Home / Innovation / European Chain Hotels Market Review – May 2019

European Chain Hotels Market Review – May 2019


Hotels in mainland Europe recorded their first year-on-year increase in profit per room in May, powered by growth across all revenue centres, according to the latest data tracking hotels from HotStats.

GOPPAR increased by 5.9% in May to €78.16, which was the largest margin of YOY growth in this measure since October 2018 and was also a high for the year—almost €30 above the year-to-date figure at €48.09.

The growth in profit was led by a 3.7% YOY increase in RevPAR, which hit €133.46 thanks to a 2.3% increase in achieved average room rate to €174.22, as well as the first YOY increase in room occupancy in the region since Q3 2018.

This was supported by an increase in ancillary revenues, which included an uplift in Food & Beverage (up 4.5%) and Leisure (up 13.5 %) revenue, on a per-available-room basis.

As a result, TRevPAR at hotels in mainland Europe increased by 3.3% to €195.61 this month, which was 24.2% above the year-to-date figure.

The only challenge to performance was a 0.9% YOY increase in payroll to €59.42 per available room.

Profit & Loss Key Performance Indicators – Mainland Europe (in EUR)


May 2019 v. May 2018


+3.7% to €133.46


+3.3% to €195.61


+0.9% to €59.42


+5.9% to €78.16

“Hoteliers in mainland Europe will be hoping that the growth this month kickstarts their profit recovery,” said Michael Grove, Director of Intelligence and Customer Solutions, EMEA, at HotStats. “However, they will have to put the pedal to metal to recoup the losses suffered so far in 2019 and record a third consecutive year of profit growth.”

It was a strong month of trading for hotels in Madrid as the Wanda Metropolitano Stadium hosted the 2019 Champions League Final between Liverpool and Tottenham Hotspur.

An estimated 150,000 English football fans travelled to Madrid, fuelling a 15.9% YOY increase in RevPAR, which was driven by a 12.9% increase in achieved average room rate to €188.62, the highest level since June 2017.

Despite underwhelming ancillary revenue growth, recorded at just 3.0% to €65.35, hotels in the Spanish capital recorded an 11.8% YOY increase in TRevPAR to €222.90, which contributed to the 22.4% increase in GOPPAR to €101.18.  

Profit conversion at hotels in Madrid was recorded at 45.4% of total revenue this month.

Profit & Loss Key Performance Indicators – Madrid (EUR)


May 2019 v. May 2018


+15.9% to €157.55


+11.8% to €222.90


+4.5% to €63.43


+22.4% to €101.18

For the host city of last year’s finals, Kiev, this month was a very different picture, with GOPPAR plummeting by 56.4% YOY to €39.31.

Although hotels in the Ukraine capital were able to achieve a 7.8-percentage-point increase in room occupancy to 58.0%, it was at the expense of a 54.5% decrease in achieved average room rate, which fell to €97.18. 

As a result, RevPAR fell by 47.5% to €56.33. Falling ancillary revenues completed a fairly disappointing, but ultimately expected, set of trading result for hotels in Kiev.

And despite a 12.0% saving in payroll per available room to €15.71, profit levels plunged by more than €50.

Profit & Loss Key Performance Indicators – Kiev (EUR)


May 2019 v. May 2018


-47.5% to €56.33


-42.6% to €75.56


-12.0% to €15.71


-56.4% to €39.31

HotStats provides two reporting tools to hoteliers:

Our unique profit and loss benchmarking service which enables monthly comparison of hotels’ performance against their competitors. It is distinguished by the fact that it provides in excess of 100 performance metric comparisons covering 70 areas of hotel revenue, cost, profit and statistics providing far deeper insight into the hotel operation than any other tool.

Our latest innovation in daily revenue intelligence, MORSE. Amongst its reporting are daily and highly granular market segmentation metrics as well as distribution channel and source of booking analysis. It takes daily market intelligence to a whole new level.

For more information contact:


+44 (0) 20 7892 2241


Logos, product and company names mentioned are the property of their respective owners.

Check Also

HVS Report – Covid-19: Impact on the Indian Hotels Sector – By Mandeep S Lamba , Akash Datta , Dipti Mohan

The world is still coming to terms with the COVID-19 outbreak and there is no …