European chain hotels market review – October 2013
Of the five European city markets featured, Brussels, Dublin and Paris registered a growth in total revenue per available room (TrevPAR) and gross operating profit per available room (GOPPAR) for the month of October, according to the latest HotStats survey.
Brussels registered a 2.6% increase in revenue per available room (RevPAR) thanks to a 1.7 percentage points rise in occupancy to 78.9% and a small increase (0.5%) in average room rate to ?133.53. Additional revenues per available room from food (+9.1%), beverage (9.3%) and meeting room hire (+15.9%) contributed to a total revenue per available room (TrevPAR) surge of 5.1% to ?152.03.
Food and beverage conversion rose by 5 percentage points and helped to enhance the departmental operating profit per available room (DOPPAR) of ?86.22, representing a 7% increase. Despite a 1.3% uplift in overheads per available room, Brussels hoteliers controlled their payroll as a percentage of total revenue, decreasing it by 3.9 percentage points, which led to an 11% rise in GOPPAR.
Hotels in Dublin and Paris also showed positive year-on-year performance in October across all key performance indicators with increases in TrevPAR by 0.8% and 3.1% and GOPPAR by 8.7% and 4.4% respectively.
In the Russian capital, hotels managed to increase occupancy in October by 1.0 percentage point but average room rate (ARR) declined by 2.3% leading to a RevPAR decline of 1.1% to ?125.36. Mixed performances were also recorded in other departments with revenue per available room from food and leisure decreasing by 2.8% and 24.6% respectively, whilst revenue per available room rose from beverage (2.7%) and meeting room hire (4.7%). As a result, TrevPAR dropped by 1.0% to ?198.90.
A general rise in operational costs impacted departmental operating profit per available room (DOPPAR) by 5.4%. Payroll also rose by 2.0 percentage points and with admin and general and utilities expenses also increasing, hotels? profitability in Moscow diminished by 9.3%. However, the picture is much more positive when looking at the calendar year performances with increases in TrevPAR and GOPPAR of 5.0% and 7.2% respectively.
Istanbul reported negative year-on-year comparisons in most key performance indicators, with ARR being the only exception. Occupancy dropped significantly to 59.5% compared to 66.9% last year and consequently RevPAR and TrevPAR decreased by 10.7% and 8.5% respectively. Despite overheads per available room slightly dropping by 1.9%, rising payroll contributed to an 18.8% decline in GOPPAR. But unlike Moscow, these October results confirmed trends observed throughout 2013.
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