Hotels in Brussels have suffered a 56.9% year-on-year profit drop for the month of September, contributing to a 57.3% decline for year-to- date 2016, as the security threat level in the Belgian capital remains high following the terrorist activity in the city in March, according to the latest data from HotStats.
The drop in profit per room has been primarily due to falling top line performance levels, as hotels in the city have now recorded a year-on- year decline in RevPAR (Revenue per Available Room) of 26.5%, to €75.32 in the nine months to September 2016.
Despite Brussels hoteliers broadly maintaining year-to-date achieved average room rate, which has dropped by just 1.9% year-on-year, to €131.58, occupancy levels have plummeted by 19.1 percentage points to 57.2%, with a low of just 47.0% recorded in August.
The 56.9% year-on-year drop in profit this month was in spite of savings in both payroll (+9.7%) and overheads (+1.2%) on a per available room basis.
September is Bumper Month for Munich Hotels Once Again
Further to the peak performance achieved in September 2015, Munich hotels are at it once again, with profit per room cresting at €128.08 this month, more than 117.0% above the year-to-date figure of €58.93.
In addition to maintaining strong room occupancy, at 88.0%, the achieved average room rate recorded in September was a post- recession peak, at €217.94. As a result, RevPAR this month peaked at €191.83, which is 62.1% above the year-to-date average of €118.36.
The strong period of operation is helped by a packed events calendar at Messe München, which this month included the EASD Annual Meeting, which attracted more the 15,000 delegates.
Per available room increases in Food and Beverage (+2.4%) and Conference and Banqueting (+9.0%) Revenue, as well as a 0.9% reduction in overheads, contributed to the 6.8% year-on-year increase in profit per room for the month and enabled a profit conversion of 54.1% of total revenue to be achieved at Munich hotels.
Hotels in Rome Profiting from Year of Mercy
In the nine months to September 2016, Rome hoteliers have achieved a 5.3% increase in RevPAR, contributing to a 15.7% increase in profit per room, as the city has been enjoying events related to the Extraordinary Jubilee of Mercy.
Whilst there has not been a dramatic year-on-year increase in hotel performance throughout the year, the growth has been steady and for September this included a 2.5 percentage point increase in occupancy, to 87.3%, as well as a 3.3% increase in achieved average room rate, to €222.77.
In addition to the typical demand segments to Rome in September, the Jubilee Year has encouraged pilgrimages to the Holy Doors of the Roman Basilicas throughout the year, which has resulted in an uplift in demand from tours/groups, fuelling a 110.7% increase in the rate achieved in this segment, to €307.37.
The growth in rooms revenue has been supplemented by an uplift in revenue in the Food and Beverage (+5.0%) and Conference and Banqueting (+10.3%) departments on a per available room basis, illustrating the breadth of demand in the city.
The growth in profit has been assisted by a 1.4 percentage point drop in payroll as a proportion of total revenue, to 37.1%. Despite the increases, profit conversion at hotels in Rome remains relatively low at 28.3% in the nine months to September 2016.
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