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The European hotel industry reported mixed
year-over-year results when reported in U.S. Dollars, Euros and British
Pounds for January 2009, according to data compiled from STR Global.
Figures for occupancy, average daily rate and
revenue per available room, range from double-digit losses to
double-digit gains, depending on the market and the currency used
for comparison.
“January was a tough month for hotels in
Europe,” said James Chappell, managing director of STR Global.
“The continuing uncertainty in the financial markets across the
region and the implosion of the Irish economy are real pressure on
the Euro zone and Europe in general. As we have seen before, the
pattern seems to be falling rate and occupancy concurrently.”
Key year-over-year market performers include
(all currency figures are in Euros):
• Three key markets reported increases in two
out of the three key performance measurements: Geneva, Switzerland
(ADR +26.8% to EUR232.22 and RevPAR +8.5% to EUR114.51); Munich,
Germany (ADR +4.5% to EUR102.16 and RevPAR +0.6% to EUR58.20); and
Salzburg, Austria (ADR +6.7% to EUR107.08 and RevPAR +2.9% to
EUR53.15).
• Key markets reporting occupancy decreases
greater than 20% include: Amsterdam, Netherlands (-21.6% to
50.4%); Athens, Greece (-27.0% to 37.1%); Lisbon, Portugal (-21.0%
to 38.5%); Prague, Czech Republic (-22.9% to 37.2%); and Venice,
Italy (-21.5% to 33.9%).
• Key markets reporting increases in ADR
include: Düsseldorf, Germany (+1.5% to EUR91.20); Geneva (+26.8%
to EUR232.22); Lisbon, Portugal (+2% to EUR89.52); Munich (+4.5%
to EUR102.16); Salzburg (+6.7% to EUR107.08); and Zurich (+0.5% to
EUR153.37).
• Six key markets ended the month with decreases
in RevPAR of more than 30%, including: Athens (-31.3% to
EUR43.34); Birmingham, England (-30.1% to EUR37.39); Gothenburg,
Sweden (-30.9% to EUR39.00); Moscow, Russia (-40.4% to EUR71.70);
Reading/M4 Corridor, England (-32.1% to EUR41.18); and Venice
(-31.9% to EUR40.58).
“Southern Europe, specifically Spain, Portugal
and Italy, with limited market visibility and less sophisticated
revenue management practices seem to be unable to hold the rates
and are subsequently in effect doubling up the drops,” Chappell
added. “Likewise, less mature brands led markets like Eastern
Europe and are having the same issue. The next few months will
continue the pattern, and hoteliers are going to have to decide
between short-term relief and long-term rate strategies”
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January 2009
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