Despite a 1.5 percentage point decline in room occupancy, hoteliers in Istanbul were able to successfully record a 17.6% increase in achieved average room rate to €193.97. In contrast, in addition to increases in achieved average room rate performance in both Paris (+6.1%) and Budapest (+8.4%), these capital cities also successfully recorded room occupancy increases of 7.7 percentage points and 4.9 percentage points, respectively, which contributed to significant increases in Revenue per Available Room (RevPAR).
Paris hosted a number of key events throughout the month of November, including the Tennis Masters, which generated significant demand for hotel accommodation and resulted in the French capital achieving a room occupancy of 81.3% at an average room rate of €204.06, the highest achieved rate recorded this month of the European cities polled.
Despite a relatively weak room occupancy performance in the Hungarian capital, at just 65.5%, an increase in demand from the conference sector helped to boost the achieved average room rate for hoteliers in Budapest to €91.89 from €84.77 during the same period in 2010.
Conversely, profit per room in London declined for the third time in 2011, by 2.5% to €114.69. Whilst a 1.8 percentage point decline in room occupancy led to a drop in both rooms revenue and total revenue performance levels, to €155.72 and €222.93, respectively, profit levels in the UK capital were further impacted by rising costs.
“For the first time this year we have seen a consecutive month-on-month decline in profit per room in the London four and five-star hotel market. Whilst we fully anticipate the London market to end the year ahead of 2010, the recent sustained lull in performance levels confirms there has been a softening in demand,” said David Bailey, deputy managing director, TRI Hospitality Consulting.
Click here ( Adobe Acrobat PDF file) to download the complete article including graphs.
TRI Hospitality Consulting provides a wide range of services to clients in the hotel sector. It has offices in London, Dubai and Madrid.
For more information contact:
Jonathan Langston, managing director 020 7892 2201
David Bailey, deputy managing director 020 7892 2202
Charles Scudamore, director 0207 892 2211
Logos, product and company names mentioned are the property of their respective owners.