The German chain hotel market ended the year with a
1.8% increase in Revenue per Available Room (RevPAR), making it one of
the best-performing European countries in 2008.
According to MKG Hospitality’s market monitoring
database, Hotel CompSet, Average Daily Rate (ADR) rose by 3.9%
compared to 2007, whilst Occupancy Rate (OR) saw a slight
reduction of 1.3 percentage points.
Budget and Midscale chain hotels achieved the
best results in 2008, both with a 3.1% increase in RevPAR, fuelled
by a 6.2% and 5.5% increase in ADR, respectively.
The Upscale segment only managed a 0.9% increase
in RevPAR, whilst OR weakened in all categories.
“We can expect this trend to continue during
2009’s economic downturn, as people cut back on expenses and
travel less,” said Director of Development, MKG Hospitality, Vanguelis Panayotis. “Germany particularly relies on the MICE
sector, which is also forecasted to suffer this year. The economic
crisis will continue to force many businesses to cut back on
business travel as much as possible, as well as spend a lot less
on marketing and promotions. Furthermore, there are fewer trade
fairs planned in 2009.”
positive performance in 2008 was fuelled by high RevPAR increases
in Essen (18.7%) and Dusseldorf (16.3%) for example. According to
Panayotis, these destinations hosted a great deal of trade fairs,
consequently boosting their demand and allowing hoteliers to raise
average selling prices.
Senior Vice President Europe, Mövenpick Hotels &
Resorts, Ola Ivarsson, said, “There is no doubt that the market
will contract and we will see some capacity increases continue
from projects already started. However, we also see that many
customers are now moving away from the 5-star luxury brands to the
upscale segment, where Mövenpick is well positioned.”
Switzerland achieved an 8.5% increase in RevPAR for 2008, driven
by a 9.7% rise in ADR. The Midscale segment was especially buoyant
with RevPAR soaring 12.6%. Although promising results, these
figures mainly represent key cities in Switzerland – heavily
revolving around business travel, summits and conferences.
Like in Germany, Switzerland’s MICE segment is also expected to
somewhat shrink in 2009, as Associate Director, Turicum Hotel
Management, Konrad de Vries explained, “Switzerland, as compared to
Germany entered the meltdown cycle about two or three months later
and as such RevPAR growth reflects the good performance of the
first 10 Months of 2008.”
“We experienced a down-trading in the
MICE Market (from luxury/first class to mid-market hotels), and
the AIG Syndrome with regards to Corporate expenditure. As a
result, the branded mid-market hotel sector will benefit and do
well in 2009, whilst the upscale sector, with or without
discounting, will be back to 2001’s RevPAR’s.”
on its own stayed clear from the negative zone, Austria’s global
RevPAR decreased by 1%, mainly due to a four percentage point
reduction in OR and only a modest increase in ADR (4.6%).
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