EUROPEAN CHAIN HOTELS
MARKET REVIEW
OCTOBER 2016
Profit Per Room at Dublin Hotels is Fastest Growing in Europe
Whilst year-on-year growth has slowed slightly this month profit
performance at hotels in Dublin remains the fastest growing in Europe,
achieving a 25.5% increase for year-to-date 2016, according to the
latest data from HotStats.
Despite a 1.6% increase in payroll on a per available room basis, the
overall 8.6% saving in overheads helped drive the 26.4% increase in
profit per room this month, to €73.76.
The year-to-date growth in the city builds on profit increases in both
2014 (+9.2%) and 2015 (+33.5%) and means profit per room at Dublin
hotels has achieved a 77.4% increase in the 36 months to October
2016, to €83.95.
Growth Continues at Moscow Hotels
Despite Economic Uncertainty
The limited number of additions to hotel stock in recent years as well as
the broad appeal of the city has enabled hotels in Dublin to maintain
strong room occupancy levels, which, in turn, has allowed for room rate
to be consistently leveraged, exemplified by the 12.3% increase in
achieved average room rate this month, which has included rate growth
in the corporate (+5.8%) and leisure (+9.4%) segments.
As a result of the movement in top line performance, hotels in the Irish
capital have achieved a 16.8% year-to-date increase in achieved
average room rate, which has driven a 17.2% increase in RevPAR
(Revenue per Available Room), to €142.34. The consistent growth in
revenue, as well as cost savings has enabled profit conversion to
increase to 36.8% of total revenue for year-to-date 2016.
Cost Savings Drive Profit Growth at
Hamburg Hotels
Further to the heavy decline in profit performance at the onset of the
economic downturn in Russia in 2015, hotels in Moscow have now
achieved a 13.2% year-on-year increase in GOPPAR (Gross Operating
Profit per Available Room) in the 12 months to October 2016 to €35.22.
The remarkable recovery is in spite of some uncertainty as to whether
the Russian economy remains in recession, but has been fuelled by
tactical revenue management.
Whilst rate has been sacrificed in the leisure segment in order to drive
volume, resulting in a 10.6% decrease in this measure for year-to-date
2016, this has been offset by rate growth in both the corporate (+5.5%)
and residential conference (+2.4%) segments.
This has resulted in a 12.0% increase in RevPAR in the ten months to
October 2016, which has been supported by increases in ancillary
revenues, including Food & Beverage (+4.7%) and Conference &
Banqueting (+7.1%), to achieve a total revenue of €86.93 per available
room.
Hotels in Hamburg achieved a 26.4% increase in profit per room this
month on the back of an 8.0% increase in total revenue as astute
management effectively slashed costs.
Despite also relying heavily on third party intermediaries to drive
volume, illustrated by the 18.7% year-on-year increase in Rooms Costs
of Sales for year-to-date 2016, profit per room so far this year has
increased by 17.2% to €36.18.
In addition to a 10.1% increase in RevPAR, which was driven by yearon-year growth in both room occupancy (+6.2 percentage points) and
achieved average room rate (+2.1%), hotels in Hamburg achieved an
increase in ancillary costs, including Food & Beverage Revenue
(+3.4%), Conference & Banqueting (+3.6%) and Leisure (+23.7%) on a
per available room basis.
The month of October 2016
But it was in cost savings where real gains were made, which included
a reduction in Rooms Expenses (-4.3%) and Food & Beverage
Expenses (-16.3%), as well as Undistributed Operating Expenses, such
as Admin & General (-18.1%) and Property & Maintenance (-29.8%).
European City Markets achieved REVPAR, TREVPAR and GOPPAR October 2016
HotStats European Chain Hotels Market Review
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EUROPEAN CHAIN HOTELS
MARKET REVIEW
OCTOBER 2016
Editor’s Notes
The hotels profiled in this report are drawn from
the HotStats database and reflect the portfolios
and distribution of the hotel chains that we
survey and which operate primarily in the fullservice sector.
Please note: The data samples are reviewed and
rebased each year to reflect the changes in the HotStats
survey base. As a result, performance ratios published
last year may differ from those contained within this
report.
Occupancy (%) - Is that proportion of the bedrooms available
during the period which are occupied during the period.
Average Room Rate (ARR) - Is the total bedroom revenue
for the period divided by the total bedrooms occupied during
the period.
Room Revpar (RevPAR) - Is the total bedroom revenue for
the period divided by the total available rooms during the
period.
Total Revpar (TRevPAR) - Is the combined total of all
revenues 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.
GOP PAR - Is the Total Gross Operating Profit for the period
divided by the total available rooms during the period.
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hotel performance, revenue, cost and profit statistics providing the deepest insight available into hotel operations.
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©HotStats Limited 2016 Unless otherwise attributed, all material in this press release is the copyright of HotStats Limited.
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BRIEFING DATA
European Chain Hotels - Market Review
Currency: € Euros
The month of October 2016
Calendar year to October 2016
Twelve months to October 2016
Occ %
ARR
RevPAR
TRevPAR
Payroll %
GOP PAR
Occ %
ARR
RevPAR
TRevPAR
Payroll %
GOP PAR
Occ %
ARR
RevPAR
TRevPAR
Payroll %
GOP PAR
Dublin
87.1
170.91
148.87
226.37
28.1
95.16
85.4
166.62
142.34
212.79
28.8
86.49
84.3
163.28
137.60
211.78
29.2
83.95
Dublin
Hamburg
84.0
153.81
129.16
182.09
27.3
73.76
80.2
151.98
121.92
171.76
29.6
63.09
79.4
152.30
120.92
172.50
29.4
63.49
Hamburg
Moscow
77.7
81.03
62.94
101.16
22.9
48.37
73.2
74.71
54.65
86.93
26.6
36.18
71.1
75.05
53.34
85.82
26.6
35.22
Moscow
The month of October 2015
Calendar year to October 2015
Twelve months to October 2015
Occ%
ARR
RevPAR
TRevPAR
Payroll %
GOP PAR
Occ%
ARR
RevPAR
TRevPAR
Payroll %
GOP PAR
Occ %
ARR
RevPAR
TRevPAR
Payroll %
GOP PAR
Dublin
88.9
152.24
135.39
205.65
28.5
82.35
85.1
142.71
121.43
186.71
30.6
68.89
83.7
139.46
116.68
185.48
31.2
66.37
Dublin
Hamburg
77.8
150.70
117.26
168.64
29.0
58.35
78.9
143.73
113.38
162.61
30.3
56.99
78.8
143.73
113.28
164.37
29.8
58.54
Hamburg
Moscow
71.9
79.97
57.50
93.66
23.2
41.77
68.0
71.77
48.79
78.03
27.8
30.88
66.8
72.45
48.39
78.17
27.4
31.11
Moscow
Movement for the month of October
Movement for the calendar year to October
Occ Change
ARR
Change
RevPAR
Change
TRevPAR
Change
Payroll
Change
GOP PAR
Change
Occ Change ARR Change
Dublin
-1.8
12.3%
10.0%
10.1%
0.5
15.6%
0.3
Hamburg
6.2
2.1%
10.1%
8.0%
1.7
26.4%
Moscow
5.8
1.3%
9.5%
8.0%
0.2
15.8%
Movement for the twelve months to October
RevPAR
Change
TRevPAR
Change
Payroll
Change
GOP PAR
Change
Occ Change
ARR Change
RevPAR
Change
TrevPAR
Change
Payroll
Change
GOP PAR
Change
16.8%
17.2%
14.0%
1.8
25.5%
0.6
17.1%
17.9%
14.2%
2.1
26.5%
1.3
5.7%
7.5%
5.6%
0.7
10.7%
0.6
6.0%
6.7%
4.9%
0.4
8.5%
Hamburg
5.2
4.1%
12.0%
11.4%
1.2
17.2%
4.3
3.6%
10.2%
9.8%
0.8
13.2%
Moscow
Dublin