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RevPAR down 19.2% but the worst should be over for European hoteliers

A report produced quarterly by Deloitte UK, the business advisory firm, has found that year-to-September hotel performance fell across Europe. Revenue per available room (revPAR) performance in European hotels was down 19.2%. This decline was driven by a 12.3% drop in average room rates and a 7.8% drop in occupancy.

Commenting, Raphael Aloisio Partner of Tourism Hospitality & Leisure at Deloitte in Malta, said: “The past year has been one of turbulence for European hoteliers as the economic crisis has taken its toll. Soaring unemployment, and the strength of the Euro against many world currencies has seriously impacted hotel performance in Europe”.

“Although slightly cushioned by marginally lower declines in achieved occupancy levels over the summer months, generally speaking hotels in Malta experienced similar trends to its European Counterparts”.

“As many consumers held back on travelling abroad, and businesses tightened their purse strings on corporate travel - hotels, airlines and tour operators all saw a fall in performance and sales this year. Every city across the region reported declines in revPAR year-to-September, some hit more severely than others.”

In the euro zone, hoteliers saw revPAR fall 16.8% as the strength of the Euro against Sterling deterred travellers to the traditional hotspots of Spain, France and Italy. However, countries outside the euro zone did not come out unscathed, with revPAR dipping in excess of 20%, as average room rates drove the decline, according to data from STR Global.

Looking ahead, Marvin Rust, Hospitality Managing Partner at Deloitte UK, said: “We are already seeing signs of economic recovery across Europe. Consumer confidence has started to improve as well as a number of countries including Germany, France, Greece and Portugal closing the door on the recession. It will be an uphill struggle for some months to come before hoteliers start to post positive results once more, however it looks like the worst may be over and the New Year should see a reversal of part of the revPAR declines seen in 2009.”

Hotel performance of selected European markets year-to-September 2009

 

Occupancy
(%)

Average room
rates

RevPAR

RevPAR
change (%)

Regional performance (in euro)

Europe

61.6

94

58

-19.2

Euro zone

59.5

97

58

-16.8

Non-euro zone

63.5

92

58

-21.9

Euro zone markets (in euro)

 

 

 

Amsterdam

69.6

121

84

-22.6

Athens

57.7

124

71

-25.4

Barcelona

64.4

113

73

-22.5

Berlin

67.6

80

54

-9.6

Brussels

61.6

103

63

-19.0

Cologne

59.3

90

53

-15.6

Dublin

64.3

88

57

-23.9

Düsseldorf

55.8

84

47

-33.3

Frankfurt

57.6

107

62

-10.9

Hamburg

71.7

92

66

-7.3

Helsinki

60.4

101

61

-17.2

Lisbon

59.2

82

49

-17.6

Madrid

55.6

91

51

-30.5

Milan

56.6

142

80

-23.2

Munich

64.6

91

59

-19.2

Paris

74.0

167

124

-13.9

Rome

62.9

138

87

-15.1

Salzburg

60.3

95

57

-19.3

Venice

58.6

261

153

-15.6

Vienna

64.0

95

61

-19.6

Non-euro zone markets (in local currency)

 

 

Aberdeen

70.3

77

54

-6.5

Budapest

53.5

19630

10495

-18.2

Cardiff

68.6

61

42

-7.5

Copenhagen

63.3

799

506

-19.7

Edinburgh

76.8

80

62

-4.2

Geneva

60.0

342

205

-22.3

Glasgow

75.5

63

48

-1.1

Gothenburg

65.7

906

595

-8.2

Istanbul

64.4

297

191

-9.0

London

79.8

113

90

-7.6

Manchester

68.0

67

45

-15.7

Moscow

57.8

6443

3726

-30.5

Oslo

63.1

943

594

-12.2

Prague

56.6

2053

1161

-26.4

Stockholm

67.2

1043

701

-11.7

Tel Aviv

62.3

884

550

-10.7

Zurich

68.1

214

145

-24.0

Source: STR Global

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Contacts

Name:
Raphael Aloisio
Company:
Deloitte
Job Title:
Leader Financial Advisory
Phone:
+356 23432000
Email
raloisio@deloitte.com.mt

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