HotStats European Chain Hotels Market Review – September 2013
Revenue and profit grow in Amsterdam and Barcelona hotels
In September, hoteliers in the Dutch capital achieved Occupancy of 91.0% (+6.5pts y-o-y), reaching the 80%-mark for the calendar year performance (80.6%), according to the latest HotStats survey. This was complemented by a stunning 15.9% increase in average room rate (ARR) leading to a RevPAR surge of 24.9% to €220.72.
Non-rooms departments also contributed to the overall strong September performance with revenue increases per available room from food (+13.3%) at €39.29, beverage (11.4%) at €13.73 and most significantly with meeting room hire (+37.7%) at €9.49. As a result, total revenues per available room (TrevPAR) grew by 22.7% to €292.72. This revenue growth, enhanced by operational costs control and efficient payroll management delivered an increase in Gross Operating Profit per available room (GOPPAR) of 32.8% to €148.35, despite overheads rising by 9.6%.
Barcelona also showed positive year-on-year performance in September across all key performance indicators with a TrevPAR increase of 27.8% and GOPPAR increase of 55.3%. This performance helped to enhance a solid third quarter performance as both measures surged by 15.4% and 29.8% respectively.
Dublin’s September RevPAR flatters to deceive
Although Dublin experienced a remarkable occupancy of 91.3%, this result represented a 1.2 percentage points decline in comparison to the same month last year, but thanks to a 2.4% uplift in average room rate (ARR), RevPAR slightly increased by 1.1% to €152.02. However this gain in RevPAR was offset by a general decrease in the other main sources of revenues leading to a TrevPAR diminution of 2.0% to €244.20.
Hoteliers in Dublin managed to keep departmental profit conversion per available room (DOPPAR) flat at 56.1% of the total revenue. But an increase in overheads per room let derived from utilities costs (+8.2%), property and maintenance (+4.4%) and sales and marketing (+19.6%), combined with a payroll uplift of 1 percentage points impacted the profitability per available room by -2.6%.
Nevertheless, when looking at the third quarter performance, the RevPAR, TrevPAR and GOPPAR results confirmed the very positive year so far with increases by 4.5%, 2.9% and 7.4%.
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.
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- 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.
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