European Chain Hotels Market Review – March 2015

In February, Budapest and Warsaw hotels registered impressive surges in gross operating profit per available room (GOPPAR) of 78.5% and 54.1% respectively, according to the latest data from HotStats.

Amsterdam and Vienna hotels recorded increases in gross operating profit per available room (GOPPAR) of 6.4% and 11.9% respectively in March, confirming positive performance for the first quarter of the year according to the latest data from HotStats.
Hoteliers in Amsterdam experienced a 2.2 percentage point rise in demand at the expense of average room rate, which declined by 0.6%, resulting in a rooms revenue per available room (RevPAR) growth of 2.3%. With the exception of C&B room hire, other sources of revenue per available room boosted total revenue per available room (TRevPAR) levels by 3.2%. Cost control further enhanced the overall performance with departmental operating profit per available room (DOPPAR) and GOPPAR going up by 4.8% and 6.4% respectively.
Vienna also experienced a great March with all key performance indicators showing year-on-year positive movements. A combined increase in occupancy (+1.9 percentage points to 65.4%) and in ARR (+1.4% to €153.65) delivered a RevPAR growth of 4.4%. With surges in revenue per available room derived from food (+2.8%), beverage (+4.4%) and C&B room hire (+35.3%), non- rooms departments’ results further supported the TRevPAR surge of 5.7%. Despite overheads per available room rising by 5.8%, hoteliers managed to produce increases in DOPPAR and GOPPAR of 8.7% and 11.9% respectively.
Slow start for Milan and Rome
Hotels in Milan registered a slow start to the year with March and Quarter 1 results reporting negative year-on- year comparisons in profit per room. When looking at the performance in the month, hoteliers managed to increase ARR by 4.3% but occupancy declined by 6.8 percentage points producing a RevPAR drop of 4.5%. Negative performances in other revenue streams further exacerbated the TRevPAR decline of 5.1%. With payroll increasing by 2.1 percentage points and despite overheads per available room reducing by 1.7%, GOPPAR went down by 17.2% compared to the same period last year.
In March, Rome hoteliers experienced a slight rise in demand of 0.4 percentage points which combined with a significant decline in ARR of 11.8% delivered a RevPAR drop of 11.3%. Non-rooms revenue growth softened the TRevPAR decrease of 7.9%, but a general increase in costs led to a DOPPAR and GOPPAR fall of 10.8% and 48.7% respectively. The Italian capital also posted negative year-on-year comparisons across all key performance indicators during the first quarter.
St Petersburg performed
In March, the St Petersburg hotel market demonstrated great resilience to current market conditions with TRevPAR and GOPPAR increasing by 1.8% and 2.1% respectively, according to the latest HotStats data.
RevPAR rose by 5.0% thanks to a surge in demand (+3.3 percentage points) while ARR declined by 1.6%. With mixed performances recorded in ancillary revenues, TRevPAR increased by 1.8% but hoteliers managed to moderate operating costs to deliver a growth in DOPPAR of 3.2%. Despite overheads per available room and payroll going up, GOPPAR increased by 2.1% compared to the same period last year. 

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