Hotel Mamaison Riverside, Prague.
Across the region, RevPAR growth was once again boosted by year-on-year increases in achieved average room rate, which grew by 4.8% year-on-year to 165.28 euros, with growth also recorded in room occupancy, but at a more muted 0.5-percentage points, to 76.6% for the month.
Hotels in Central and Eastern Europe led the way in another bumper month of GOPPAR growth for hotels across Europe, which contributed to the ongoing positive performance levels for the region for year-to-date 2017, according to the latest worldwide poll of full-service hotels from HotStats.
Across the region, RevPAR growth was once again boosted by year-on-year increases in achieved average room rate, which grew by 4.8% year-on-year to 165.28 euros, with growth also recorded in room occupancy, but at a more muted 0.5-percentage points, to 76.6% for the month.
The current confidence of the business sector is reflected in the growth in commercial segment rates for hotels across Europe, which included year-on-year increases in the residential conference (+2.3%) and corporate (+8.0%) segment.
Furthermore, increases in the individual leisure (+12.0%) and group leisure (+12.1%) rates, illustrates the current rude health of the tourism industry across the region.
The movement in occupancy and achieved average room rate contributed to the 5.5% increase in RevPAR, to 126.61 euros. In addition, an increase in Non-Rooms Revenue, including Food and Beverage (+3.7%) and Conference and Banqueting (+6.4%), contributed to the 5.0% increase in TrevPAR, to €192.60, which maintained the upward trajectory in this measure for year-to-date 2017.
Hotels in Central and Eastern Europe led the way in another bumper month of GOPPAR growth for hotels across Europe, which contributed to the ongoing positive performance levels for the region for year-to-date 2017, according to the latest worldwide poll of full-service hotels from HotStats.
Across the region, RevPAR growth was once again boosted by year-on-year increases in achieved average room rate, which grew by 4.8% year-on-year to 165.28 euros, with growth also recorded in room occupancy, but at a more muted 0.5-percentage points, to 76.6% for the month.
The current confidence of the business sector is reflected in the growth in commercial segment rates for hotels across Europe, which included year-on-year increases in the residential conference (+2.3%) and corporate (+8.0%) segment.
Furthermore, increases in the individual leisure (+12.0%) and group leisure (+12.1%) rates, illustrates the current rude health of the tourism industry across the region.
The movement in occupancy and achieved average room rate contributed to the 5.5% increase in RevPAR, to 126.61 euros. In addition, an increase in Non-Rooms Revenue, including Food and Beverage (+3.7%) and Conference and Banqueting (+6.4%), contributed to the 5.0% increase in TrevPAR, to 192.60 euros, which maintained the upward trajectory in this measure for year-to-date 2017.
Profit & Loss Key Performance Indicators – Europe (in EUR)
October 2017 v October 2016
- RevPAR: +5.5% to 126.61 euros
- TrevPAR: +5.0% to 192.60 euros
- Payroll: -0.3 pts to 30.4%
- GOPPAR: +7.2% to 75.58 euros
The year-on-year growth in TrevPAR was further buoyed by a reduction in costs, which included a 0.3 percentage point saving in Payroll to 30.4% of total revenue, which helped hotels in Europe record a 7.2% increase in GOPPAR, to 75.58 euros. This was equivalent to a profit conversion of 39.2% of total revenue.
“According to the European commission president, Jean-Claude Juncker, the benefits of structural reform implemented in the wake of the global financial crisis are finally coming to fruition. Europe’s economy is now booming, fuelling business and leisure tourism across the region and this is great news for hoteliers.
Whilst Juncker has cited the EU’s newfound unity after Britain’s vote to leave as being a catalyst for the economic recovery, it is more likely due to the stand out performance of countries in the CEE, which is reflected in the health of their hotel industry,” said Pablo Alonso, CEO of HotStats.
For hotels in Prague, an 11.1% year-on-year increase in RevPAR this month was fuelled by a 3.8 percentage point increase in room occupancy, to a lofty 89.0%, as well as a 6.3% increase in achieved average room rate to €114.04.
Profit & Loss Key Performance Indicators – Prague (in EUR)
October 2017 v October 2016
- RevPAR: +11.1% to 101.51 euros
- TrevPAR: +10.7% to 155.46 euros
- Payroll: +0.1 pts to 19.4%
- GOPPAR: +13.5% to 79.97 euros
In addition to the growth in Rooms Revenue this month, increases in Other Revenue enabled hotels to record a 10.7% increase in TrevPAR, to 155.46 euros.
And despite a 0.1 percentage point increase in Payroll, to a meagre 19.4% of total revenue, hotels in the capital of the Czech Republic achieved a GOPPAR increase of 13.5% to €79.97. This is equivalent to a profit conversion of 47.7% of total revenue.
“Economic growth in the Czech Republic is expected to reach 4.3% in 2017, up from 2.4% in 2016 Furthermore, according to Prague City Tourism, for the year to September 2017, the number of overnight stays at hotels in Prague increased by 7.2% year-on-year.
Whilst the increase in international visitors was recorded at +6.8%, domestic visitation was up by +11.1%, illustrating the high disposable income levels and propensity to travel of the Czech population, which, again, is extremely positive for Prague hotels,” added Pablo.
For hotels in Warsaw, top and bottom line performance at city hotels was driven by key events at the Warsaw Expo, including approximately 160,000 visitors to the Warsaw Moto Show and over 45,600 visitors to the World Travel Show.
As a result of the high demand levels, hotels in the Polish capital were able to record an 11.5% increase in achieved average room rate, to €118.90, which offset the 0.7 percentage point decline in room occupancy, to 81.4%.
Profit & Loss Key Performance Indicators – Warsaw (in EUR)
October 2017 v October 2016
- RevPAR: +10.6% to 96.81 euros
- TrevPAR: +9.6% to 146.98 euros
- Payroll: – 1.2 pts to 20.8%
- GOPPAR: +13.3% to 71.74 euros
The 10.6% year-on-year growth in Rooms Revenue contributed to the 9.6% increase in TrevPAR. And in line with hotels in Prague, which record some of the lowest labour levels of all hotel markets across Europe, Payroll at hotels in Warsaw fell by 1.2 percentage points, to just 20.8% of total revenue.
For hotels in the Polish capital, the 13.3% year-on-year increase in profit per room in October contributed to the 9.9% year-to-date increase in GOPPAR and means hotels in Warsaw are on course for another great year of bottom line growth in 2017 following the increases in 2015 (+5.4%) and 2016 (+11.7%).
Vicky is the co-founder of TravelDailyNews Media Network where she is the Editor-in Chief. She is also responsible for the daily operation and the financial policy. She holds a Bachelor's degree in Tourism Business Administration from the Technical University of Athens and a Master in Business Administration (MBA) from the University of Wales.
She has many years of both academic and industrial experience within the travel industry. She has written/edited numerous articles in various tourism magazines.
