Seven trending hotel news stories that will impact your hotel Revenue Strategy.1. Europe Hotels See Sixth Month Of Revenue Decline
July continued to see declines across the board for hotels in Europe, with average room rates down 5% and revenue per available room (RevPAR) down 3.2% year-on-year to €137.50. Gross operating profit per available room (GOPPAR) was down 9% at €75.12 – the sixth month GOPPAR decreased across the region in 2019.
Falling ancillary revenue also meant a drop in total RevPAR, with TRevPAR down 2.8% to €191.76.
“The drop in average room rate is disconcerting,” said Michael Grove, Managing Director, EMEA, at HotStats. “Especially since it’s the second consecutive month that rate has dropped YOY, after positive rate growth in the subsequent five months of the year and all of 2018.”
Full story at HotStats.2. Rising Costs Drag Revenue Down For Middle East Hotels
Hotels in the Middle East and North Africa saw a 2.2% decrease in GOPPAR for July – the 11th consecutive month of decline. The drop put GOPPAR at $38.79, more than $27 below the year-to-date average.
On a positive, the region saw revenue growth with a 1.2% year-on-year increase in RevPAR to $90.54, as room occupancy grew by 2.3 percentage points.
Full story at Hotel News Resource.3. France Tourism Revenues Up 6%
France has maintained first place in terms of international tourist arrivals in 2018, with 80 million visitors – up 2.9% on 2017, according to data from the UNWTO.
Even better news for hoteliers is that tourism revenue jumped 6%, with France receiving $67 billion in tourism revenue, compared to $60 billion the year previous.
Europe remained the leading tourism destination worldwide, with 710 million international arrivals in 2018 (up 5%) and a 5% increase in revenue to $570 billion.
Full story at Hospitality-ON.4. Hotel Revenue And Profit Misaligned In UK
July - historically a peak month for UK hotels – saw its usual increase in revenue and occupancy, but this failed to translate into an increase to the bottom line. RevPAR for hotels in the UK was up 1% to £117.25, buoyed by an average occupancy of 86.6%, and an 1.5% increase in average room rate at £135.52. However, rising costs led by increased payroll, saw GOPPAR drop 0.7% to £71.68.
London’s mixed fortunes mirrored those of the regions, with GOPPAR down 0.2% as RevPAR rose 0.7% to £185.14. Average occupancy in the capital was just under 90% while achieved average room rate hit £206.90.
Full story at Hospitality Net.5. UK Drops In WEF Tourism Ranking
The UK has fallen from fifth to sixth in the World Economic Forum’s rankings of most competitive nations for travel, this despite the plummeting pound making holidays to the UK cheaper for international travellers.
The WEF downgraded Britain’s score due to international openness, for which Britain now ranks 23rd in the world, and for its business environment.
Full story at Skift.6. UK Hotels Market To Grow By 19,000 Rooms In 2019
Hotel conversions and the budget sector will fuel supply growth in the UK hotels space in 2019, according to latest research by Knight Frank. The global property adviser, in its UK Hotel Development Opportunities 2019 report, forecast that 19,300 rooms will open this year – an increase of 2.9%.
The budget hotel sector is expected to dominate the market, with 7,500 new rooms expected to open by the end of this year, a 5% increase on the previous year.
2018 saw £1.1 billion invested in hotel development projects, with London attracting 60% of investment volumes. However, looking forward, Knight Frank tips Edinburgh, Birmingham and Brighton as markets set to thrive.
Full story at Hotel Owner.7. 2020 To Be Busiest Year For Hotel Openings In London
London is to receive 7,995 new hotel rooms in 2020, according to data from STR, representing the largest number of openings London has ever seen in a single year.
In the past decade (2010-2020), London’s overall hotel room capacity has increased by 41%. Combined, 2019 and 2020 will see121 new hotels added to the capital, representing 14,840 rooms. New brands include the Standard, which opened its first European hotel in the UK capital in July, and the recently opened Hard Rock Hotel.
Full story at Breaking Travel News.