TRI: Europe’s recovery continues

Seven of the ten European cities in the latest HotStats survey by TRI Hospitality Consulting registered TRevPAR and GOPPAR growth for the month of September. Cities which experienced a decline in GOPPAR were Berlin, Brussels and Zurich.

The Amsterdam hotel market continues to grow from strength-to-strength as GOPPAR increased by 16.7% for the month of September. Over the 12-month period up until September 2011, Amsterdam GOPPAR performance has increased by an astonishing 26.6.

Following the decline in profitability in August, the London hotel market registered robust growth in TrevPAR of 6.4% and GOPPAR of 10.5% performance as London hotels continue to increase rates to the commercial sectors.

Paris profit performance was more subdued at 1.6%, despite an increase in RevPAR of 6.0% and TrevPAR of 3.8% performance, highlighting an increase in operating costs, including payroll which rose to 31.7% of total revenue compared to 31.2% in September 2010.

Vienna and Warsaw registered the greatest growth in GOPPAR performance of 30.0% and 20.8%, respectively, as both markets experienced significant increases in average room rate performance supported by substantial increases in achieved sector rates to the corporate and conference sectors, achieving double digit growth.  The significant boost in GOPPAR performance has meant that the Vienna hotel market has now experienced an increase in GOPPAR performance over the 12-month period to September 2011 of 0.9%.

The Milan market also experienced a significant increase in GOPPAR performance of 16.8% as RevPAR and TRevPAR increased by 7.9% and 9.0%, respectively.  Occupancy performance in the Italian city increased by 2.4% from 85.4% to 87.8% illustrating robust occupancy performance.    

Barcelona also registered TRevPAR and GOPPAR growth of 3.0% and 4.4%, respectively, for the month of September. Over the 12-month period to September, the city has experienced a 15.2% increase in GOPPAR performance to €39.22 (US$55.06).

“Overall, the majority of the European cities surveyed this month have registered strong occupancy performance. Typically, September is a month which exhibits robust corporate-related demand and more encouraging is the fact that the volume and value of corporate demand in the majority of our surveyed city markets has increased significantly, allowing increased profit performance” said Jonathan Langston, managing director, TRI Hospitality Consulting.