Of the five European city markets featured, Barcelona, Frankfurt and Prague registered similarly flat revenue per available room (RevPAR) performance in November compared to the same period last year, according to the latest HotStats survey. However, gross operating profit per available room (GOPPAR) performance varied emphasising how misleading RevPAR can be as a KPI.
In November, Barcelona hotels increased occupancy by 2.6 percentage points to 66.0% but at the expense of average room rate (ARR) leading to a flat RevPAR (year-on-year change of 0.1%) to €92.01. Mixed performances were registered in other departments so total revenues per available room (TrevPAR) remained nearly unchanged (-0.2%) to €142.45. However, operating cost control helped to improve departmental operating profit per available room (DOPPAR) by 3.4% to €82.75 and, combined with overheads per available room and payroll decreasing respectively by 4.1% and by 1.3 percentage points, hoteliers made the most of the situation with a notable GOPPAR rise of 8.5% to €51.83.
Hotels in the Czech capital also managed to convert a nearly flat RevPAR movement (0.3%) to €51.46 into a staggering profit enhancement with a rise of 13.0% in GOPPAR to €33.54. Although a general decrease in ancillary revenues led to a 2.5% drop in TrevPAR, hoteliers in Prague adapted to adjust cost of sales and department operating expenses accordingly and improved DOPPAR by 6.2% to €58.23. Overheads per available room diminished and payroll decreasing by 1.6 percentage points contributed to the profit growth.
Frankfurt hoteliers saw RevPAR virtually flat (0.1%) at €100.94 and TrevPAR (0.3%) at €163.50 in November. But unlike Barcelona and Prague hotels, results impacted the profit line with a 3.8% fall in GOPPAR. Despite payroll decreasing by 0.5 percentage points, operating costs slightly increased as well as per available room increases in sales and marketing (+13.5%), property & maintenance (+7.8%) and utilities costs (-8.8%) causing the profit decline.
Berlin and St Petersburg grow revenues and profits
In November, Berlin experienced a 0.8% decline in RevPAR to €93.42 driven by a 1.1 drop in ARR despite a 0.3 percentage point increase in occupancy to 77.8% (1 percentage point above the calendar year performance). However a strong non-rooms revenue growth per available room led most notably by food (+20.4%) and meeting room hire (36.5%) resulted in a 7.2% rise in TrevPAR to €181.81. Food and beverage conversion improved by 4.7 percentage points to 39.5% and DOPPAR by 9.7% to €104.57. Cost control and payroll management helped to achieve an astounding 22.0% increase in GOPPAR to €71.34.
Hoteliers in St Petersburg reported positive year-on-year comparisons across all key performance indicators. Both occupancy and ARR went up and led to a 10.9% increase in RevPAR to €47.43. A general increase in other sources of revenue contributed to an 8.5% uplift in TrevPAR to €80.74. Notwithstanding a 0.4 percentage surge in payroll and an increase in operating costs, overheads per available remained stable and GOPPAR went up by 2.9% to €20.29.
For an inside view of a local or regional market place in the hotel sector, bespoke HotStats reports are available. Terms and conditions apply. Visit www.hotstats.com to view a sample report.
HotStats provides two reporting tools to hoteliers:
Our unique profit and loss benchmarking service which enables monthly comparison of hotels’ performance against their competitors. It is distinguished by the fact that it provides in excess of 100 performance metric comparisons covering 70 areas of hotel revenue, cost, profit and statistics providing far deeper insight into the hotel operation than any other tool.
Our latest innovation in daily revenue intelligence, MORSE. Amongst its reporting are daily and highly granular market segmentation metrics as well as distribution channel and source of booking analysis. It takes daily market intelligence to a whole new level.
For more information contact:
Business Development Manager
+44 (0)207 892 2234
Logos, product and company names mentioned are the property of their respective owners.