Hotels in Turin beat Italian RevPAR Decline in October 2008

The latest hotel performance data available from STR Global shows Italian revenue per available (RevPAR) room dropping 20% to €99 in October 2008. Italian hoteliers have seen declines in RevPAR since May 2008, and October was no different as Turin was the lone major city to report RevPAR growth - up 18%.

Across Italy, October occupancy dropped 13 percentage points from October 2007 to 66%, and the month’s average room rates declined 9% from last year to €149. The October results worsen the year-to-date figures when compared with year-to-October 2007. The first 10 months of 2008 show a 6% occupancy decline to 61%, a 2% drop in average rate to €150, and an 8% decrease in RevPAR to €92.

“Demand has been falling in the main Italian cities since spring this year,” said James Chappell, managing director of STR Global. “Milan and Turin have only started to see declining demand levels since July and September, respectively, which will put pressures upon their occupancy and average rate levels as we have seen in other Italian cites.”

Year-to-October 2008 Results for Selected Italian Markets