News Source:
European hotels enjoyed a positive start of last quarter of 2019
News Source/Courtesy:

Courtesy/News Source:

Mainland Europe hoteliers celebrated a positive start to the last quarter of 2019. October marked the second consecutive month—and third month of the year—of positive growth in profit per available room compared to the same period last year, according to latest data.

A strong top line drove the 1.2% YOY increase in GOPPAR. In the rooms department, a combination of occupancy (up 1.0 percentage points YOY) and average rate (up 0.1% YOY) led to a 1.5% increase in revenue per available room.

This positive trend was replicated across other revenue centers. Specifically, F&B revenue, which achieved 1.0% YOY growth on a per-available-room basis, while Conference and Banqueting increased by 1.2% YOY. Consequently, October 2019 TRevPAR was 1.9% higher than the same month of last year.

Expenses were also on the rise in October. Labor costs per available room climbed by 1.7% while overheads surged by 3.2%, on a YOY basis. Because of this flow-through erosion, YTD 2019 profit per available room is still 1.7% below its 2018 counterpart.

Profit conversion in Mainland Europe was recorded at 40.1% of total revenue.

Lisbon saw great results in October, recording an increase in profit per available room for the sixth time this year. This 21.8% YOY GOPPAR growth marks the fourth double-digit profit boost in 2019 for the Portuguese capital.

Revenue per available room in the rooms department achieved a 15.5% increase, fueled by a 5.8 YOY percentage point surge in occupancy and a 7.6% YOY rise in average rate. Ancillary revenue also expanded during this period, led by F&B (up 25.1% YOY) and Conference and Banqueting (up 48.4% YOY). As a result, total revenue per available room placed 18.0% above the same month of last year.

Labor costs and overheads moved in the same direction as revenue, recording YOY increases of 10.6% and 14.1%, respectively and on a per-available-room basis. Despite this, YTD profit per available room is 11.8% higher in 2019 than it was in the previous year.

Profit conversion in Lisbon was recorded at 47.3% of total revenue.

Conversely, October was a month to forget for Vienna hoteliers, who suffered their reatest decline in profit per available room of the year. GOPPAR in the city fell by 30.9% YOY, its second consecutive double-digit drop in 2019.

The fourth quarter started in a depressive state: occupancy (down 8.8 percentage points) recorded its deepest 2019 YOY plunge and average rate (down 7.3% YOY) fell for the first time since May 2018. This resulted in a staggering 16.8% YOY contraction of RevPAR.

Poor revenue results in F&B (down 19.3% YOY) and Conference and Banqueting (down 32.0% YOY) pulled down ancillary revenue, which decreased by 16.5% YOY. Thus, total revenue per available room experienced a 16.7% YOY fall.

Hoteliers in Vienna managed to put into effect some cost control strategies in the face of the gloomy top-line results. Labour costs per available room decreased by 5.0% YOY and overheads did so by 3.4%. As a result, YTD 2019 GOPPAR is still 4.2% higher than the same period of last year.

Profit conversion in Vienna was recorded at 31.2% of total revenue.

If you wish to receive new articles related to European hotels enjoyed a positive start of last quarter of 2019 enter your email address in the field below and subscribe:

Fill the numbers here
If not readable, please refresh.

News Source:

You Might Also Like

Fill the numbers here
If not readable, please refresh.

-: Disclaimer :-

This article has been aggregated from and they maybe/are the copyright owners of the same. If you are the Author/Copyright owner of this article and want us to remove the same then send an email to so that we can delete it immediately. We sincerely regret and apologies for any inconvenience caused to you due to the same. Though it is your decision but please take note that the link to your website and the article have been given above, within and on the bottom of the article.

Popular Posts

Hoteliers In Limelight

Voting Poll