Europe Hotels Approach Year of Continuous Profit Growth

Seven trending hotel news stories that will impact your hotel Revenue Strategy.

1. Rooms revenue offsets ancillary spend declines in Europe 

March 2018 saw hotels in Europe report their eleventh consecutive month of profit growth, despite a drop in non-room revenue. The year-on-year increase in profit was just 0.7% delivering a gross operating profit per available room of €50.04.

While revenue was down in F&B, conferencing and banqueting, a 2.7% increase in rooms revenue helped shore up results. Hotels also saw a 3.2% year-on-year increase in achieved average room rate, to €150.12, in spite of faltering room occupancy levels which fell by 0.3-percentage points, to 68.5%.

Total revenue per available room at hotels in Europe continued to grow, albeit at a slower rate, up 1.1% year-on-year, to €159.40 or up 3.1% for Q1 2018.

Full story at TravelDailyNews.

2. RevPAR gains at hotels in Middle East and Africa

Hotels in the Middle East and Africa saw RevPAR rise 3.3% in March 2018 to $129.62 following a 4.3-percentage point gain in occupancy to 74%, this despite a 2.6% drop in achieved average room rate to $175.24. TrevPAR was up 1.6%, to $223.64.

Profit at hotels in the region climbed to achieve a GOPPAR of $96.95 in March, with the gains attributed in part to cost savings in overheads and payroll, according to the latest data from HotStats.

Full story at HospitalityNet.

3. Wet weather dampens UK hotel profits

The UK’s wettest March in a decade dampened hotel results as unseasonal dips in temperature led to dips in profit. According to HotStats, March saw a 1.4% drop in TrevPAR to £126.69.

Hotels recorded a 0.6% drop in occupancy to 75.2% and a 0.3% decline in achieved average room rate. Profits were further hit by an increase in costs, as the cold weather sent heating bills skywards.

Full story at Buying Business Travel.

4. UNWTO publishes report on EU tourism trends 

The World Tourism Organization in cooperation with the European Commission has published a new report on ‘European Union Tourism Trends’, in which it details the major social and economic benefits of tourism for the 28 countries in the European Union.

EU destinations welcomed 538 million international overnight visitors in 2017, 40% of the world total. Tourism accommodation in the EU provides more than 3 billion nights a year.

Full story at TravelDailyNews.

5. $147 billion worth of tourism projects underway in GCC

The latest data from BNC Network has counted 1,156 hospitality projects under development in the GCC, including 724 hotel projects worth $78 billion, 140 resort hotel projects worth $50 billion and 292 hotel apartment projects worth $19.5 billion.

Of the 1,156 projects, 492 are in progress, including tender and under construction, while 210 are in the planning, concept and design stage.

Full story at Hotel News ME.

6. Revenue up, occupancies dip at UK serviced apartments

Q1 results from STR for the UK serviced apartments sector showed a 3.5% increase in Average Daily Rate to £133.87, and a 1.9% growth in RevPAR to £100.31. However, occupancy for the UK dropped 1.5% to 74.9% compared with Q1 2017.

Birmingham proved the star of the show, helped in part by the IAAF athletics championships in March. The city saw a 9.1% gain in RevPAR growth while ADR was up 2% to £85.50.

Full story at Hotel Owner.

7. Occupancy up but rates fall in UAE 

The latest figures from STR on the UAE hotel market show that occupancy figures may well be on the rise, but this is not pushing through revenue increases. ADR fell by 3.4% to AED666.48 and RevPAR experienced a drop of 2.3% to AED556.12 for Q1 2018.

Abu Dhabi saw RevPAR drop by 4% while Dubai saw a RevPAR decline of 2.6%. STR analysts noted: “The supply growth impact is more substantial in Dubai ahead of Expo 2020, while Abu Dhabi is looking to diversify away from its oil dependence and focus on more development in the tourism sector.”

Full story at Hotel News ME. 

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Sarah McCay Tams, Director of Content, EMEA

Sarah joined Duetto in 2015 as a contributing editor covering Europe, Middle East & Africa (EMEA). In 2017, she was promoted to Director of Content, EMEA. An experienced B2B travel industry journalist, Sarah spent 14 years working in the Middle East, most notably as senior editor – hospitality for ITP Publishing Group in Dubai, where she headed up the editorial teams on Hotelier Middle East, Caterer Middle East and Arabian Travel News. Sarah is now based back in the UK.

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