Total Revenue and Gross Operating Profit growth was achieved throughout Europe from Amsterdam to Warsaw, according to the latest HotStats survey.
Amongst the eight cities surveyed this month, the biggest year-on-year profit gains (+76.7%) were experienced in Cologne followed by Dublin (+50.2%), Paris (+20.8%) and Amsterdam (+19.1%). Whilst Cologne still brings up the rear with Gross Operating Profit Per Available Room (GOPPAR) at €33.81, Amsterdam is this month’s star performer with profits per room of €108.16.
Over a longer time horizon Dublin shows stamina with outstanding profit performance through the last twelve months. Hoteliers in the Irish capital were able to improve their performance on all key performance indicators with Occupancy (+3.9 pts) and Average Room Rate (ARR +10.4%) each recording good growth and combining to deliver significant Revenue Per Available Room (RevPar) growth of 16.0% equalling approximately €16. This was enhanced by increases in food (+5.1%) and beverage revenues (+3.0%) per available room. Furthermore, boosted C&B productivity with meeting room hire per square metre up 12.6% helped achieve Total Revenues Per Available Room (TrevPar) of €208.09, 11.3% above last year’s figure. Double digit revenue growth and improved F&B and Rooms conversion rates enabled departmental operating profits (DOP) to improve by 3 percentage points to 50.3% of total revenues. With property & maintenance, sales & marketing and admin & general expenses all slightly decreasing (when related to total revenues) and marginal cost increases associated with utilities, hoteliers in Dublin managed to convert their revenue gains to the bottom line with GOPPAR improving by 33.1% to 26.9% of total revenues.
The Frankfurt story for April, on the other hand, is less dramatic but still in positive territory, for the bottom line, at least. Despite an occupancy increase of 5.7 percentage points a fall in rate of 12.7% from €162.64 to €142.04 caused RevPar to drop by 4.3%. This, however, did not prevent hoteliers in Germany’s financial capital from growing their total revenues and profits per available room. Thanks to an increase in demand from the conference segment (+19%), C&B revenues per available room grew by 19.6% to €41.13 and helped Frankfurt hotels achieve a surge in total revenues of 3.6%. Astute payroll and overhead cost management succeeded in offsetting slight increases in direct expenses and consequently made way for an increase in GOPPAR of 2.4% to €41.91.
April performance had a positive impact on Frankfurt’s calendar year to date results which, due to a slow start in the first quarter are not yet showing cumulative profit growth (-0.1%), despite TrevPar rising by 3.6%.
Last month Frankfurt’s results clearly showed the importance of managing hotels with a clear eye on bottom line performance as the negative rooms revenue indicators masked growth in profits.
Editors Notes:
The hotels profiled in this report are drawn from the HotStats database and reflect the portfolios and distribution of the hotel chains that we survey and which operate primarily in the four and five-star sectors.
Please note: The data samples are reviewed and rebased each year to reflect the changes in the HotStats survey base. As a result, performance ratios published last year may differ from those contained within this report.
Occupancy (%) is that proportion of the bedrooms available during the period which are occupied during the period.
Average Room Rate (ARR) is the total bedroom revenue for the period divided by the total bedrooms occupied during the period.
Room RevPar (RevPAR) is the total bedroom revenue for the period divided by the total available rooms during the period.
Total RevPar (TrevPAR) is the combined total of all revenues divided by the total available rooms during the period.
Payroll % is the payroll for all hotels in the sample as a percentage of total revenue.
GOPPAR is the Total Gross Operating Profit for the period divided by the total available rooms during the period.
Services:
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