London, Paris and Amsterdam posted declines in total revenue per available room (TRevPAR) and gross operating profit per available room (GOPPAR) during October according to the latest HotStats survey by TRI Hospitality Consulting, London.
Paris experienced the greatest decrease in GOPPAR performance, with a 10.6% drop, TRI reported. Although occupancy increased by 2.1 percentage points, average room rate declined 6.4% and TRevPAR 4.3%.
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, with a 9% drop, according to TRI. RevPAR performance declined 6.3% as the Dutch capital saw a reduction in the volume of room-night demand generated by the corporate and conference sectors.
London’s GOPPAR performance fared better in comparison to Paris and Amsterdam, experiencing a 3.6% decline, as a reduction in the volume of corporate and conference-related demand underpinned the 2.1 percentage point decrease in occupancy for October.
Some bright spots
Istanbul registered robust profit growth in the latest HotStats survey, as the Turkish capital increased TRevPAR and GOPPAR performance by 19.8% and 43.2%, respectively, in October. Istanbul continued to exhibit strong growth — 18% — in average room rate performance as TRevPAR performance increased 19.8%. In the 12 months preceding October 2011, GOPPAR performance has risen 51.5% in Istanbul.
Despite a slight decline in occupancy of 1.5%, the Frankfurt hotel market also experienced a significant increase — 15.6% — in average room rate performance as events such as the Frankfurt Jazz Festival, BMW Euro Marathon and Frankfurt Book Fair boosted revenues.
Dublin also continued its recovery as GOPPAR performance increased 4.2%. In the 12 months preceding October 2011, the Irish capital has experienced a 21.3% increase in GOPPAR.