Market Report Europe

July 2014 Hotel Profit Surge for Budapest and Zurich

European Chain Hotels Market Review - July 2014

HotStats Both Budapest and Zurich registered impressive surges in gross operating profit per available room (GOPPAR) of 32.7% and 31.4% respectively in July, according to the latest data from HotStats.

Hotels in the Hungarian capital simultaneously increased occupancy (+4.6 percentage points) and average room rate (+9.0%) to produce a rooms’ revenue per available room (RevPAR) growth of 15.4%. A general increase in other revenue streams further boosted total revenue per available room (TRevPAR) by 15.9%. Hoteliers also increased departmental operating profit per available room (DOPPAR) by 20.7% thanks to proficient cost control with rooms and food and beverage conversion increasing by 1.2 percentage points to 78.2% and 4.6 percentage points to 29.8% respectively. Despite overheads per available room rising, payroll significantly declined and GOPPAR went up by 32.7%.

RevPAR growth of 4.2% in Zurich was only driven by a 3.5 percentage points rise in demand as ARR remained flat in July. Strong performances per available room derived from food (7.0%) and meeting room hire (43.7%) contributed to increase TRevPAR levels by 6.1%. But this stunning month profit gain of 31.4% was mostly due to efficient cost control with DOPPAR going up by 14.3% while payroll and overheads per available room dropped by 3.0 percentage points and 1.3% respectively.

…As well as for Madrid and Paris! 

Madrid hotels experienced both increases in occupancy (+2.3 percentage points) and ARR (+3.6%) leading to a RevPAR uplift of 7.5%. With positive performances also recorded in revenue per available from food (+3.4%), beverage (+4.7%) and meeting room hire (+58.6%), TRevPAR rose by 7.9%. Efficient operating cost control helped to increase DOPPAR by 12.8% whilst hoteliers also managed to reduce overheads per available room by 1.3% and payroll by 3.1 percentage points. As a result, GOPPAR surged by 36.6%.

July was also a positive month for Paris hoteliers with GOPPAR shooting up by 13.4%, representing a gross profit conversion of 33.5%. A RevPAR growth of 7.0% was further supported by a general increase in non-rooms revenue leading to TRevPAR surge of 7.2%. Astute cost control with DOPPAR going up by 8.9% and payroll declining by 1.6 percentage points contributed to this month profit growth.

Chill July for Moscow

In July, Moscow hotels recorded negative year-on-year comparisons across all key performance indicators. A combined fall in demand (-6.8 percentage points) and in ARR (-5.2%) resulted in a RevPAR decline of 13.7%. Similar movements were achieved in non-rooms revenues and TRevPAR decreased by 14.6%. A general increase in costs contributed to a DOPPAR drop of 18.1% and with payroll rising by 4.3 percentage points, GOPPAR fell by 29.5%.

Graph - European Chain Hotels Market Review - July 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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