London, Paris and Amsterdam Register Revenue and Profit Decline for October

London, Paris and Amsterdam registered a decline in Total Revenue per Available Room (TRevPAR) and Gross Operating Profit per Available Room (GOPPAR) performance for the month of October according to the latest HotStats survey by TRI Hospitality Consulting.

“Sluggish European economic growth is beginning to impact on hoteliers. The past two years has seen a relatively robust rate of recovery but it looks likely that trading will worsen in the future, at least for the coming few months” , said Jonathan Langston, managing director, TRI Hospitality Consulting.

Whilst historic performance indicates that the three major European markets of London, Paris and Amsterdam have experienced robust Revenue per Available Room (RevPAR), TRevPAR and GOPPAR growth on a year-to-date basis, there was a decline in the overall value of demand from the commercial sectors (that is the corporate and conference market) for the month of October.

Paris experienced the greatest decrease in GOPPAR performance (-10.6%). Although occupancy increased by 2.1 percentage points, average room rate declined by 6.4% and TRevPAR by 4.3%. The market experienced a decline in both leisure and commercial-related achieved average sector rates, with the corporate sector experiencing the greatest decrease (-9.4%).

The Amsterdam market, which has been experiencing relatively robust month-on-month profit growth since the beginning of 2010, also posted reduced GOPPAR performance in October (-9.0%). RevPAR performance declined by 6.3% as the Dutch capital saw a reduction in the volume of roomnight demand generated by the corporate and conference sectors. An increase in the volume and value of leisure demand was not enough to stem the decline in rooms revenue performance, caused by a double digit percentage drop in corporate and conference sector rates. 

London’s GOPPAR performance fared better in comparison to Paris and Amsterdam, experiencing a decline of 3.6%, as a reduction in the volume of corporate and conference-related demand underpinned the 2.1 percentage point decrease in occupancy for October. 

“For the first time since October 2009 we have seen a decline in monthly revenue and profit performance of the three major European hotel markets monitored in our survey”, said Langston.

Lire la suite : http://www.hospitalitynet.org/file/152004754.pdf

Source : TRI Hospitality Consulting