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Continuous Profit Growth of Barcelona Hotels

News In 2016, the Catalan capital enjoyed the strong growth of profit, and the situation is seemed to continue in 2017. Hotels in Barcelona enjoyed a powerful start of the year, with January profit increase reaching 12.4% year-on-year.

Barcelona hotels ended the previous year among best performers in Europe and enjoyed the growth of the average room rate of 7.1%, RevPAR of 6.7%, and profit growth of 9.6%. The growth was reached in non-room departments as well.

Not all European destinations could reach comparable results. For example, hotels in Brussels had to fight with problems caused by the terrorist attacks in the city in 2016. The attacks in March had a devastating effect on the hospitality industry of the city, causing the decline of profit of 39.4% year-on-year. The beginning of 2017 adds some optimism as local hotels increased their profit by 4.4% in January 2017. The decline is most notable in leisure segments. For example, for the period of January 2016 – January 2017 an average hotel in Brussels sold 2,500 fewer room nights.

Budapest hotels, in their turn, recorded quite an interesting result. The profit of hotels in the Hungarian capital was down despite the growing revenue. Local hotels recorded the growth of RevPAR of 5.7% and the decline of profit of 13.3% in January. Room bookings were the main moving force for the growth of RevPAR, but increased payroll and overhead costs diminished the revenue and caused the decline in profit per room.


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