After expecting a slight revival in the hotel investment market at the beginning of the year, our latest Hotel Market Spotlight for Berlin now looks at the hotel performance itself.
How have profits and revenues developed within a year (H1 2024 vs. H1 2023)? Have operating costs and expenses increased? And what proportion do wage and labour costs account for? Here are the key findings:
Spotlights
- Despite considerable cost pressure, the full-service branded hotels in Berlin recorded rising profits in the first half of 2024.
- The occupancy rate reached 71% in the first half of 2024, up from 68% in H1 2023.
- While utility costs fell by 23%, the overall operating expenses increased by 13%. Labor costs recorded the strongest growth of 10% compared to the previous year.
- Nevertheless, thanks to 4% revenue growth, the GOP (gross operating profit) per available room rose by 2%.
