Whilst Berlin hotels recorded an 8.0 per cent year-on-year increase in total revenue this month, astute hoteliers slashed costs, which fuelled a 29.0 per cent increase in profit per room, according to the latest data from HotStats.
The growth in total revenue in March was primarily as a result of a 7.0 per cent increase in RevPAR (Revenue per Available Room) as hotels in the German capital achieved notable growth in both room occupancy (1.4 percentage points) and achieved average room rate (+5.0 per cent), to €147.83.
In addition to the top line increases recorded across all hotel revenue centres, a reduction in departmental costs enabled hotels in Berlin to record profit per room increases in the Rooms (+12.6 per cent), Food and Beverage (+43.0 per cent) and Minor Operating Departments (+5.6 per cent).
As a result, hotels in Berlin achieved a 17.0 per cent increase in Total Departmental Profit in March, to €99.99 per available room. In addition, a 1.4 percentage point decrease in payroll as a percentage of total revenue, to 30.4 per cent, enabled hotels in Berlin to record a 29.0 per cent year-on-year increase in profit per room, which contributed to the 11.0 per cent increase for Q1 2017, to €59.99 per available room.
Hotels in Milan Return to Profit Growth in Q1 2017 After Post- EXPO Slump
Following a slump in 2016, hotels in Milan are almost back on par with the hugely successful top and bottom line performance in 2015 when the city was flooded with visitors due to EXPO Milano.
The return to strong performance levels has primarily been due to the recovery in room occupancy, as hotels in Milan have recorded a 5.0 percentage point year-on-year increase for Q1 2017 to 70.9 per cent.
This is in contrast to 2016, when room occupancy levels fell well below the historic performance, as well as being in contrast to the rate performance in the city, which has been maintained well ahead of historic levels, at €188.47 in 2016, compared to €169.43 in 2014.
Whilst hotels in Milan have recorded a 0.6 per cent decline in achieved average room rate for Q1 2017, the strength of the recovery in room
occupancy has fuelled a 6.9 per cent increase in RevPAR to €128.12, which is well ahead of the same period in 2015 at €118.70.
Despite the strong profit growth in Q1 2017, in the 12 months to March 2017 hotels in Milan have recorded a profit per room of €55.72, which means there is still some way to go to catch up with the the peak profit performance recorded in the year of the EXPO (2015) at €62.72
Prague Hoteliers Lean Heavily on Commercial Segment to Drive Profit
Hotels in Prague recorded a 10.6 per cent year-on-year increase in profit per room this month, driven by growth in both price and volume in the commercial segment.
The growth in achieved rate in both the corporate (+8.1 per cent) and residential conference (+9.4 per cent) sectors was a primary contributor to the 1.8 per cent increase in achieved average room rate at hotels in the capital of the Czech Republic this month, to €87.70.
In contrast, declines were recorded in the individual leisure (-9.3 per cent) and group leisure (-14.4 per cent) segments during the same period, with the number of accommodated roomnights recorded in the leisure sector falling to 31.8 per cent of total demand for the month, from an average of 39.3 per cent in the 12 months to March 2017.
Despite hotels in Prague recording a year-on-year increase in both Payroll (+5.0 per cent) and Overheads (+0.5 per cent) on a per available room basis, a 5.6 per cent increase in total revenue contributed to a 10.6 per cent increase in profit per room, to €40.23.
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