financeBoutique Hotel News··1 min·For: Owner, GM, Revenue, Investor
Rising Costs Outpace Hotel RevPAR Across Europe
European hotels in major markets like London and Paris are seeing revenue gains eroded by fast-rising operating costs, such as credit card fees and loyalty programs. Hoteliers are urged to shift focus from RevPAR to bottom-line profitability metrics like GOPPAR during upcoming budget cycles.
Key Takeaways
- 1HotStats data shows London, Paris, and Rome growing revenue while losing operating profit margin.
- 2Credit card commissions and loyalty program expenses are rising more than twice as fast as revenue.
- 3Operators must incorporate GOPPAR, CPOR, and margin by segment into budgeting rather than relying on RevPAR alone.
Source: Boutique Hotel News
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