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European Hotels Posted Flat Results in November

November 2013 was rather a flat year for many European hoteliers. The survey made by HotStats shows that such popular destinations as Frankfurt, Prague, and Barcelona had mostly flat RevPAR (revenue per available room) results close to the ones of November 2012. At the same time, GOPPAR (gross operating profit per available room) was more diversified and varied depending on destination.

For example, hotels in Barcelona had their occupancy grow by 2.6% to the total of 66%, but that was reached thanks to fall in average room rate. As result, the growth of RevPAR was just 0.1% comparing to the same period of 2012 and estimated €92. Total revenue per available room (TrevPAR) was also almost flat and estimated €142.45 (year-on-year decrease of 0.2%). At the same time, decrease in operation costs made departmental operating profit per available room (DOPPAR) add 3.4% to the level of €82.75. GOPPAR of hotels in Barcelona added 8.5% to the level of €51.83.

Hotels in Prague, capital of Czech Republic, also managed to turn their flat RevPAR (the growth in November 2013 estimated just 0.3%, €51.5 in total) into significant growth of GOPPAR – 13% to €33.5. Prague hotels saved on sales and department operating expenses, thanks to which a drop of TrevPAR of 2.5% was balanced by growth of DOPPAR of 6.2%.

Hotels in Frankfurt posted mostly flat RevPAR (+0.1% to €100.94) and TrevPAR (+0.3% to €163.5) results. However, GOPPAR here fell by 3.8%. The main reason for that was growth of expenses – property & maintenance costs added 7.8% and sales and marketing costs added 13.5%.

Berlin, another major European destination, had declines of RevPAR of 0.8% to €93.42 in November despite slight increase of occupancy of 0.3% to 77.8% in total. However, thanks to growth of revenues in food (+20.4%) and meeting rooms spheres (+36.5%), TrevPAR there added 7.2% to €181.81.

14.01.2014

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