Hotels in Brussels recorded a 116.8 per cent year-on-year increase in profit per room this month, as a result of the Belgian capital hosting the NATO Summit, according to the latest data from HotStats.
The staggering year-on-year increase in performance was led by an 18.7 percentage point uplift in room occupancy, to 75.1 per cent.
Whilst more measured, the 3.0 per cent increase in achieved average room rate, to €144.28, helped fuel the 37.2 per cent increase in RevPAR (Revenue per Available Room) for the month, to €108.37.
This strength of demand in Brussels enabled hoteliers to drive top and bottom line performance to some of the highest levels recorded since the terrorist activity in the Belgian capital in March 2016.
In addition to the increase in Rooms Revenue, hotels in Brussels successfully achieved an increase in Non-Rooms Revenues, including Food and Beverage (+23.2 per cent) and Conference and Banqueting (+26.4 per cent), which fuelled a TrevPAR (Total Revenue per Available Room) increase of 28.9 per cent to €148.77.
Whilst the strong top line performance enabled hoteliers in Brussels to record a 7.3 percentage point reduction in payroll levels, at 42.7 per cent of total revenue, this cost still remains high against the European average of 28.9 per cent. As a result, and in spite of the staggering year -on-year increase, profit conversion at Brussels hotels remains relatively low at 26.6 per cent of total revenue this month.
Hotels in Rome Coming Back Down to Earth After Holy Year High
Further to the standout performance of hotels in Rome in 2016 due to the Jubilee or Holy Year of Mercy, profit levels are realigning, illustrated by the 12.3 per cent year-on-year decline in profit per room this month.
By this time last year, it was estimated that 9.1 million people had made the pilgrimage to Rome to celebrate the Jubilee and the swathes of visitors enabled hotels in the Italian capital to leverage average room rate and enjoy an uplift in Non-Rooms Revenues.
However, RevPAR performance this month has fallen by 11.5 per cent as a result of a 3.4 percentage point decline in room occupancy as well as a 7.9 per cent drop in achieved average room rate, to €224.56.
In addition to the drop in RevPAR, declining revenue in Non-Rooms Departments contributed to a 6.5 per cent drop in TrevPAR to €287.36.
Whilst hotels in Rome have been able to successfully modify costs to account for the falling revenues, illustrated by the savings this month in Payroll (-0.7 per cent) and Overheads (-5.3 per cent), the adjustment was not sufficient to offset the decline in revenue, and as a result profit per room fell to €107.63.
Exceptional Occupancy Enables Warsaw Hoteliers to Leverage Rate to Drive Profit
Hotels in Warsaw recorded a 17.1 per cent increase in achieved average room rate this month which fuelled a 23.4 per cent increase in profit per room, as hoteliers were able to leverage rate on the back of room occupancy levels of +80 per cent.
The strength of demand enabled hotels in Warsaw to achieve considerable rate growth across all market segments, including Best Available Rate (+14.5 per cent), Residential Conference (+26.1 per cent), Corporate (+8.4 per cent), Individual Leisure (+30.9 per cent) and Group Leisure (+17.3 per cent).
Furthermore, increases were recorded in Non-Rooms Departments, including Food and Beverage (+8.8 per cent) and Conference and Banqueting (+17.7 per cent). As a result, TrevPAR at hotels in Warsaw increased by 12.7 per cent year-on-year, to €141.35.
Payroll at hotels in Warsaw remains amongst the lowest in Europe, at just 21.5 per cent of total revenue, following a 1.6 percentage point reduction this month. The meagre payroll levels contributed to a profit conversion at a staggering 49.6 per cent of total revenue this month.
Click here ( Adobe Acrobat PDF file) to view full the report.
For an inside view of a local or regional market place in the hotel sector, bespoke HotStats reports are available. Terms and conditions apply. Visit www.hotstats.com to view a sample report.
HotStats provides two reporting tools to hoteliers:
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.
Our latest innovation in daily revenue intelligence, MORSE. Amongst its reporting are daily and highly granular market segmentation metrics as well as distribution channel and source of booking analysis. It takes daily market intelligence to a whole new level.
For more information contact:
+44 (0) 20 7892 2241
Logos, product and company names mentioned are the property of their respective owners.