EUROPE Amsterdam hotels continue to register robust performance metrics, outpacing most other major Europe markets in revenue and occupancy.
Amsterdam hotels increased TRevPAR performance 6% year over year in March, to €179.64. Combined with a decrease in payroll costs as a proportion of total revenue, from 32% to 31%, Amsterdam’s gross operating profit per available room (GOPPAR) increased 11.4% to €64.21 during the month, according to the latest TRI Hospitality Consulting data.
In the 12 months to March, Amsterdam hotels increased TRevPAR and GOPPAR performance by 14% and 33%, respectively. Achieved ADR during the period reached €190, up from €159 a year ago. Combined with an increase in commercial demand, Amsterdam hotels are now achieving GOPPAR fast approaching pre-recession levels.
Nine of the 10 Europe cities surveyed in the latest TRI Hospitality report achieved an increase in GOPPAR performance during March.
Vienna experienced a surge in TRevPAR and GOPPAR performance, increasing by 28.4% and 80.7%, respectively.
Prague hotels also registered positive performance after turbulent market conditions—including significant increases in supply and the challenging economic climate—adversely affected hotel market performance. In March, TRevPAR increased by 5.8% to €105.16, resulting in GOPPAR growth of 11.6% year over year.
Barcelona, Brussels, Hamburg, London and Paris all registered RevPAR growth.
“Whilst RevPAR performance grew in most of the European city markets surveyed, the rate of growth in TRevPAR compared to RevPAR was lower in eight of the 10 European cities examined, illustrating that consumers, in general, are still restricting additional non-rooms related spend,” says TRI Managing Director Jonathan Langston.
Bucking this trend was Milan which experienced RevPAR, TRevPAR and GOPPAR growth in March of 11.1%, 14.5% and 22.7%, respectively. Over the 12-month period to March, GOPPAR performance increased by 12.6% to €47.98.
“When examining GOPPAR performance for the 12 months to March 2011, it is encouraging to see that nine of the 10 cities surveyed have achieved double-digit growth, with major European city markets showing a strong rebound effect from the previous year,” Langston says. “In the first quarter of 2011, there appears to be a continued positive trend, with the majority of major city markets showing improved RevPAR and GOPPAR performance.”