The absence of the biennial ISH Renewable Energies
exhibition resulted in a 21 per cent year-on-year decline in profitability per
available room for Frankfurt hotels in March.
According to the latest HotStats survey by TRI Hospitality
Consulting, the impact of the event not taking place in 2012 led to a 9.7 per
cent dip in total revenue per available room (TrevPAR) and saw gross profit per
available room (GOPPAR) drop from €46.93 to €38.82. In 2011 the exhibition –
which is scheduled to return in 2013 - attracted more than 200,000 visitors to
“Although a 5.2 percentage point increase in payroll levels
at hotels in Frankfurt, to 31.7 per cent of
total revenue, is somewhat unsettling, it is not surprising as the cyclical
nature of major events at Messe Frankfurt causes significant peaks and
troughs in performance throughout the year,” said Jonathan Langston, managing
director, TRI Hospitality Consulting.
Elsewhere in Europe, rising payroll costs impacted profit
levels in Athens, Brussels,
Freefalling Athens suffered the worst drop in GOPPAR (160
per cent) to -€11.75, which was primarily as a result of a 13.1 per cent drop
in achieved average room rate to €121.76 and an 11.3 percentage point increase
in payroll, to 70.2 per cent of total revenue.
“This would suggest that labour costs in the Greek capital have
not been modified to reflect declining demand levels,” said Langston.
Pictured: ISH Renewable Energies
exhibition in Frankfurt