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Hospitality Net
10-06-2025
- Business
- Hospitality Net
Margins Matter: The APAC Hotel Recovery in Focus
While much of the global hospitality sector remains in flux, Asia-Pacific's hotel industry is carving its own path—one defined not just by rising revenues but by sharper operational choices. The latest regional figures reveal a complex picture of recovery, where topline growth, margin management, and cost strategy are inextricably linked. Figure 1 Oceania continues to lead the APAC region in Total Revenue per Available Room (TRevPAR), maintaining a consistent advantage over South Asia—despite the latter's contrasting internal dynamics, from high-yield leisure destinations like the Maldives to cost-sensitive markets like India. This rolling 12-month view highlights both the strength and diversity of the region's recovery, underscoring why revenue trends alone don't tell the full profitability story. — Photo by HotStats Limited Across APAC, Total Revenue per Available Room (TRevPAR) has been on a steady upward track, based on a 12-month moving average in USD. That's good news for hotel owners and operators still navigating aftershocks from travel disruptions and cost inflation. However, while revenue growth is evident, its pace has noticeably slowed in recent months. This deceleration might explain why, despite the numbers, many hoteliers don't feel the recovery—because although growth is occurring, it's not as fast or as visible on the ground. In many markets, particularly those with strong inbound tourism, demand is still translating into real performance gains. The bounce back isn't limited to room revenue—Food & Beverage, spa, and ancillary spend are also contributing more meaningfully to the top line. Figure 2 Profitability across APAC has narrowed to a tight race—especially between Oceania and South Asia—reflecting strong cost management and improved margins. Oceania's higher cost base is evident as its lead in revenue doesn't fully translate into GOPPAR dominance. Still, the region holds a healthy 34% GOP margin, edging above last year's performance thanks to a strong Q1. — Photo by HotStats Limited But perhaps the more telling trend lies beneath the surface. Gross Operating Profit per Available Room (GOPPAR) has grown in tandem with revenues, suggesting operators are regaining financial footing. However, the data also shows marked variance between markets. Some countries—especially leisure-heavy destinations—are exceeding pre-pandemic profitability, while others are still fighting to close the gap. Figure 3 Q1 delivered a strong start for several Pacific cities—Perth, Melbourne, and Sydney all saw solid year-on-year gains in both revenue and profit, reflecting a healthy mix of demand and margin recovery. In contrast, some key Asian hubs like Hong Kong and Singapore continued to lag, with softer growth and lingering pressure on GOPPAR. The divergence highlights how recovery trajectories remain uneven across the region, shaped by differing market dependencies and travel patterns. — Photo by HotStats Limited In the first quarter of 2025, these variances became more pronounced. Markets like Thailand, Vietnam, and parts of Indonesia showed strong year-on-year GOPPAR growth, driven by a mix of higher occupancy and improved Average Daily Rate (ADR). Urban centres like Hong Kong and Seoul, on the other hand, while improving, are still recovering more gradually—constrained by corporate and group travel segments that remain sluggish. Yet not all of the profit recovery can be attributed to stronger demand. The region has also seen a downward shift in total operating expenses per available room, including labour, over the past year. On paper, this looks like efficient management. In some cases, it is. Hotels that embraced tech-driven check-ins, lean staffing models, or back-of-house automation have preserved margins without sacrificing service quality. But there's a cautionary undercurrent here. Not every drop in cost leads to healthy performance. In certain markets, reduced staffing and deferred maintenance have led to guest satisfaction concerns or lower return visits. While it may boost short-term profits, it risks longer-term brand equity and pricing power. In a margin-focused environment, the question isn't just 'how much are we spending?' but 'what are we spending it on?' The story is clearest when we look at GOP margins. The 12-month rolling data shows some countries holding margins above 40%, even as revenues plateau—an indication that disciplined operations are paying off. But it's also a sign that future gains may not come from cost control alone. With inflation still shaping labor and utility costs across the region, the next phase of performance growth will need to be strategic, not opportunistic. For hoteliers and investors alike, the implication is clear: now is the time to rebalance. Revenues are stabilizing. Margin management is critical. But so too is investing in the guest experience, digital transformation, and data-driven forecasting. Want to know where your property stands in this shifting landscape? Tap into the data that helps you benchmark smarter and plan better. About HotStats HotStats, a Duetto company, is a global data benchmarking company offering specialized performance analysis and a benchmarking tool that helps analyze financial and operational data from a diverse range of hotels globally. This provides hotel owners, operators, and investors with valuable insights into the financial performance of their properties against their competition – an invaluable resource for weighing options and evaluating investment opportunities. For a quick demo, email us at [email protected] or visit View source
Hospitality Net
03-06-2025
- Business
- Hospitality Net
Berlin Hotel Market Spotlight YE Mar 2025
OVERVIEW The sample of branded full-service hotels in Berlin recorded a healthy increase in profit during the 12 months ending March 2025. Despite a 9.6% growth in expenses, the GOP per available room (PAR) increased by 4.1%, driven by a 7.9% revenue increase. In Q1 2025, the growth of GOP PAR continued but at a slower pace (+0.3% compared to Q1 2024). The key revenue driver was the Rooms department, with RevPAR increasing by 7.3%, underpinned by a 4.5% growth of occupancy and a 2.6% rise in ADR during YE March 2025. In Q1 2025, RevPAR increased by 4.3%, due to a 5.0% increase in occupancy and despite a 0.7% drop in ADR. Occupancy rates were boosted especially during the winter season, with the most substantial YoY increases in January 2025 (+15.3%), December (+14.8%) and November 2024 (11.9%). The performance growth was supported by the declining supply (-0.1%), as there were several hotel closures during the last 12 months (-1,592 rooms), surpassing the hotel openings (+602 rooms). The primary driver of expense growth was Payroll (+€6.5 PAR), followed by Other Expenses (+€5.1 PAR). Overall, while the nominal GOP PAR increased, the GOP margin declined from 30.7% to 29.6%, due to expenses outpacing revenue growth. As a result, only 15.9% of revenue growth flowed through to the bottom line. Berlin Hotel Market Spotlight 2025 — Source: Cushman & Wakefield & HotStats (data are rounded) — Photo by Cushman & Wakefield Berlin Hotel Market Spotlight 2025 — Source: Cushman & Wakefield & HotStats (data are rounded) — Photo by Cushman & Wakefield SUPPLY Over the last 12 months, the Berlin hotel market saw several new hotel openings but also closures, resulting in an overall 0.1% decrease in total supply (-63 rooms, weighted by opening/closing date). There were 4 notable openings and re-openings (602 rooms) in Berlin during YE Mar 2025. Some hotels also underwent brand conversions, such as Radisson Collection (former Radisson Blue) and Roomers Berlin (Previously Autograph Collection). Most of the new hotels opened in the city center and within the Upper Upscale class (73.1% of new supply) The room additions in Berlin were offset by five hotel closures, of which two were repurposed into other types of assets, such as the Sheraton Grand Esplanade's conversion into a mixed-use building or the City Hotel Berlin East being converted into refugee accommodation. The most significant supply decline was recorded in Berlin Centre West (-668 rooms), followed by Berlin Outer Boroughs (-311 rooms net). Due to two hotel openings and two closures, Berlin Centre East recorded only a marginal supply decline (-11 rooms net) There has been a shift between hotel classes, as most additions were Upper Upscale hotels (+440 rooms), while most rooms closed within the Upscale class (+530 rooms) Berlin Hotel Market Spotlight 2025 — Source: Cushman & Wakefield & STR (data are rounded) — Photo by Cushman & Wakefield COST OF SALES Total Cost of Sales (COS) increased by 3.8% (+€0.7 PAR), driven by F&B (+€0.4 PAR) and Rooms (+€0.3 PAR) departments. PAYROLL COSTS Total payroll costs registered a significant growth compared to last year (+12.6%), rising from €51.3 to €57.8 PAR. This growth partly reflects the increased occupancy and 3.8% increase in the minimum wage implemented in January 2024. The largest labor costs increase was in the F&B department (+€3.1 PAR, a 14.1% increase), followed by the Rooms department (+€1.9 PAR, a 11.7% increase). UTILITIES COSTS The Utilities costs decreased by €0.9 PAR, from €8.7 (PAR) in YE Mar 2024 to €7.8 (PAR) in YE Mar 2025 (-10.7%). OTHER EXPENSES Other Expenses recorded a YoY growth of 12.7%, increasing from €39.8 to €44.9 PAR. This was driven by a +€2.0 PAR rise in Other Expenses within the Rooms department (notably a +€1.2 PAR increase in contract services) and by +€0.6 PAR rise in S&M Other Expenses. Berlin Hotel Market Spotlight 2025 — Source: Cushman & Wakefield & HotStats (data are rounded) — Photo by Cushman & Wakefield Berlin Hotel Market Spotlight 2025 — Source: Cushman & Wakefield & HotStats (data are rounded) — Photo by Cushman & Wakefield Berlin Hotel Market Spotlight 2025 — Source: Cushman & Wakefield & HotStats (data are rounded) — Photo by Cushman & Wakefield About Cushman & Wakefield Cushman & Wakefield (NYSE: CWK) is a leading global commercial real estate services firm for property owners and occupiers with approximately 52,000 employees in nearly 400 offices and 60 countries. In 2023, the firm reported revenue of $9.5 billion across its core services of property, facilities and project management, leasing, capital markets, and valuation and other services. It also receives numerous industry and business accolades for its award-winning culture and commitment to Diversity, Equity, and Inclusion (DEI), sustainability and more. For additional information, visit Christine Mayer Head Of Hospitality Valuation, Germany Cushman & Wakefield
Trade Arabia
01-06-2025
- Business
- Trade Arabia
Major wellness hotels stage top-line comeback
Hotels with major wellness offerings -- those receiving over $1 million or 10% of total revenue from wellness and leisure -- had a strong performance in revenue generation globally in 2024, hospitality advisor RLA Global said in its latest Wellness Real Estate Report. The report was published in partnership with P&L benchmarking firm HotStats for the 6th year in 2025. Average TRevPAR at 'major wellness' properties was 56% higher than at 'minor wellness' hotels, and exceeded that of hotels with no wellness services by a striking 108%. Minor wellness continued to lead in RevPAR and TRevPAR growth in 2024, although major wellness assets increased revenue KPIs by up to 160% in the Upscale hotel category, according to the report findings. Major wellness hotels also fared better in Upscale in terms of absolute profit. 'Major wellness hotels came roaring back in 2024, displaying a standout top-line performance in TRevPAR and RevPAR and impressive year-on-year growth rates in the Upscale category. The all-important bottom line performance showed Major wellness outperforming Minor Wellness in GOPPAR in absolute terms in 2024, but Minor Wellness had higher year-on-year GOPPAR growth compared to 2023,' Roger A Allen, Group CEO of RLA Global, said. 'Major wellness assets in the upscale segment are now outperforming even luxury properties in total revenue per room — a clear sign that traditional assumptions about service levels and positioning are being challenged. This shift could have significant implications for how capital is allocated and how future developments are designed,' Rachael Rothman, Head of Hotels Research and Data Analytics at CBRE, said. Occupancy rates remained largely stable in 2024, slightly up at Major and Minor Wellness hotels and a bit down at hotels with no wellness offerings. Ancillary spending was somewhat lower than in 2023, and accounted for 56% of TRevPAR at major wellness and 38% at minor wellness. 'Occupancy is holding steady, showing that travel demand remains strong. But hotels can't just ride the wave anymore — with revenue growth starting to soften, the real challenge is unlocking more on-property spend, especially in wellness, where guest demand is high but monetisation still lags,' Michael Grove, CEO of HotStats, said. Major Wellness properties had a healthy leisure performance with a profit conversion of 49%. Payroll represents 35% of their leisure income, suggesting significant staff requirements, but departmental expenses are minimal at 16%, reflecting efficient operational spending. Major Wellness was the only group that could increase F&B revenue per occupied room in 2024, but just by 1% – suggesting that TRevPAR is mainly driven by the rooms and leisure departments. 'As wellness offerings evolve, it's clear that operational efficiency and targeted F&B concepts in minor wellness properties are driving profitability, while major wellness must look beyond traditional offerings to sustain growth,' Edward Harvey, Director at Elevate FB, said. Important industry trends the Wellness Real Estate Report identified in 2025 include the return to foundational health habits increasingly driving wellness space design, experiences outvaluing opulence in luxury living, and hotels prioritise sleep to repeat business, among others.
Hospitality Net
29-05-2025
- Business
- Hospitality Net
Major Wellness Hotels Stage Top-Line Comeback in 2024
Major Wellness hotels had a standout top-line performance in 2024, generating more than twice as much TRevPAR as No Wellness hotels. Minor Wellness posted the highest rise in RevPAR and TRevPAR growth during 2024 and were the best performers in the Luxury and the Upper Upscale categories. Occupancy remained largely stable across the board in 2024. Average ancillary revenue, a key part of TRevPAR, was somewhat lower than in 2023. Major Wellness outperformed Minor Wellness in leisure performance and was the only group that could also raise per-room F&B revenue, albeit just slightly. Minor Wellness continued to lead in profit conversion, although Major Wellness hotels sharply improved GOPPAR results in the Upscale category Hotels with Major Wellness offerings –– those receiving over $1mn or 10% of total revenue from wellness and leisure –– had a strong performance in revenue generation globally in 2024, hospitality advisor RLA Global said in its latest Wellness Real Estate Report, published in partnership with P&L benchmarking firm HotStats for the 6th year in 2025. Average TRevPAR at Major Wellness properties was 56% higher than at Minor Wellness hotels, and exceeded that of hotels with no wellness services by a striking 108%. Minor Wellness continued to lead in RevPAR and TRevPAR growth in 2024, although Major Wellness assets increased revenue KPIs by up to 160% in the Upscale hotel category, according to the report findings. Major Wellness hotels also fared better in Upscale in terms of absolute profit. 'Major Wellness hotels came roaring back in 2024, displaying a standout top-line performance in TRevPAR and RevPAR and impressive year-on-year growth rates in the Upscale category. The all-important bottom line performance showed Major Wellness outperforming Minor Wellness in GOPPAR in absolute terms in 2024, but Minor Wellness had higher year-on-year GOPPAR growth compared to 2023,' Roger A. Allen, Group CEO of RLA Global, said. 'Major Wellness assets in the upscale segment are now outperforming even luxury properties in total revenue per room — a clear sign that traditional assumptions about service levels and positioning are being challenged. This shift could have significant implications for how capital is allocated and how future developments are designed,' Rachael Rothman, Head of Hotels Research and Data Analytics at CBRE, said. Occupancy rates remained largely stable in 2024, slightly up at Major and Minor Wellness hotels and a bit down at hotels with no wellness offerings. Ancillary spending was somewhat lower than in 2023, and accounted for 56% of TRevPAR at Major Wellness and 38% at Minor Wellness. 'Occupancy is holding steady, showing that travel demand remains strong. But hotels can't just ride the wave anymore — with revenue growth starting to soften, the real challenge is unlocking more on-property spend, especially in wellness, where guest demand is high but monetisation still lags,' Michael Grove, CEO of HotStats, said. Major Wellness properties had a healthy leisure performance with a profit conversion of 49%. Payroll represents 35% of their leisure income, suggesting significant staff requirements, but departmental expenses are minimal at 16%, reflecting efficient operational spending. Major Wellness was the only group that could increase F&B revenue per occupied room in 2024, but just by 1% – suggesting that TRevPAR is mainly driven by the rooms and leisure departments. 'As wellness offerings evolve, it's clear that operational efficiency and targeted F&B concepts in Minor Wellness properties are driving profitability, while Major Wellness must look beyond traditional offerings to sustain growth,' Edward Harvey, Director at Elevate FB, said. Important industry trends the Wellness Real Estate Report identified in 2025 include the return to foundational health habits increasingly driving wellness space design, experiences outvaluing opulence in luxury living, and hotels prioritise sleep to repeat business, among others. The annual Wellness Real Estate Report and its mid-year updates evaluate average hotel performance based on HotStats data covering over 11,000 Major, Minor and No Wellness hotels of different classes worldwide. Processing property-level KPI results, such as ADR, occupancy rates, TRevPAR, GOPPAR and GOP, the report and its updates present how wellness contributes to hotel revenue flows and operating costs, and what effects it has on margins and profits. DOWNLOAD THE REPORT About RLA Global RLA Global is a leading boutique advisory firm, specializing in resorts and destinations, mixed-use developments, and complex hospitality and tourism assets. We engage projects from a highly strategic perspective right down to the finest details, encompassing the entire life-cycle of leisure and hospitality assets. The firm has a proven track record of 100+ high-profile projects, across four continents. RLA Global is recognized by the European Travel Award as one of the Best International Leisure and Hospitality Advisors.
