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Hotels in Berlin Celebrate Growth of Their Profits

July 2013 was a great month for hotels in Berlin as they managed to increase their profit per available room by 25%. Surprisingly, the growth of profit was reached thanks to non-rooms revenues and more efficient cost management.

Even though hotels in Germany managed to increase their profits, the reason for that is not in the increased number of visitors. Actually, both average room rate (ADR) and occupancy decreased in June. Consequently, RevPAR fell by 1% to 78.8 euro. On the other hand, revenues from meeting rooms grew by 40%, adding almost 6 euro to revenues per available meeting room. That was also the main driving force for the growth of total revenue (+9.6%). Other driving forces were food and beverage revenues. Here operating profit grew almost three times if compared to July 2012 and estimated 10.40 euro in total. At the same time, hotels in Berlin managed to reduce their general costs by 8.8%. Combined with the previously mentioned profit growth in selected areas, hotels in the German capital managed to add 7.65 euro to their profit per available room. That is the increase of 25% comparing to July 2012.

Just like German hoteliers, hotels in Barcelona have a reason to be in a good mood. Thanks to hot July sun, hotels in Barcelona managed to add +19.4% to their profits. Here the gain was reached thanks to increase of the average daily rate by 7.4 euro, meeting room rentals (+71.5%) and food and beverage profit gain by 13%.

05.09.2013

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