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Optimistic Results of Hotels in Milan and Prague in October 2014

Hotels in Milan and Prague both posted tremendous results for the month of October, reaching the growth of gross operating profit per available room (GOPPAR) by 37.5% and 22.6% respectively.

Hotels in Milan reached sufficient growth in almost all main figures. The growth of average room rate (ARR) estimated 16.2%, but that was reached together with falling occupancy, which, however, lost only 0.9%. Thanks to such a big growth of room rate, revenue per available room (RevPAR) added 17.4%. Positive results were also reached in non-room revenues, such as profit from hiring meeting rooms (+114.5%) or profit from selling food and beverages (+16.9% and +15.8% respectively). They helped total revenue per available room (TRevPAR) add 19.8% in October.

The capital of Czech Republic had another successful month. Occupancy added +5.1% and room rate increased by 11.0%. Naturally, this made RevPAR grow and it was 18.3% higher than during the same period of 2013. Non room revenues helped TRevPAR add 13.4% to 129.21 euro.

However, not all destinations across Europe posted such positive results. For example, Cologne hotels posted declines in all key indicators. Occupancy lost 7.7%, and coupled with falling ARR of 31.5%, it made RevPAR lose 38.1% compared to the same period of 2013. Experts also mention a significant increase in travel agent commission that added 25.5% compared to October 2013. The decrease of TRevPAR estimated 31.3%, and GOPPAR lost 45.4% to 51.36 euro.

01.12.2014

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