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Hotels in Berlin Increase Their Revenues in March 2017

The start of spring was very successful for hotels in Berlin. According to the data provided by HotStats, hotels in the capital of Germany managed to gain their revenues by 7.0%, reaching an incredible increase in profit per room by 29.0%.

Berlin hotels experienced growth of all main metrics in March 2017. The occupancy added 1.4% and average daily rate grew by 5.0% to 147.83 euro. The growth of these important metrics helped boost RevPAR that added 7.0%. Moreover, reduction of departmental costs helped hotels in the German capital gain extra profit from food and beverage sale (+43%), room services (+12.6%), and minor operating department (+5.6%). Thanks to a reduction in payroll of 1.4%, the increase in profit per room skyrocketed to 29%. Naturally, such gain contributed to an increase of Q1 profit that estimated 11% or 59.99 euro.

What are other best performing cities in Europe? Milan hotels seem to be back on track after challenging 2016. Hotels in the Italian fashion capital have almost reached the results of 2015 when the city was full of EXPO Milano guests. The year-on-year occupancy increased by 5.0% in Q1 2017 to 70.9% in total. The achieved average room rate fell down by 0.6%, but thanks to strong occupancy RevPAR added 6.9% to 128.12 euro, which is better than the historic performance of Q1 2015 with the result of 118.70 euro. However, the profit of the EXPO year (2015) is somewhat higher than current results, so Milan hotels still have to put some effort to catch up.

Finally, hotels in Prague also posted positive March results, but a 10.6% growth in profit per room was mostly driven by the commercial segment. The growth was noticeable in the residential conference (+9.4%) and corporate (+8.1%) segments, while individual leisure and group leisure segments posted declines of 9.3% and 14.4% respectively.

18.05.2017

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