Paris Hotels reaches pre-pandemic profitability levels

Friday, May 6, 2022

Paris hotels are the only accommodation facilities to have reached the 2019 profit levels in March, a report has revealed.

According to the expert’s market data on the hospitality industry, Paris hotels were able to achieve gross operating profit per available room (GOPPAR), which was set at €111.18 ($117.26) throughout the third month of 2022, after witnessing plunging levels in January and February, a media reports.

London hotels followed the list, showing a GOPPAR level of €86.11, reaching 87 per cent of the re-pandemic levels, which is even more positive than the progress noted in the previous month when 38 per cent of the pre-pandemic levels were met.

Moreover, the GOPPAR of Amsterdam hotels was 68 per cent of 2019, up from -31 per cent rates recorded in February.

In conclusion, both London and Amsterdam saw their highest GOPPAR levels since December 2019.

Although it is on an upward trend, Berlin’s GOPPAR remained in a negative state for a third straight month, while Moscow was the only market in Europe to show lower profitability compared to the previous month.

Nonetheless, another report from STR shows that the United Kingdom, Poland, and Ireland held the leading spots for the highest recovery of hotel occupancy in the key markets in the EU recorded in March.

More specifically, the hotel occupancy in the UK reached 87 per cent of the pre-pandemic levels during the 28-day occupancy rate recorded until April 11.

During the same period, Poland and Ireland showed the best occupancy indexes, reaching 84.5 and 81.3 per cent of 2019 levels, respectively, as the report reveals.

However, Poland’s positive rates witnessed a drop, with the ongoing war in Ukraine being a major factor.

Furthermore, the European Travel Commission (ETC) previously published a report that reveals that European citizens’ desire for travel is solid and that travellers are optimistic.

With summer holidays in mind, 70 per cent of ‘travel-ready’ Europeans intend to carry out their trips between June and September 2022, while intra-European tourism is the preferred choice for 56 per cent of respondents in this category.

In addition, the interest in Mediterranean destinations has peaked, with countries like Spain, Italy, and France being the most popular picks for tourism this year.

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