LONDON—The European hotel industry posted mixed year-over-year results when reported in U.S. dollars, euros and British pounds for July 2009, according to data compiled by STR Global.
Figures for occupancy, average daily rate and revenue per available room ranged from double-digit losses to double-digit gains, depending on the market and the currency used for comparison.
“Although we have yet to see any clear signs of real improvement, there is some positive news in Europe, and the figures show that not all areas are still falling”, said James Chappell, managing director of STR Global. “As we have seen all year, Europe’s four main regions have split along distinct lines, with Northern Europe trending in a more positive direction and Eastern Europe falling the most. Looking at the July numbers, specifically the year-to-date figures, we are seeing that when markets are improving, it is driven by an improvement in the occupancy numbers, whereas those markets that are still deteriorating are almost exclusively being caused by a continued drop in the rate.
“The news from Northern Europe, which includes the U.K. and Scandinavia, is positive and trending in the right direction”, Chappell continued. “After starting the year on a negative RevPAR percent change of -24 percent, this has improved to a 20-percent decrease by the end of July and has been caused by a stabilisation in the fall in average room rates combined with a rise in the occupancy numbers. On the other side of the spectrum, Eastern Europe continues to post bad news, with Eastern Europe’s year-to-date RevPAR percent change exceeding a 36-percent decrease even though the occupancy percent-change numbers have been steadily improving since the beginning of the year”.
Year-over-year July 2009 figures for Europe (U.S. dollars, euros and British pounds):
| |
Europe
|
% change
|
| Occupancy |
66.8%
|
-4.2%
|
| ADR (U.S. dollars) |
$130.60
|
-20.3%
|
| ADR (euros) |
€92.90
|
-11.6%
|
| ADR (British pounds) |
£79.41
|
-4.0%
|
| RevPAR (U.S. dollars) |
$87.29
|
-23.6%
|
| RevPAR (euros) |
€62.09
|
-15.4%
|
| RevPAR (British pounds) |
£53.07
|
-8.1%
|
Source: STR Global
Highlights from key market performers for July include (year-over-year results, all currency figures are in euros):
• Glasgow, Scotland, was the only key market to report increases in all three key metrics. Occupancy was up 8.3 percent to 81.2 percent, ADR rose 3.2 percent to EUR76.52, and RevPAR increased 11.8 percent to EUR62.11.
• Venice, Italy, experienced the largest occupancy increase, jumping 10.3 percent to 69.8 percent.
• Four markets reported occupancy decreases of more than 10 percent: Budapest, Hungary (-17.1 percent to 56.3 percent); Madrid, Spain (-14.5 percent to 51.6 percent); Geneva, Switzerland (-14.2 percent to 65.3 percent); and Brussels, Belgium (-11.8 percent to 53.7 percent).
• Tel Aviv, Israel, posted the largest ADR increase, rising 16.5 percent to EUR171.83, followed by Geneva with a 13.5-percent increase to EUR266.63.
• Two markets reported ADR decreases of more than 20 percent: Moscow, Russia (-38.5 percent to EUR121.55) and Madrid (-21.0 percent to EUR81.84).
• Tel Aviv reported the largest RevPAR increase, up 12.8 percent to EUR131.52.
• Six markets reported RevPAR decreases of more than 20 percent: Moscow (-43.5 percent to EUR74.31); Madrid (-32.5 percent to EUR42.24); Prague, Czech Republic (-23.2 percent to EUR42.80); Manchester, England (-22.0 percent to EUR50.91); Barcelona, Spain (-21.5 percent to EUR76.47); and Birmingham, England (-20.3 percent to EUR38.22).
Performance of key countries in July (all monetary units in local currency):
| Country |
Occupancy
|
% change
|
ADR
|
% change
|
RevPAR
|
% change
|
| Germany |
61.3%
|
-1.5%
|
EUR70.67
|
-6.4%
|
EUR43.30
|
-7.8%
|
| Italy |
59.5%
|
-4.0%
|
EUR128.60
|
-8.0%
|
EUR76.48
|
-11.6%
|
| Russia |
57.0%
|
-11.6%
|
RUB4923.97
|
-25.7%
|
RUB2807.98
|
-34.3%
|
| Spain |
63.6%
|
-9.0%
|
EUR85.01
|
-13.3%
|
EUR54.06
|
-21.2%
|
| United Kingdom |
76.3%
|
-2.5%
|
GBP79.09
|
-9.6%
|
GBP60.33
|
-11.9%
|
View Global Hotel Review for July 2009.
About STR & STR Global:
For more than 20 years, Smith Travel Research has been the recognized leader for hotel industry benchmarking and research. Smith Travel Research and STR Global offer monthly, weekly, and daily STAR benchmarking reports to more than 37,000 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 or www.HotelNewsNow.com.
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KAuernheimer@strglobal.com
+44 (0)207 922 1961
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