Rising room rates this summer have helped hotels in major European cities surpass pre-Covid profit levels, according to the latest data from industry analyst STR.
Properties in Berlin benefited the most from a summer increase in activity with gross operating profit per available room (GOPPAR) hitting $34.32 in July, an increase of 83% from the same month in 2019.
Although occupancy rates in Europe remain around 10% lower than pre-Covid, average room rates are up 27% from 2019 levels due to strong demand from leisure travelers and business.
Other European cities to record higher profits include Paris, where hotels hit a GOPPAR of $312.64 in July. Meanwhile, London made a profit of $172.11 per room and hotels in Amsterdam made an average profit of $97.65, about 5% higher than July 2019 figures.
Alex Robinson, Director of Industry Partners at STR, said: “In July, London and Paris both reported 85% occupancy, almost double what it was the previous year. While occupancy rates have surged, room rates have been the main driver of the recovery. »
Robinson added that Athens, Edinburgh and Rome were also “outstanding performers” in July.
“While worries may cloud European economies in the medium term, European hoteliers have enjoyed a sunny recovery in recent months,” Robinson said.
Travel management company CWT has predicted that global room rates will continue to rise through the rest of the year and into 2023 as the recovery continues and rising costs push prices higher .