A 22.8% increase in profit per room for Amsterdam hoteliers in March helped fuel a 27.8% year-on-year GOPPAR (Gross Operating Profit per Available Room) increase in Q1 2016, according to the latest data from HotStats.
March was a particularly strong month of headline performance, as in addition to a 1.3 percentage point increase in room occupancy, to 78.1%, hotels in Amsterdam achieved a 13.8% increase in achieved average room rate, to €172.61 from €151.73 during the same period in 2015.
The strong growth in achieved average room rate was primarily as a result of an increase in segment rates for the Best Available Rate, up by 15.2% to €219.87 and the leisure sector rate, up by 15.3% to €175.59 in March. That said, significant year-on-year growth was also achieved in the residential conference (+9.9%) and corporate (+14.0%) segments this month.
The growth in achieved average room rate this month was aided by the significant uplift in demand in the city due to major events at the RAI Exhibition and Convention Centre, including FESPA Digital and the European Breast Cancer Conference, which both take place in different locations each year and collectively attract more than 20,000 delegates.
Terror Attacks Cause Hotel Profit to Plummet in Brussels
Year-on-year profit per room at Brussels hotels plummeted by 44.5% for the month, to €30.09 from €54.25 during the same period in 2015, as the city felt the impact of the terror attacks at Brussels Zaventem Airport and Maelbeek metro station on 22 March, as well as the unrest which followed as police carried out raids across the city searching for the perpetrators.
Unsurprisingly, volume in the Belgian capital was hardest hit, but whilst the terror attacks resulted in a 16.7 percentage point year-on- year decline in occupancy for the month, to 58.6% from 75.3%, top line performance has been challenged since November 2015, when Brussels was put on the highest level of security alert further to the Paris attacks and the associated shut down of the Belgian capital.
Declining volume and price levels in the capital have resulted in a drop in RevPAR in January (-10.5%), February (-1.4%) and March (- 20.1%) 2016 as the number of visitors to the city has significantly declined.
As a result of depleted revenue levels, considerable declines in departmental profit per available room were recorded at Brussels hotels in Q1 2016, including a drop in the Rooms (-14.2%) and Food & Beverage (-29.0%) departments.
Overall, year-on-year GOPPAR levels in Q1 2016 have plummeted by 32.0%, with profit per room in the 12 months to March 2016 already 9.4% behind the same period in 2014/15 at €35.77 from €39.47.
Rome Hoteliers Record Huge Profit Growth Thanks to Cost Management
Despite recording a year-on-year RevPAR increase of just 4.8%, hotels in Rome achieved profit per room growth of 25.3% for the month of March, to €27.82 from €22.21 during the same period in 2015.
In addition to a 12.5% saving in overheads costs, to 28.6% of total revenue from 33.8% in March 2015, considerable cost reductions were achieved in Undistributed Operating Expenses, including Administration & General (-1.1%), Sales & Marketing (-2.0%) and Property & Maintenance (-39.0%).
Despite starting from a low base of just €3.12, hoteliers in Rome have successfully achieved an 86.9% increase in profit per room in Q1 2016, to €5.83. However, profit conversion at Rome hotels remained relatively low at just 3.8% of total revenue for the quarter.
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