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%.
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