% (€77.85) which is now in-line with pre-recession performance. Given the current trend in performance, Amsterdam is likely to exceed pre-recession GOPPAR performance in the next few months” said Langston.
Click here (
Adobe Acrobat PDF file) to download the complete article including graphs.
TRI Hospitality Consulting provides a wide range of services to clients in the hotel sector. It has offices in London, Dubai and Madrid.
For more information contact:
Jonathan Langston, managing director 020 7892 2201
jonathan.langston@trihc.com
David Bailey, deputy managing director 020 7892 2202
david.bailey@trihc.com
Charles Scudamore, director 0207 892 2211
charles.scudamore@trihc.com
Logos, product and company names mentioned are the property of their respective owners.
