Russian Hotels Score Rate Wins From World Cup

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

1. Revenue Up 50% For Moscow Hotels

Russia may not have won the 2018 FIFA World Cup, but its hotels certainly proved winners, with properties in Moscow reporting a 52% increase in revenue per available room (RevPAR) to RUB7,700 for H1 2018, according to data from JLL Hotels & Hospitality Group.

Hotels in the Russian capital recorded a 48% increase in average daily rate (ADR) to RUB11,200, and a 2.7 percentage point increase in occupancy to 72%.

The upscale, economy and upper midscale segments of the Moscow market proved the busiest with 78%, 77% and 76% occupancy, respectively, during the first half of the year. The average cost of a standard room in a luxury Moscow hotel for June exceeded €1,000. The 2018 FIFA World Cup ran from 14 June until 15 July.

Full story at Travel Daily News. 

2. Hotel Profits Soar Across Europe

Huge increases in gross operating profit per available room (GOPPAR) in Russia, thanks to the 2018 FIFA World Cup, helped Europe record a 23.4% increase in profit per room in June — marking one of the most significant months of year-on-year growth in recent years.

Hotels in Europe recorded a profit increase of almost €20 in June to €105.07, compared to the same month last year. TrevPAR increased 11.7% to €231.76. However, figures were buoyed by Russia. Hotels in Moscow saw a 313% increase in GOPPAR to €258.22 for the month.

Full story at HotStats.

3. Profits Continue to Slide for MEA Hotels

Hotels in the Middle East and Africa saw a 2.3% decline in GOPPAR in June despite a 1.4% year-on-year increase in RevPAR, according to data from HotStats.

Rising costs and falling non-room revenues were attributed to the decline, as profits dropped to their lowest levels in 2018, at $44.89. This resulted in a total revenue drop of 0.5% to $163.68 per available room.

Full story at HotStats.

4. UK Sees First Month of Profit Growth in 2018

An uplift in revenue outpaced ongoing cost increases at hotels in the UK to produce a 3% increase in GOPPAR at £67.82, well above the year-to-date average of £46.83.

The increase in profit was driven by a 1.5 percentage points increase in occupancy to 84.2% and a 1.4% increase in ADR to £125.44, which led to a 3.2% increase in RevPAR to £105.59.

Full story at HotStats. 

5. Dubai Tourism Enjoys Record Start to 2018

More than 8.1 million overnight tourists visited Dubai in the first six months of 2018, according to figures from Dubai Tourism.

Top source markets to the emirate were India with one million tourists — up 3% on 2017 — Saudi Arabia and the UK. The fastest growing inbound market was Russia, up 74% to 405,000 tourists, while arrivals from China jumped 9% to 453,000.

Full story at Hotel News ME.

6. Mixed Fortunes for Spain’s Hotels

Despite increasing holiday tourism and growth in the ‘bleisure’ market, Spain’s top markets of Madrid and Barcelona both reported revenue declines in June of this year. Madrid was impacted by an off year for a number of key events normally hosted in the city, leading to a 17.6% decline in both ADR and RevPAR. Prior to June, Madrid’s year-to-date RevPAR was up 7.6% and STR is still forecasting a 3% growth in ADR for year-end 2018.

Barcelona continues to feel the impact of the disputed October 2017 referendum. In the first half of 2018, occupancy declined 5.2% while ADR fell 1.4% compared with H1 2017. Prior to the referendum, the city was consistently seeing monthly double-digit RevPAR growth.

Full story at Hotel News Now.

7. UK Hotel Investment Up 28%

The UK’s hotel industry saw 79 hotel investment deals in the first half of 2018, totalling £3.2 billion in value, a 28% increase on H1 2017, according to Savills.

Portfolio deals accounted for 71% or £2.3 billion of transactions. Landmark acquisitions included Brookfield’s purchase of the SACO portfolio for £430 million and the £750 million acquisition of the Project Ribbon portfolio by Vivion Capital Partners.

Full story at Boutique Hotelier.

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

RELATED HOTEL REVENUE STRATEGY ARTICLES 

 

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.

    Sign up for Duetto Digest, a weekly newsletter featuring our top content every Friday.

    TWITTER

    The Ultimate Guide to Hotel Revenue Strategy

    Free eBook: The Ultimate Guide to
    Hotel Revenue Strategy