Gross Operating Profit per available room (GOPPAR) at hotels in Amsterdam and Milan surged by 6.2% and by 44.6% respectively in January, according to the latest HotStats.
The beginning of year saw hotels in the Dutch capital post a 1.4% decline in average room rate (ARR) to €150.60, paired with occupancy growth of 2.2 percentage points to 60.0%; RevPAR rose by 2.4% to €90.37 compared to the same period last year. Despite declines in non-rooms revenues, which led to a 5.3% decrease in TRevPAR to €133.91, departmental operating profit per available room (DOPPAR) remained stable and with payroll and overheads per available room decreasing, GOPPAR went up by 6.2% to €22.00.
In January hoteliers in Milan posted positive year-on-year increases across all key performance indicators. An 8.1% increase in ARR coupled with a 1.9 percentage point rise in occupancy led to a significant 10.9% increase in RevPAR. Additional improvements in non-rooms revenues helped to enhance TRevPAR performance by 11.6% to €155.80. A 3.2 percentage point decrease in payroll contributed to a DOPPAR and GOPPAR uplift of 20.6% to €80.82 and 44.6% to €37.12 respectively.
While Barcelona and Frankfurt have a slow start
Barcelona hotels experienced an increase in occupancy (+3.2 percentage points) but at the expense of the ARR, which declined by 6.4% producing a nearly flat RevPAR movement (+0.3%) to €66.83. Negative performances were registered in other departments with food revenue per available room being the only exception (+4.0%) and as a result TRevPAR went back by 2.6%. With operating costs under control, DOPPAR performance only reduced by 0.4% to €54.83 and despite efficient payroll management, GOPPAR diminished by 10.1% due to overheads per available room climbing by 6.7%.
In January, hotels in Frankfurt also achieved a surge in occupancy (+2.8 percentage points), but ARR fell by 2.0% resulting in a 2.4% RevPAR increase. Mixed performances were recorded in other departments leading to a 0.6% uplift in TRevPAR. A general increase in costs served to reduce DOPPAR by 0.7% to €80.70 and GOPPAR by 2.0% to €45.14.
Bucharest experiences challenging conditions
In January, a 4.0 percentage point drop in occupancy cancelled out a 1.2% increase in ARR and as a result RevPAR decreased by 5.7%. But positive movements in food (+1.2%) and beverage (+6.5%) moderated the rooms revenue reduction occasioning a -3.1% fall in TRevPAR. Falling revenues combined with rising costs reduced GOPPAR by 12,8% to €22.35.
Closer examination of the cost structure reveals a 23.2% rise in travel agent commissions to €2.18 per room let impacting rooms department profit conversion by 1.4 percentage points to 79.1%. With payroll increasing by 2.3 percentage points, overheads per available room rose most notably in administration and general (+9.6%), sales and marketing (+6.1%) and property and maintenance (+2.9%) leading to a fall in profit conversion to 29.8% from 33.2%.
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