Whilst year-on-year growth in profit per room at hotels in Dublin slowed to 4.5 per cent for year-to-date 2017, the remarkable story of growth in top and bottom line performance at hotels in the Irish capital continues, according to the latest data from HotStats.
Having become accustomed to the huge profit growth recorded at hotels in the Irish capital in recent years, which has included a 30.1 per cent increase in 2015 and 19.9 per cent in 2016, the year-to-date growth is more subdued but still remains amongst the fastest growing in Europe.
Room occupancy at Dublin hotels dropped by 2.3 percentage points this month, but this was more than compensated for by the 6.9 per cent increase in achieved average room rate, to €144.84. As a result, the upward trajectory of RevPAR (Revenue per Available Room) for hotels in the Irish capital was maintained, with a 3.7 per cent increase for the month contributing to a 3.8 per cent year-to-date increase for 2017, to €100.75.
Hotels in Dublin will have their work cut out to maintain top line performance, as the number of forthcoming additions to supply is significant, including 18 projects over the next three years comprising 1,610 bedrooms, the most notable of which are the 202-bedroom Aloft Dublin City and 178-bedroom Clayton Hotel Charlemont.
For the moment though, the growth in top and bottom line performance remains considerable, with a 48.6 per cent increase in RevPAR recorded over the last 36 months, fuelling a 77.5 per cent increase in profit per room, to €79.40 in the 12 months to February 2017.
Non-Rooms Revenue Drives Profit Growth at Frankfurt Hotels
Despite hotels in Frankfurt virtually flatlining in RevPAR this month, hotels in the German city recorded a 3.7 per cent increase in profit per room thanks to growth in non-rooms revenue.
Hotels in Frankfurt posted a 0.4 percentage point increase in occupancy, but this was wiped out, almost in its entirety, by a 0.4 per cent decline in achieved average room rate, to €158.42.
However, the 0.1 increase in Rooms Revenue at Frankfurt hotels was supplemented by growth in non-rooms revenue, including Food and
Beverage (+5.3 per cent) and Conference and Banqueting (+8.7 per cent), which contributed to the 1.6 per cent increase in TrevPAR (Total Revenue per Available Room).
And despite a 2.1 per cent increase in Payroll per available room, a 0.6 per cent saving in Overheads on a per available room basis contributed to profit per room increasing to €56.49, equivalent to a profit conversion of 34.6 per cent of total revenue.
Troubled Fall into
Hotels in Istanbul recorded a profit per room of -€2.71 in February, as year-on-year profit levels dropped by 50.6 per cent this month, led by a 14.8 per cent drop in RevPAR to €30.55.
The drop in RevPAR this month was due to a 4.2 percentage point decrease in room occupancy, to just 39.7 per cent, as well as a 5.9 per cent decline in achieved average room rate, to €77.03.
The commercial segment has been the hardest hit in recent years, with the residential conference and corporate segments comprising 38.6 per cent of accommodated roomnights in the 12 months to February 2017, which is well down from 51.7 per cent in the 12 months to February 2014. For the average hotel polled in our sample for Istanbul, the decline is equivalent to a drop of approximately 15,000 accommodated commercial-related roomnights per annum over the last 36 months.
The recent poor performance means there is little room for further cost cutting and payroll levels at hotels in Istanbul increased by a further 0.9 percentage points to 57.4 per cent of total revenue, wiping out more than half of hotel profits. The remaining revenues were hit by overhead costs, which accounted for 48.5 per cent of total revenue.
Click here ( Adobe Acrobat PDF file) to view full the report.
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:
+44 (0) 20 7892 2241
Logos, product and company names mentioned are the property of their respective owners.