Both Budapest and Vienna registered revenue per available room (RevPAR) growth in April but failed to convert these gains to the bottom line with gross operating profit per available room (GOPPAR) showing year-on-year negative movements of 1.9% and by 1.2% respectively, according to the latest data from HotStats.
Budapest hoteliers managed to simultaneously increase occupancy by 3.0 percentage points to 77.7% and average room rate (ARR) by 0.6%, resulting in RevPAR growth of 4.6% to €67.04. However, negative performances were recorded in non-rooms revenues, and total revenue per available room (TRevPAR) went down by 2.6%, outweighing the RevPAR gain. With operating costs rising, departmental operating profit per available room (DOPPAR) decreased by 2.2%. Payroll increased by 0.9 percentage points but overheads per available room were reduced by 2.5%, softening GOPPAR drop to 1.9%.
In April, hotels in the Austrian capital boosted occupancy by 2.8 percentage points at the expense of ARR (-1.3%), leading to a 2.9% uplift in RevPAR. But hoteliers in Vienna also experienced disappointment despite the RevPAR growth. Indeed, a general decrease in ancillary revenues resulted in TRevPAR going down by 2.6% and DOPPAR also declined by 0.7%. Despite overheads and payroll diminishing, it was not enough to save the overall performance with GOPPAR dropping by 1.2% to €26.54.
Bleak picture for Berlin and Hamburg
Berlin hotels achieved negative year-on-year comparisons across all key performance indicators for the month of April. A decrease in both occupancy and ARR by 8.1 percentage points and 11.8% respectively produced a 20.8% decrease in RevPAR. Similar movements in non-rooms revenues exacerbated the poor performance and TRevPAR decreased by 25.4%. With rising operating costs and payroll, GOPPAR achieved was 56.4% lower compared to the same period last year, despite overheads per available room being reduced by 9.1%.
In April, Hamburg also suffered from a decline in GOPPAR (- 6.2%) but for different reasons. Hoteliers managed slight increases in both occupancy (+0.4 percentage points) and ARR (+0.3%) to deliver a 0.8% growth in RevPAR. But revenues per available room derived from food (-9.2%), beverage (-6.6%), meeting room hire (-40.8%) and leisure (- 4.1%) cancelled out the rooms’ performance. As a result, TRevPAR decreased by 3.4% and DOPPAR declined by 3.2%. Despite efficient payroll management (-1.3 percentage points), overheads per available room surged by 2.3% and thereby contributed to the profit decline.
RevPAR up but GOPPAR down for Dublin
In April, Dublin hotels registered a 0.6% RevPAR increase only driven by ARR, as occupancy remained flat at a nevertheless healthy 82.0% compared to the same period last year. But mixed performance in ancillary departments negated this gain and TRevPAR went down by 0.3%. In the meantime, DOPPAR decreased by 5.1% mostly due to food and beverage conversion profit falling by 4.8 percentage points to 23.0%. Despite overheads per available room declining, payroll surged by 0.6 percentage points leading to a GOPPAR decline of 7.3%.
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