HENDERSONVILLE, Tennessee and LONDON—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.”
Year-over-year January 2009 figures for Europe (U.S. dollars, euros and British pounds):
Source: STR Global
|| % change
|ADR (U.S. dollars)
|ADR (British pounds)
|RevPAR (U.S. dollars)
|RevPAR (British pounds)
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 percent to EUR232.22 and RevPAR +8.5 percent to EUR114.51); Munich, Germany (ADR +4.5 percent to EUR102.16 and RevPAR +0.6 percent to EUR58.20); and Salzburg, Austria (ADR +6.7 percent to EUR107.08 and RevPAR +2.9 percent to EUR53.15).
• Key markets reporting occupancy decreases greater than 20 percent include: Amsterdam, Netherlands (-21.6 percent to 50.4 percent); Athens, Greece (-27.0 percent to 37.1 percemt); Libson, Portugal (-21.0 percent to 38.5 percent); Prague, Czech Republic (-22.9 percent to 37.2 percent); and Venice, Italy (-21.5 percent to 33.9 percent).
• Key markets reporting increases in ADR include: Düsseldorf, Germany (+1.5 percent to EUR91.20); Geneva (+26.8 percent to EUR232.22); Lisbon, Portugal (+2.0 percent to EUR89.52); Munich (+4.5 percent to EUR102.16); Salzburg (+6.7 percent to EUR107.08); and Zurich (+0.5percent to EUR153.37).
• Six key markets ended the month with decreases in RevPAR of more than 30 percent, including: Athens (-31.3 percent to EUR43.34); Birmingham, England (-30.1 percent to EUR37.39); Gothenburg, Sweden (-30.9 percent to EUR39.00); Moscow, Russia (-40.4 percent to EUR71.70); Reading/M4 Corridor, England (-32.1 percent to EUR41.18); and Venice (-31.9 percent 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,” said Chappell. “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”
Performances of key countries in January (all monetary units in local currency):
*percentages are increases/decreases for January 2009 vs. January 2008
View Global Hotel Review for January 2009.
About STR & STR Global:
For more than 20 years, Smith Travel Research has been the recognized leader for lodging industry benchmarking and research. Smith Travel Research 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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