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Hotels in Europe Raise Their Profits in April 2018
The second month of spring was definitely a good one for the hospitality industry of Europe. Hotels across the region managed to increase their profit per room by fantastic 18.9%. TrevPAR added 8.5% in April and reached 178.41 euro thanks to the growing room revenues of 7.7% and better revenues in non-room departments, such as conference & banqueting (+22.9%) and food & beverage (+10.7%).
This growth was mostly supported by an increase in the average room rate of 5.4% to 159.92 euro and the growing occupancy (+1.6% to 73.7% in total). Commercial sector was one of the main moving forces of April’s successful results. The increases in the residential conference and corporate segments estimated +9.1% and +11.1% respectively. The growth of the individual leisure segment estimated 4.2% and of the group leisure segment – 9.5%.
Here are the key performances of European hotels in April 2018. RevPAR added 7.7% to 117.79 euro in total, TrevPAR grew by 8.5% to 178.41 euro, and the increase of GOPPAR reached +18.9% to 62.84 euro. Some cities performed exceptionally well in April. For example, hotels in Budapest enjoyed a solid increase in profit of 15.8%. Local hoteliers achieved such a fantastic result thanks to increased average room rate. As there is an obvious undersupply of hotels in Budapest, local hoteliers are free to increase room rates. Even though the Hungarian capital experienced a decline in room occupancy of 2.4% to 81.5% in total, an increase in achieved room rate of 8.3% helped all key metrics grow. Not only room revenues but also non-room departments posted growth in April, helping TrevPAR enjoy an increase of 9.8% to 151.22 euro.
Experts foresee bright future for the hospitality industry of Hungary, especially for hotels in Budapest. The country becomes increasingly popular with tourists, and the majority of them visit the country’s capital, Budapest. Last year, the increase in the number of international guests estimated 7.9%. This helps hoteliers to boost their performance.
Hotels in Brussels were also among best performers in April 2018. The Belgian capital has definitely recovered from the negative consequences of the terrorist attacks that took place in October 2016. Brussels hotels enjoyed a 7.7% increase in room occupancy. Together with a 6.2% increase in the average room rate, local hotels had their RevPAR grow by 18.1% to 124.27 euro. The April’s average room rate of 161.73 euro is also the highest rate on record in recent years. The year-on-year increase in the gross operating profit or GOPPAR estimated 65.9% to 56.24 euro.
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