European Chain Hotels Market Review - September 2012
September is typically a strong month of headline performance levels for hotels across the primary European hotel markets and 2012 was no exception with eight of the ten markets polled this month recording room occupancy levels in excess of 85%, according to the latest HotStats survey by TRI Hospitality Consulting.
Volume levels were particularly strong this September for hotels in Amsterdam (88%), Berlin (88.1%), Dublin (93.7%), London (90.2%), Moscow (85.5%), Paris (88.3%), Vienna (88%) and Zurich (90.8%).
Aside from room occupancy, huge average rooms rates were achieved in a number of markets with both Amsterdam (€204.09) and Zurich (€203.65) exceeding the typically stalwart London (€197.30).
But, once again, it was Paris which superseded the performance of all its peers with an achieved average room rate of €242.18, approximately 17 per cent above the 12-month rolling average for the French capital, as the city benefited from strong demand from both the corporate, conference and leisure sectors.
However, a strong ancillary spend in Zurich, which included food (€73.42), beverage (€13.91) and meeting room hire (€18.71) revenue per available room, in addition to a premium rooms revenue per available room (€184.85), enabled Switzerland’s largest city to achieve the highest TrevPAR (Total Revenue per Available Room) of all the cities polled, at €302.98, approximately 25% above the 12-month rolling total.
“September performance typically gives hoteliers across Europe a good opportunity to blow out the cobwebs of a long summer and hotels in London did not show any signs of an Olympic hangover. London hotels achieved a profit conversion of 52% of total revenue, which was the highest in Europe,” said Jonathan Langston, managing director at TRI Hospitality Consulting.
Whilst a number of the top performers in September suffered a decline in profit per room, including Amsterdam (- 12.5%), Milan (-1.6%) and Moscow (-1.1%), the GOPPAR (Gross Operating Profit per Available Room) levels achieved in these markets were an average of 80% higher than the year-to-date average for the individual cities.
In Milan, strong demand levels from the annual Fashion Week were supplemented this September by demand created by the Italian Formula One Grand Prix and events at the Milano Congressi, which included the Euretina and ESCRS medical conferences. As a result, profit levels were approximately 150% above the rolling 12-month average for the city.
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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
David Bailey, deputy managing director 020 7892 2202
Charles Scudamore, director 0207 892 2211
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