Hoteliers in Berlin saw profits per available room increase by 25% in July this year which was solely attributable to non-rooms revenues and effective overhead cost management, according to the latest HotStats survey.
Occupancy and Average Room Rate (ARR) both decreased marginally in July resulting in a slight fall in RevPar of 1% to €78.80. Meeting room revenue, however, increased by over 140%, equivalent to an additional €5.58 per available room, and consequently was the main driver of Total Revenue (TrevPar) growth of 9.6%. Other revenue drivers were food and beverage, with growth in this department improving departmental payroll efficiency by an impressive 12 percentage points and ultimately more than tripling food and beverage departmental operating profit per available room to €10.40 when compared to July last year.
Total administrative and general costs in the German capital’s hotels was reduced by 8.8% per available room which combined with the above, drove a gross operating profit growth of €7.65 per available room – an increase of 25% over July last year.
After two months of double digit year-on-year profit growth in Moscow, hoteliers saw their GOPPAR decrease in July. Despite a 6.1% increase in Average Room Rate to €133.83 and a stable occupancy at 6 percentage points above the rolling twelve months’ average, GOP per available room decreased by 10.4%. Whilst Total Revenues climbed to €158.65 per available room, representing a year-on-year increase of 5.9%, this remains more than €14 below the average for the calendar year. As direct expenses, payroll cost and overheads combined rose by more than the growth in TrevPar, any joy hotelier’s had from a positive RevPar performance quickly evaporated.
Despite the economic uncertainties in Spain, hoteliers in Barcelona have every reason to be in a good cheer. Under the July sun, profits in Barcelona flourished (+19.4%) mainly thanks to a year-on-year increase in ARR of approximately €7.40 to €171.79 and improved F&B (+13%) and C&B revenues (+71.5%). As rooms payroll per room let was 9.7% below July 2012 levels, rising travel agents commission was counterbalanced and rooms departmental operating profit conversion consequently improved by 2.2 percentage points. A boost in C&B productivity (+71.5% meeting room hire per square metre) as well as decreasing cost of sales in the F&B department helped to deliver a gross operating profit per available room increase of €16.54 above last year in the Catalan city.
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