Market Report Europe

Madrid and Warsaw Amongst the Best Performing Markets in March in Europe

European Chain Hotels Market Review - March 2014

HotStats Madrid and Warsaw were amongst the best performing markets in March in Europe, achieving impressive year-on-year increases in gross operating profit per available room (GOPPAR) by 70.7% and 25.1% respectively, according to the latest data from HotStats.

With occupancy shooting up by 10.5 percentage points in the Spanish capital and average room rate (ARR) increasing by 1.4%, revenue per available room (RevPAR) grew by a stunning 20.7%. Similar performances were registered in non-rooms departments and total revenue per available room (TRevPAR) rose by 19.5%. Well controlled operating costs and payroll management resulted in departmental operating profit per available room (DOPPAR) surging by 37.8% and GOPPAR by 70.7%.

Warsaw hoteliers experienced a 9.9% surge in RevPAR thanks to a 1.5 percentage point increase in occupancy and a 7.9% growth in ARR, most notably fuelled by a 20.6% increase in the Residential Conference segment rate. Additional revenue per available room from food (+4.0%), beverage (+13.2%) and meeting room hire (+7.1%) enhanced TRevPAR levels by 10.1% to €119.81. A 2.3 percentage point decrease in payroll combined with proficient operating cost control and stable overheads resulted in DOPPAR and GOPPAR jumping by 10.7% and 25.1% respectively.

Mind the gap for Dusseldorf and Moscow 

Dusseldorf hoteliers managed to increase RevPAR by 2.2% driven by a 2.3% rise in ARR, while occupancy remained virtually flat. However, this performance was cancelled out by negative movements across all ancillary departments, leading to a 0.8% TRevPAR decrease. With DOPPAR also decreasing by 3.9% because of rising operating costs like travel agents commission per room let (+39.6% to €8.67), and with payroll escalating by 1.1 percentage points, GOPPAR went down by 3.1%.

Different city but same story for Moscow hotels in March; the headline performance was positive thanks to a RevPAR growth of 1.9%, but this metric failed to show the full picture. Indeed, revenue per available room derived from food (- 11.2), beverage (-9.1%), meeting room hire (-7.5%) and leisure (-11.6%) decreased, and as a result TRevPAR diminished by 1.9%. A general cost increase underpinned by payroll climbing to 27.2% from 20.5% delivered a GOPPAR drop of 19.7%, producing a profit conversion of 42.5% down from 51.9%.

Paris hit by costs

In March, hotels in the French capital experienced almostflat movements across rooms’ department indicatorsresulting in RevPAR increasing by 0.2%, and with mixedperformance in ancillary departments TRevPAR showed asimilar movement of 0.2%. But a closer examination of costsrevealed direct rooms expenses per room let increasing by5.2% which led to a DOPPAR deterioration of 0.4%, andwith overheads per available room rising by 0.8% driven byadministration and general (+4.2%) and property andmaintenance (+2.1%), GOPPAR declined by 1.4%.

Graph - European Chain Hotels Market Review - March 2014

Click here for full report (PDF)

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:

Tony Oliveira
Business Development Manager
+44 (0)207 892 2234
tony.oliveira@hotstats.com




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