LONDON – With a growing sample of 15 hotels in Brugge, STR Global, the leading provider of market information to the world’s hotel industry, brings the city’s performance since the start of the year into focus. The historic West Belgium city shows interesting performance patterns between weekday and weekend business, as well as when compared to other Belgian cities.
In a difficult global market, the year-on-year results for weekend business in Brugge (Friday and Saturday nights) are a highlight. Double-digit increases in average daily rate (ADR) February (+12.9 percent) and April (+10.0 percent) resulted in revenue per available room (RevPAR) gains in both months. These results were helped partly by Valentine’s Day falling on a Saturday in February 2009 and Easter being in March in 2008 and April in 2009. The picture for weekday business (Sunday through Thursday nights) isn’t as promising. Despite some resistance to rate cuts, falls in occupancy because of lower meetings, incentive, conventions and exhibitions (MICE) business and group business have had a greater impact on yield with RevPAR falling in each of the first four months of the year. (See the graph below.)
Brugge – Weekday (WD) and Weekend (WE) year-on-year percentage change by month
Source: STR Global
In terms of absolute performance, Brugge has struggled compared with other Belgium cities. For the first quarter of 2009 Brugge shows the lowest RevPAR (€39.82) amongst three other Belgian cities also tracked by STR Global. (See chart at left below.) Despite the poor overall market conditions Brugge has faired better than some. The year-on-year RevPAR decline for the first quarter of 2009 for Brugge is down 12.1 percent, second only to the capital Brussels with a10.3-percent decrease. (See chart at right below.) “Brugge appears to be coping relatively well in the current downturn with operators making valiant attempts to hold rates, particularly focusing on rate maintenance at weekends in this leisure-based market,” said James Chappell, Managing Director of STR Global.
RevPAR performance for selected cities in Belgium for first quarter 2009
Source: STR Global
About STR & STR Global:
For more than 20 years, STR has been the recognized leader for lodging industry benchmarking and research. STR and STR Global offer monthly, weekly, and daily STAR benchmarking reports to more than 36,000 hotel clients, representing nearly 5 million rooms worldwide. STR is headquartered in Hendersonville, Tennessee, and STR Global is based in London. For more information, visit www.strglobal.com.
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