Profits Continue To Soar At Europe’s Hotels

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

1. Operating Profits up 12% At Europe Hotels

Hotels in Europe recorded their third consecutive month of significant profit growth in August, with gross operating profit per available room (GOPPAR) up 11.8% percent to €70.65, according to the latest data from HotStats.

Hotels on the continent enjoyed an 8.3% increase in revenue per available room (RevPAR) to €132.56 and a 5.8% increase in achieved average room rate to €169.86. Occupancy was up 1.7 percentage points to 78%. For the first eight months of the year, GOPPAR has increased 11.7%.

According to Michael Grove, Director of Hotel Intelligence and Customer Solutions, EMEA, at HotStats, growth was primarily driven by locations in the north and east of the region, while the south west was affected by sweltering temperatures, which deterred visitors.

Full story at HotStats. 

2. Most Expensive European City Hotels Revealed

The Aman Venice, located on the city’s Grand Canal, has been named as Europe’s most expensive luxury hotel, with a minimum rate of €1485 per night for September 2018, in a recent survey.

Parisian hotels took second, third, fourth and fifth places, with the Le Bristol at €1362 per night, Four Seasons Hotel George V at €1350, La Reserve Paris Hotel & Spa at €1308 and Hotel Plaza Athenee at €1290. The survey was conducted in August 2018 and detailed the 20 most expensive properties in Europe.

Full story at Travel Daily News. 

3. Eid Celebrations Lift Performances At Middle East Hotels

Profit per room at hotels in the Middle East and Africa increased 25.6% year on year to $60.08 for August, as several markets benefitted from celebrations to mark the Eid al-Adha Holy festival.

The holy city of Makkah, the key location for Eid al-Adha and Hajj celebrations, saw profit per room jump by almost 100% year on year to $386.90. This included a 68.8% increase in RevPAR at $368.93 and a 51.1% increase in achieved average room rate, at $438.78. August marked only the third month of profit growth at hotels in the Middle East and Africa this year.

Full story at Hotel Management.

4. Temperatures And Profits Soar At UK Hotels This Summer

UK hotels enjoyed a 9.2% year-on-year increase in profit per room for August, boosted by an increase in leisure travellers as Brits took advantage of the warm weather and took a domestic break. Leisure accounted for 40.6% of accommodated room nights, well above the annual average of 32.1% for the 12 months to August 2018.

Hotels in the UK reported an 8% increase in RevPAR at £100.72 and a 4.6% increase in average room rate at £118.84.

Full story at The Caterer. 

5. Belgium Hotels Bounce Back

Belgium’s hotel market has finally seen business levels return to the rates seen before the terror attacks in Brussels in 2016, according to the latest HOSTA report by Horwarth HTL.

Average occupancy levels are expected to hit 73.6% for 2018, up from 66.1% in 2016. As visitors return so too have room rates, with average room rates expected to achieve €97 in 2018, up from €91 in 2016. As such, GOPPAR has increased by 28% over that period.

Full story at Hospitalitynet. 

6. Investor Opportunity In Sub-Saharan Africa, Says JLL

Up to $1.7 billion could be invested into Africa’s hotel development in 2019, according to the Hotels & Hospitality Group, JLL Sub-Saharan Africa. Hotel investors in the region remain positive about the outlook for the sector, despite high supply growth placing pressure on hotel performance in recent years.

According to JLL, investors are looking at niche segments, new secondary markets and value-add acquisitions to reach their return targets. The professional services firm said that, overall, the outlook in the medium term is positive, with a more sustainable pipeline and stronger demand fundamentals.

Full story at Travel Daily News.

7. School Holidays Boost For UK Accommodation Providers

Bookings soared between mid-July and end of August for accommodation providers in England as more Brits opted to spend the school summer holidays closer to home, according to a new survey by VisitEngland.

The increase in demand is expected to continue through to the end of October, with 67% of those surveyed reporting good or very good advance booking levels until the end of the month.

Full story at Travel Daily News.

Stay up on hotel Revenue Strategy news and discuss industry tech trends in the Hotel Revenue Strategy Leaders Group on LinkedIn. 

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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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