30. Juni 2010 
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European Cup Finals drive profitability in Hamburg and Madrid
“We have highlighted the impact of major events on hotel performance in the past, but such events are even more important at the moment, if only to distract hoteliers from the wider issues in the market. Looking at the year to date figures for 2010, both Hamburg and Madrid are now showing a positive set of results with growth in profitability firmly back on the agenda” commented Jonathan Langston, managing director, TRI Hospitality Consulting.
Increases in hotel supply and depreciating market conditions forced hotels in Prague and Budapest to engage in further price reductions in May in order to drive room occupancy, according to the latest HotStats survey.
This strategy has been successful in Budapest where room occupancy has grown by 11.7 percentage points to 72.7% but only at the expense of average room rate, which declined a further 13.4% last month following a 10.2% decline in May 2009. That said, as a result of these measures, RevPAR in the Budapest hotel market increased by 3.1% to €68.36. In contrast, whilst it appears that a similar strategy has been adopted in Prague, it has not been executed with the same level of success. Although a 14.7% sacrifice in room rate resulted in an 8.5 percentage point increase in room occupancy to 78.4%, it was not enough to grow yield and the city ended the month with a year-on-year RevPAR decline of 4.3% to €72.82.
London performs well but Rome and Paris are better
Not surprisingly, following an achieved average room occupancy of 85.7% in May 2009, London hoteliers were unable to increase the volume of accommodated roomnights in the same month in 2010 and room occupancy remained stable at 85.5%. That said, average room rate in London grew by an impressive 7.8% to €164.74 and as a result, RevPAR grew by 7.6% to €140.83.
However, with the inclusion of the premium-rated Rome and the strong performance of Paris during the French Open, London has been pushed down to third place in the latest HotStats survey.
There were nine days of play in the French Open in May and as a result RevPAR in the city was 16.3 % above the rolling 12 month average at €159.72. Despite a decline in both room occupancy and average room rate, RevPAR in the Italian capital remained at €178.28, more than 20% above London.
Increases in hotel supply and depreciating market conditions forced hotels in Prague and Budapest to engage in further price reductions in May in order to drive room occupancy, according to the latest HotStats survey.
This strategy has been successful in Budapest where room occupancy has grown by 11.7 percentage points to 72.7% but only at the expense of average room rate, which declined a further 13.4% last month following a 10.2% decline in May 2009. That said, as a result of these measures, RevPAR in the Budapest hotel market increased by 3.1% to €68.36. In contrast, whilst it appears that a similar strategy has been adopted in Prague, it has not been executed with the same level of success. Although a 14.7% sacrifice in room rate resulted in an 8.5 percentage point increase in room occupancy to 78.4%, it was not enough to grow yield and the city ended the month with a year-on-year RevPAR decline of 4.3% to €72.82.
London performs well but Rome and Paris are better
Not surprisingly, following an achieved average room occupancy of 85.7% in May 2009, London hoteliers were unable to increase the volume of accommodated roomnights in the same month in 2010 and room occupancy remained stable at 85.5%. That said, average room rate in London grew by an impressive 7.8% to €164.74 and as a result, RevPAR grew by 7.6% to €140.83.
However, with the inclusion of the premium-rated Rome and the strong performance of Paris during the French Open, London has been pushed down to third place in the latest HotStats survey.
There were nine days of play in the French Open in May and as a result RevPAR in the city was 16.3 % above the rolling 12 month average at €159.72. Despite a decline in both room occupancy and average room rate, RevPAR in the Italian capital remained at €178.28, more than 20% above London.
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