The uplift in achieved average room rate came alongside a 0.6 per cent increase in room occupancy and a 3.8 per cent increase in the residential conference sector.
This was the 10th month of profit growth for European hotels in 2018 (report runs up to November 18) and, absent a complete collapse in December, hotels in Europe are set to record another huge profit increase in 2018, following an 8.9 per cent increase in 2017. Profit per room at hotels in Europe has now grown by almost 20 per cent over the last 24 months to €64.57 in the rolling 12 months to November 2018, from €53.99 during the same period in 2015/2016.
Profit growth in November was led by significant year-on-year increases in revenue, which included an uplift in rooms (5.6 per cent) and food and beverage (1.4 per cent) revenue, on a per-available-room basis; in spite of a decline in conference and banqueting (down 0.1 per cent) and leisure (down 6.1 per cent) revenue.
“2018 has been a hugely positive story for hotels in Europe with record revenue and profit levels being driven by volume, which continues to reach new heights,” said Michael Grove, director of intelligence and customer solutions, EMEA, at HotStats. “And this is all in spite of an increasingly challenging economic picture in the region.”
For hotels in Brussels, room occupancy levels grew by 5.7 per cent to 81.6 per cent, while there was a 3.7 per cent increase in achieved average room rate to €161.68.
Since Brexit negotiations began 24 months ago, revenue per available room (RevPAR) levels at hotels in Brussels have increased by almost €30 to €110.13 in the rolling 12 months to November 2018. During the same period, profit per room has almost doubled to €46.71.
In line with the growth in Brussels, profit increases in Dublin continue unabated, as room occupancy hit a lofty 83.3 per cent and achieved average room rate grew to €167.95.
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