Tags: Industry data , Trends , Hotels

Industry data: TRI HotStats - monthly European hotel figures

by Angela Frewin, Thursday 9th August 2007 12:54

Hotels in Paris, Moscow and London were the only ones to boost revenue per available room and profitability in June of the 10 European cities listed in the monthly Europe HotStats survey from TRI Hospitality Consulting.

Parisian hotels achieved a massive 51.4% boost to income before fixed charges per available room( IBFCpar) to €160.58 thanks to a 35.1% rise in revpar (the biggest rise in the survey) and a 5.1 percentage point fall in payroll costs..

However, Moscow hotels remained the most profitable as IBFCpar soared by 20.3% to €198.43. Although Moscow’s traditionally low payroll costs crept up by 3.6 points, average room rate rocketed by 34.4%.

London clocked in as the third most profitable city and the second best for revpar, which rose by 20.1% and 13.7% respectively.

Of the remaining seven cities, all but Vienna suffered double-digit drops in profitability.

The most dramatic falls were seen in Munich, Berlin, and Hamburg (down by 28.9%, 28.8% and 27.7% respectively). This stemmed partly from the boost to business last year when Germany hosted the World Cup.

Although room rate fell across all three cities this June, occupancy rises were the highest in the survey.

“All three German cities showed improvements in occupancy this June, suggesting that normal business demand was interrupted during last year’s World Cup,” commented Jonathan Langston.

“But higher occupancy alone wasn’t enough to stem the sharp falls in profit caused by lower rates and a high payroll burden.”

The figures are compiled each month by Tri Hospitality Consulting.

JUNE 2007

Amsterdam	2007	2006	Movement
Occupancy	86.3%	89.3%	-2.9 points
Room rate	€180.39	€193.27	-6.7%
Revpar	€155.76	€172.54	-9.7%
Payroll %	27.1%	25.7%	+1.3 points
IBFCpar	€99.43	€111.08	-10.5%

Berlin	2007	2006	Movement
Occupancy	78.5%	67.6%	+10.9 points
Room rate	€145.15	€223.49	-35.1%
Revpar	€113.87	€151.01	-24.6%
Payroll %	28.7%	24.5%	+4.2 points
IBFCpar	€69.35	€97.39	-28.8%

Budapest	2007	2006	Movement
Occupancy	78.5%	77.6%	+0.9 points
Room rate	€117.36	€121.51	-3.4%
Revpar	€92.11	€94.31	-2.3%
Payroll %	28.3%	21.9%	+6.4 points
IBFCpar	€51.89	€67.36	-23%

Hamburg	2007	2006	Movement
Occupancy	75.3%	68.7%	+6.6 points
Room rate	€112.43	€154.72	-27.3%
Revpar	€84.67	€106.33	-20.4%
Payroll %	28.6%	25.1%	+3.5points
IBFCpar	€51.18	€70.77	-27.7%

London	2007	2006	Movement
Occupancy	89%	88.4%	+0.6 points
Room rate	€216.97	€192.12	+12.9%
Revpar	€193.05	€169.74	+13.7%
Payroll %	22.5%	24%	-1.5 points
IBFCpar	€142.16	€118.33	+20.1%

Moscow	2007	2006	Movement
Occupancy	75.1%	78.6%	-3.5 points
Room rate	€242.82	€180.68	+34.4%
Revpar	€182.36	€141.93	+28.5%
Payroll %	19.3%	15.7%	+3.6 points
IBFCpar	€198.43	€164.91	+20.3%

Munich	2007	2006	Movement
Occupancy	78.9%	66.2%	+12.7 points
Room rate	€121.78	€163.35	-25.4%
Revpar	€96.14	€108.14	-11.1%
Payroll %	32.3%	26.4%	+5.9 points
IBFCpar	€51.02	€71.79	-28.9%

Paris	2007	2006	Movement
Occupancy	88.9%	83.5%	+5.4 points
Room rate	€272.67	€214.86	+26.9%
Revpar	€242.48	€179.46	+35.1%
Payroll %	30%	35.1%	-5.1 points
IBFCpar	€160.58	€106.09	+51.4%

Prague	2007	2006	Movement
Occupancy	71.9%	84.2%	-12.3 points
Room rate	€149.25	€156.50	-4.6%
Revpar	€107.36	€131.75	-18.5%
Payroll %	19.2%	16.3%	+2.9 points
IBFCpar	€86.57	€109.47	-20.9%

Vienna	2007	2006	Movement
Occupancy	81.9%	83.4%	-2.4 points
Room rate	€167.39	€163.34	+2.5%
Revpar	€137.13	€137.77	-0.5%
Payroll %	36.5%	35.1%	+1.4 points
IBFCpar	€71.37	€76.58	-6.8%

View the figures for May 2007 here >>
View the figures for April 2007 here >>
View the figures for March 2007 here >>
View the figures for February 2007 here >>
View the figures for January 2007 here >>

View the figures for December 2006 here >>
View the figures for December 2005 here >>

Definition of terms

Occupancy is that proportion of the bedrooms available during the period which are occupied during the period.
Room rate is the total bedroom revenue for the period divided by the total bedrooms occupied during the period.
Revpar is the total bedroom revenue for the period divided by the total available rooms during the period
Payroll % is the payroll for all hotels in the sample as a percentage of total revenue
IBFCpar is the Income Before Fixed Charges shown per available room

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