Hotels in Paris, and Budapest became more profitable

Hotels in Paris, and Budapest became more profitable

Hotels in Paris, Budapest and Istanbul can rightly called 2011 one of the best years in history of their hotel business. In November hoteliers of the three European cities marked a significant room profit increase (RevPAR). These data are presented in a statistical study of the consulting company TRI Hospitality Consulting.

Istanbul was the most successful among the three hotels. Hotels of the main Turkish citycould increase the average room revenue by almost 18% despite 1.5% fall in occupancy rates. Against this background increase in Paris (+6.1%) and Budapest (+8.4%) appear to be modest. And if to take into account the fact that both capitals experienced increase in occupancy rates, then they should admire the enterprising spirit of the Istanbul hotel owners.

The average RevPAR for hotels in Istanbul as of November 2011 was amounted to 193 Euros, while in Paris, this figure was 204 Euros, and in Budapest - about 92 Euros.

London suffered the first decrease in revenues for the whole year in November. It can be explained by the growth of spending on maintenance hotel stock. In November 2011 RevPAR for hotels in London fell by 2.5% and was amounted to 114 Euros. Room occupancy rate, which declined by 1.8%, also affected the revenue.

In reducing the RevPAR rate London is followed by Dublin, Rome, Amsterdam and some other European capitals. Almost all cities with significant decline also experienced fall in room occupancy rates. Thus, the average November room occupancy in Rome was 68%, while in Amsterdam - 78%.

RevPAR rate (revenue of the room per available rooms) is one of the key indicators, which is used to determine the effectiveness of the hotels in the region. Currently are used several ways to determine this figure. The most popular is to determine the ratio of room revenue to the total number of available rooms.

Ilya Kalachev

Date: 12/01/2012