Hotels in Barcelona achieved the 12. 4% year-on-year increase in revenue per room in January, ongoing the strong profit growth attained in the Catalan capital in 2016, according to the latest data from HotStats.
Barcelona was among the top performing hotel markets within Europe in 2016 recording the year-on-year profit increase of nine. 6%, which was driven by a six. 7% increase in RevPAR (Revenue for each Available Room) to € 165. 35, led by a 7. 1% increase in achieved average room price.
Whilst occupancy ongoing to slide in January, dropping by 0. 7 percentage factors year-on-year, this was more than cancelled away by a 7. 7% increase in accomplished average room rate during the exact same period, to € 164. seventy, fuelling a 6. 3% embrace RevPAR for the month.
As well as the increase in Rooms Revenue, hotels within Barcelona recorded growth in Non-Rooms Revenue departments, including Food and Drink (+13. 2%) and Conference plus Banqueting (+20. 8%) on a per obtainable room basis.
Due to rising revenues and falling expenses, hotels in Barcelona have documented a 9. 4% increase in revenue per room in the 12 months in order to January 2017, to € 120. 60 per available room, similar to a profit conversion of 45. 2% of total revenue.
Brussels Fighting Back After Torrid 2016
Following the bad performance in 2016, as a result of terrorist attacks in the city, 2017 provides started positively for hotels within Brussels recording a 4. 4% increase profit per room for your month.
The attacks upon Brussels in March 2016 had been the deadliest act of terrorism in Belgium’ s history. Not surprisingly, during the aftermath hotel performance from Brussels hotels plummeted, illustrated by 39. 4% year-on-year decline within profit per room in the a year to January 2017.
The impact on demand at resorts in the Belgian capital has been the majority of prevalent in the individual and team leisure segments, as the average resort polled in Brussels has accommodated over 2, 500 fewer leisure-related roomnights in the 12 months to The month of january 2017.
In the last a year, declines were also recorded within rate in both the individual (-3. 9%) and group leisure (-4. 0%) segments, contributing to the overall 2 . 1% drop in achieved average space rate.
However , a 3 or more. 6 percentage point increase in area occupancy in January helped in order to offset the 1 . 3% drop in achieved average room price. As a result, hotels in the Belgian funds recorded a 5. 3% embrace RevPAR for the month to € 75. 52, supporting the development in profit per room.
Profit Crashes in Budapest Despite Revenue Growth
Profit per room at resorts in Budapest fell by thirteen. 3% this month, which was regardless of a 5. 7% increase in RevPAR, as escalating costs hit hoteliers in the Hungarian capital.
Hotels in Budapest were able to effectively record increases across a number of income streams this month, including Areas (+5. 7%) and Food and Drink (+1. 0%) on a per available area basis, which contributed to the 1 ) 8% year-on-year growth in TrevPAR (Total Revenue per Available Room) to € 80. 96.
However , cost increases within Payroll (+5. 5%) and Expenses (+2. 3%) wiped out any embrace revenue and led to a decrease in profit per room, that was recorded at just 18. 8% associated with total revenue.
The particular performance of hotels in Budapest this month is further proof that there is a widening chasm in between RevPAR and other key metrics recommending the industry’ s key efficiency indicator is no longer the best, single way of measuring the health of the hotel sector.