Main hotel markets in Europe exceed profitability levels of 2019
The hospitality sector of the old continent is back on track, surpassing pre-pandemic figures in gross operating profit per available room
Several of Europe's largest hotel markets, led by Berlin, surpassed their 2019 levels in gross operating profit per available room (GOPPAR), according to STR's July 2022 profit and loss data release.
Berlin's July GOPPAR reached $34.32, which was 183% of the pre-pandemic comparable. In June, the market reported GOPPAR at US$98.21, which was 132% of the comparable level of 2019.
Also reporting a significant month-over-month improvement in the region, Paris posted a July GOPPAR of $312.64. That level was the second highest in the market this year after June ($347.08). Other key markets, London and Amsterdam, reported GOPPAR was 105% of the 2019 comparable, at $172.11 and $97.65, respectively.
"Hotel occupancy in Europe is just 10% below pre-pandemic levels, and many markets that were empty last summer are now bursting with visitors," said Alex Robinson, director of industry partners at STR. “In July, London and Paris reported 85% occupancy, which was nearly double the previous year. While occupancies have increased, it has been room rates that have been the key driver of the recovery. Room rates in Europe in July were 27% higher than in 2019, with Athens, Edinburgh and Rome as standout countries. While concerns may cast a shadow over European economies in the medium term, European hoteliers have been experiencing a sunny recovery in recent months.