Revenue levels at many of Europe’s hotels are in decline, and Stockholm is experiencing the same trend.
Profit per room at hotels in mainland Europe fell for a fifth consecutive month in April, according to the latest data from HotStats tracking full-service hotels, Hotel Management reports. Total gross operating profit fell 8.4% year over year.
In addition to a 1.2% decrease in revenue per available room to €114.51, hotels in the region recorded a 7.4% drop from other sources of revenue in April to €53.96. Compared to the previous year, revenue from food and beverage dropped 8.4% and conference and banqueting revenue was down 16.6% on a per-available-room basis.
While total revenue per available room has not been as hard hit, April was still the second consecutive month that it showed a decline, falling by 3.4% to €168.47. Although this was the highest so far in 2019, it was 3.9% behind the number for the previous 12 months at €175.23.
However, payroll levels fell 0.5% to €56.90 on a per-available-room basis. This was the first time there was a reduction in these costs since December 2016.
“After 25 months of almost consistent growth, profit per room at hotels in mainland Europe is now deteriorating as revenues slide and costs escalate,” said Michael Grove, HotStats’ director of intelligence and customer solutions, EMEA.
Hard for Stockholm
Just as all over Europe, April was a difficult month for hotels in Stockholm, as profit per room fell 21.3% for the year to €59.21.
The season of longer days usually bring an increase in revenue for hotels in Sweden’s capital, but this is not happening in 2019, as profit per room in April was 5.7% lower than in March, and there were similar decreases in ancillary revenue as well, the data said.