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Hotels in Budapest Post Highest Profit Across Europe in June 2017

The first month of summer was positive for the European hospitality industry in general. Local hotels managed to boost their GOPPAR (gross operating profit per available room) by 3.6%, but the average result is no match to Budapest hotels that were able to reach the year-on-year profit growth of 27.1% - a truly fantastic achievement.

The average occupancy in Europe was slightly lower than a year ago (-0.4%) and fell to the level of 78.7%, but the decline was totally offset by the increase in the average daily rate (ADR) by 4.9%. The ADR estimated 180.04 euro, helping RevPAR add 4.4% in June 2017 to 141.75 euro. Not only Room Revenue showed a positive shift but also Food and Beverage revenue. It added 2.9% to 36.61 euro. Thanks to that, TrevPAR (total revenue per available room) grew by 2.9% in June 2017 to 208.84 euro. GOPPAR added the 3.6% mentioned above to 85.55 euro. This data proves that European hotels had a powerful first half of 2017. The forecast for the year is positive, especially for such popular destinations as France, Spain, Germany, and Italy.

Budapest hotels were among the top performing markets in June 2017. They managed to reach the growth of GOPPAR of 27.1% compared to June 2017. The increase of RevPAR is no less impressive – 23.4%. The occupancy reached a peak level of 85.3%, and such a high occupancy allowed Budapest hotels to raise ADR. The metric grew to 142.41 euro, which is an increase of 17.6%.

The Hungarian capital greeted many leisure visitors during the first month of summer, but that was not the only reason for such a success. Many business travelers visited Budapest as well as the city’s popularity as a MICE destination is growing. The corporate segment demand added 25.9% in June. Profit conversion is worth a separate mention – 47.7% is a fantastic result. As there’s a definite lack of supply, hotels in Budapest will keep their highly successful business. They have managed to boost RevPAR by 46% over the last 36 months.

June was also a successful month for Paris hotels. The increase of GOPPAR estimated 8.1%, while RevPAR added 6.3% to 337.85 euro. After terror attacks of 2016, strikes and flooding, hotels in Paris were in quite a miserable state with the drop of GOPPAR of 40.7%. The hospitality industry of the French capital recovers slowly, and the year-on-year profit increase of 8.7% only proves that.

06.08.2017

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