The Malta Independent 22 May 2019, Wednesday

Q4 2018 survey: 4-star hotels with higher gross operating profits; 3, 5 star with marginal decrease

Friday, 15 March 2019, 15:32 Last update: about 3 months ago

Achieved room rates continued to improve and contributed to higher gross operating profits in the 4- star segment, according to the findings of the Deloitte hotel performance survey for the fourth quarters of 2018.

On the other hand, the 5-star and 3-star categories reported a marginal decline in profits when compared to the same period last year.

Year to date


On a year to date basis, 5-star hotel rates reported an increase of 4.6%, which was however muted by a decline of 2% in occupancy levels and a 0.6% decline in non-accommodation income. Overall, total REVPAR increased by 0.8%. Total operational costs on a year to date were contained with average gross operating profit of 5-star hotels remaining stable at roughly €25,000 per available room.

4-star occupancy rates were also up by 3.6%. Average daily rates increased by 6.4% and non-accommodation income increased marginally by 1%. Overall, total REVPAR increased by 8.2%. Operational and payroll costs during 2018 both increased by 6.6%. The net impact on the segment’s bottom line profitability was an additional €1,438 in gross operating profit per available room, which puts average GOPPAR of the 4- star segment for the year at €15,455.

The reported trends for the 3-star sector show an overall increase in all the main KPIs, except occupancy rates, which fell from 84% to 82% on a year to date basis. Total revenue for the twelve months of 2018 is reported to have increased by 2.4%. This revenue growth was however outmatched by higher overheads which in turn resulted in an overall drop of €893 per available room in the average profitability of 3-star hotels for 2018.

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