Expo Milan 2015 brings spin-off wealth to city.
Not only did Expo Milan 2015 itself chalk up a healthy €14.2m overall gain: the city’s hotel sector, too, achieved a spectacular year of economic performance.
According to an article on the trade-sector website hospitality.net, the “massive” increase in profit per hotel room by the close of the year had reached 16.4 per cent – including both the six months of Expo and the six months when it was closed.
During the 1 May to 31 October period alone when Expo Milan 2015 was open to the public, calculated the authors, hotels in Milan achieved a an almost 30 per cent year-on-year increase in “revenue per available room”, a parameter widely used in the industry for calculating economic viability.
Rates charged for overnights seem to have been the principal driver behind the growth. The increase in revenue, states the report, was primarily due to an almost 26 per cent increase in average room rate, thanks to several months of significant uplift recorded in May (+19.2 per cent), June (+28.6), September (+25.3) and during the closing weeks of October (+32.3), showing that as the exhibition drew to a close, sleeping in a hotel cost significantly more.
The greatest year-on-year growth in room rates in the six-month period of the Expo was in the “groups” segment, which increased by some 66 per cent from around €77during the same period in 2014 to almost €130 in 2015, continues the analysis.
Summing up, the gross operating profit per available room, a key performance indicator for the hotel industry after taking operating costs into consideration, increased in 2015 from around €45 to over €62, the report concluded.