The economic slowdown and falls in international travel brought a drop in hotel profitability during November in all 10 European cities monitored in the monthly Europe HotStats survey.
The steepest declines were seen in Amsterdam, Munich, Prague, Vienna and Budapest, where income before fixed charges per available room (IBFCpar) slumped by 37.6%, 35.1%, 33.6%, 32.4% and 26.1% respectively.
Occupancy, revenue per available room, and IBFCpar fell in all 10 cities, although five locations (Paris, Budapest, Munich, Hamburg and Warsaw) managed to lift average room rates.
London led the profitability league with an IBFCpar of €120.06 (12% lower than a year ago), followed by Paris’ €81.10.
“November was the first month that many companies implemented new restrictions on travel for their employees,” commented Jonathan Langston, managing director at TRI. “For hoteliers, in addition to the trips not made, this also meant short-notice cancellations.”
“In many key markets, falls in occupancy have widened from August onwards and, unfortunately, any rapid reversal of this trend looks increasingly unlikely,” he added.
Local influences included fewer visitors and exhibitors at Amsterdam’s annual MET marine equipment show and a reduction in hen, stag or cultural overnight trips to Amsterdam, Prague and Vienna.
Hoteliers have also found that tour groups from the USA are being cancelled due to the lack of participants.
The figures are compiled each month by Tri Hospitality Consulting.
Annual HotStats hotel performance data
TRI Hotels 2007 UK >>
TRI HotStats: annual UK hotel figures >>
TRI HotStats: Hotels 2007 Europe >>
NOVEMBER 2008
| Amsterdam | 2008 | 2007 | Movement |
| Occupancy | 69.1% | 84.8% | -15.8 points |
| Room rate | €165.71 | €176.83 | -6.3% |
| Revpar | €114.43 | €150.02 | -23.7% |
| Payroll % | 33.6% | 27.5% | +6.1 points |
| IBFCpar | €58.72 | €94.13 | -37.6% |
| Berlin | 2008 | 2007 | Movement |
| Occupancy | 66.6% | 74.1% | -7.5 points |
| Room rate | €138.31 | €145.05 | -4.6% |
| Revpar | €92.14 | €107.48 | -14.3% |
| Payroll % | 31.2% | 29% | +2.1 points |
| IBFCpar | €64.11 | €72.63 | -11.7% |
| Budapest | 2008 | 2007 | Movement |
| Occupancy | 62.9% | 70% | -7 points |
| Room rate | €98.03 | €96.22 | +1.9% |
| Revpar | €61.68 | €67.32 | -8.4% |
| Payroll % | 32.1% | 30.1% | +2points |
| IBFCpar | €28.75 | €38.90 | -26.1% |
| Hamburg | 2008 | 2007 | Movement |
| Occupancy | 74.5% | 75.8% | -1.3 points |
| Room rate | €118.75 | €117.65 | +0.9% |
| Revpar | €88.48 | €89.14 | -0.7% |
| Payroll % | 30.9% | 26.7% | +4.2 points |
| IBFCpar | €51 | €58.88 | -13.4% |
| London | 2008 | 2007 | Movement |
| Occupancy | 81.5% | 86.7% | -5.1 points |
| Room rate | €184.20 | €193.79 | -4.9% |
| Revpar | €150.13 | €167.93 | -10.6% |
| Payroll % | 24.9% | 21.7% | +3.2 points |
| IBFCpar | €120.06 | €136.91 | -12.3% |
| Munich | 2008 | 2007 | Movement |
| Occupancy | 67.7% | 79.2% | -11.5 points |
| Room rate | €122.16 | €120.84 | +1.1% |
| Revpar | €82.71 | €95.67 | -13.5% |
| Payroll % | 32.9% | 28.4% | +4.5 points |
| IBFCpar | €40.75 | €62.82 | -35.1% |
| Paris | 2008 | 2007 | Movement |
| Occupancy | 74.4% | 83.8% | -9.4 points |
| Room rate | €212.32 | €205.79 | +3.2% |
| Revpar | €157.86 | €172.42 | -8.4% |
| Payroll % | 40.4% | 38.2% | +2.3 points |
| IBFCpar | €81.10 | €93.48 | -13.2% |
| Prague | 2008 | 2007 | Movement |
| Occupancy | 66.1% | 77.8% | -11.7 points |
| Room rate | €102 | €108.37 | -5.9% |
| Revpar | €67.46 | €84.35 | -20% |
| Payroll % | 27.7% | 24.2% | +3.6points |
| IBFCpar | €41.14 | €62 | -33.6% |
| Vienna | 2008 | 2007 | Movement |
| Occupancy | 63.9% | 76.7% | -12.8 points |
| Room rate | €138.72 | €143.73 | -3.5% |
| Revpar | €88.64 | €110.29 | -19.6% |
| Payroll % | 45.4% | 41.8% | +3.6points |
| IBFCpar | €33.70 | €49.84 | -32.4% |
| Warsaw | 2008 | 2007 | Movement |
| Occupancy | 66.7% | 75.2% | -8.6points |
| Room rate | €107.04 | €104.52 | +2.4% |
| Revpar | €71.34 | €78.60 | -9.2% |
| Payroll % | 24.9% | 24.1% | +0.8 points |
| IBFCpar | €54.02 | €58.60 | -7.8% |
View the figures for October 2008 >>
View the figures for September 2008 >>
View the figures for August 2008 >>
View the figures for July 2008 >>
View the figures for June 2008 >>
View the figures for May 2008 >>
View the figures for April 2008 >>
View the figures for March 2008 >>
View the figures for February 2008 >>
View the figures for January 2008 >>
View the figures for December 2007 >>
View the figures for December 2006 >>
View the figures for December 2005 >>
Definition of terms
Occupancy is that proportion of the bedrooms available during the period which are occupied during the period.
Room rate is the total bedroom revenue for the period divided by the total bedrooms occupied during the period.
Revpar is the total bedroom revenue for the period divided by the total available rooms during the period
Payroll % is the payroll for all hotels in the sample as a percentage of total revenue
IBFCpar is the Income Before Fixed Charges shown per available room