Hotels in Europe recorded a 7.0% increase in profit per room in December, which concluded a positive year of performance for hotels in the region, according to the latest worldwide poll of full-service hotels from HotStats.
Hotels in Europe maintained their consistent growth this month, recording a 0.4 percentage point increase in room occupancy, to 59.8%, as well as a 4.2% increase in achieved average room rate, to 145.26 euros, which contributed to the 4.9% year-on-year increase in RevPAR, to 86.87 euros.
In addition to the growth in Rooms Revenue, hotels in Europe recorded an increase in Non-Rooms Revenues, including Food & Beverage (+3.5%), Conference & Banqueting (+4.9%) and Leisure (+1.9%), on a per available room basis, which contributed to the 4.2% increase in TrevPAR, to 144.70 euros.
Despite room occupancy levels in December being well below the annual performance, hotels in Europe were able to successfully record increases in achieved average rate across a number of segments, including Residential Conference (+3.8%), Corporate (+9.4%) and Individual Leisure (+6.7%).
Profit & Loss Key Performance Indicators – Europe (in EUR)
December 2017 v December 2016
December 2017 v December 2016
- RevPAR: +4.9% to €86.87
- TrevPAR: +4.2% to €144.70
- Payroll: +1.2 pts to 38.6%
- GOPPAR: +7.0% to €37.11
Whilst hotels in Europe suffered an increase in costs, which included a 1.2-percentage point uplift in Payroll, to 38.6% of total revenue, GOPPAR levels increased by 7.0% year-on-year, to €37.11. This is equivalent to a profit conversion of 25.6% of total revenue.
An uplift in room occupancy levels helped drive growth in revenue and profit for hotels in the Middle East and Africa this month, and marked a positive end to a year of mixed results for the region, according to the latest worldwide poll of full-service hotels from HotStats.
Although hotels in the Middle East & Africa suffered a 2.9% drop in achieved average room rate in December, to $189.18, a 3.1-percentage point increase in room occupancy, to 66.6%, helped drive a 1.8% increase in RevPAR, to $125.94.
Whilst an increase in volume was achieved across most segments, it was at the expense of a decline in achieved average room rate in the Residential Conference (-4.6%), Individual Leisure (-8.2%) and Group Leisure (-9.2%) sector rates.
The uplift in volume contributed to an increase in Non-Rooms Revenues, including Food & Beverage (+5.0%) and Conference & Banqueting (+4.1%), which supported a 2.3% increase in TrevPAR in December, to $225.14.
Profit & Loss Key Performance Indicators – Middle East & Africa (in USD)
December 2017 v December 2016
December 2017 v December 2016
- RevPAR: +1.8% to $125.94
- TrevPAR: +2.3% to $225.14
- Payroll: -0.7 pts to 23.3%
- GOPPAR: +3.5% to $95.63
In addition to the growth in TrevPAR, profit levels at hotels in the Middle East & Africa were further boosted by a 0.7-percentage point saving in Payroll, which fell to 23.3%.
As a result of the movement in revenue and costs, GOPPAR at hotels in the region increased by 3.5% in December, to $95.63, which was equivalent to a profit conversion of 42.5% of total revenue.
“The diversity of hotel markets across the Middle East & Africa and their key demand drivers means it always going to be a mixed bag of top and bottom line performance, but this year has been particularly volatile due to the ongoing oil crisis, political and economic instability and security concerns.
It is therefore pleasing to report such a positive month of trading for hotels in the region at the end of 2017 and we look forward to profit performance recovering further in 2018,” said Pablo Alonso, CEO of HotStats.
Tags:HotStats
