Profits at hotels in Vienna and Warsaw were both hit by significant declines in average room rate (ARR) in 2013, according to the latest HotStats.
In 2013, hotels in the Austrian capital saw a decline in all segment rates with falls in BAR (-7.2%), Corporate (-5.5%), Residential conference (-9.8%), Leisure (-4.5%) and Tours/Group (-8.4%) leading to an overall 7.9% drop in ARR. Although occupancy went up by 0.4 percentage point to 71.6%, RevPAR diminished by 7.4% to €93.96.
With ancillary departments also posting a reduction, total revenue per available room (TRevPAR) decreased by 6.3% to €145.20. Despite overheads per available room reducing, rising payroll and operating costs contributed to a 16.8% decline in gross operating profit per available room (GOPPAR).
Unsurprisingly, Warsaw posted a negative year-on-year comparison as its 2012 results were boosted by the 2012 FIFA European Championships. Indeed, despite a 7.1 percentage points surge in Occupancy to 78.6%, hoteliers in the Polish capital recorded a 14.4% drop in ARR to €90.22 leading to a 6.0% decline in RevPAR. A general decrease in non-rooms revenues contributed to a negative year-on year TRevPAR performance (-5.2%). With operating costs also increasing, departmental operating profit per available room (DOPPAR) decreased by 8.2% to €72.64. Although overheads remained flat, payroll rose by 1 percentage point and gross operating profit per available room decreased by 10.2% to €46.65 for 2013.
Budapest and Hamburg post revenue and profit increase in 2013
Budapest hotels registered positive movements in 2013 across all key performance indicators with increases in occupancy (1.0 percentage points) and ARR (2.5%) contributing to a 3.9% rise in RevPAR. With TRevPAR growing by 3.4% and payroll decreasing by 0.4 percentage points, GOPPAR improved by 7.9% to €30.69.
But in December hoteliers in the Hungarian capital experienced a more difficult end to the year with a surge in ARR of 9.2% at the expense of the occupancy, which declined by 4.7 percentage points. Negative year-on-year performances in non-rooms departments cancelled out a 1.0% increase in RevPAR and caused TRevPAR to decline by 4.6%. Falling F&B profit conversion (8.8 percentage points) and rising payroll reduced profit conversion to 22.5% and GOPPAR fell by 7.3% to €17.16.
In 2013, hotels in Hamburg achieved positive performances with a 1.1% decline in ARR being the only exception. With occupancy reaching a high level to 81.5% (+4.2 percentage points), RevPAR and TRevPAR grew respectively by 4.3% and 3.7% whilst hoteliers managed to reduce payroll by 0.6 percentage point. As a result, GOPPAR improved by 5.7% to €54.49.
Dusseldorf: revenue up but profit down…
Dusseldorf grew RevPAR by 1.4% for the year driven by a 2.1 percentage point uplift in occupancy and despite a 1.8% fall in ARR. As beverage per available room rose by 4.4% as well as sales from food and meeting room hire, TRevPAR registered a 1.5% growth to €132.83. However, profit conversion diminished from 36.7% to 35.8% because overheads and payroll increased causing GOPPAR to fall by 0.9% to €47.59.
In December, hoteliers in the German city experienced a tough end to the year. Indeed, despite RevPAR increasing by 1.2%, TrevPAR and GOPPAR reduced by 4.5% and 6.8% respectively compared to the same month in 2012, demonstrating yet again the need to look beyond RevPAR to see the true performance picture.
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