European average daily hotel rates and revenue per available room for the first nine months of the year dropped 19.2 percent and 12.3 percent, respectively, compared with 2008, according to a report released by Deloitte late last week, but the report also indicated "the worst may be over" for European hotels.
Spain saw some of the steepest drops as travel dwindled from the United Kingdom, Germany and France. Barcelona, which had several new hotel openings this year, saw rates fall by 15.7 percent and RevPAR by 22.5 percent. Madrid saw an even steeper drop in RevPAR, 30.5 percent.
Other cities were hurt by new hotels openings, including Prague, where RevPAR fell by 26.4 percent, and Düsseldorf, Germany, where RevPAR dropped by 33.3 percent. Düsseldorf also suffered because of a reduction in its trade fair business, according to the report.
In the United Kingdom, London saw RevPAR drop 7.6 percent during the period, as the country’s unemployment rate reached its highest level in 13 years. London, however, reported the highest occupancy, and Glasgow and Edinburgh in Scotland were the only two cities to see occupancy increase in Europe during the period.
Deloitte hospitality managing partner Marvin Rust said he expected the numbers to improve in 2010. "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," Rust said in a statement. "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."
—Nielsen Business Media
Deloitte Tracks Fall In Hotel Rates, But Sees RevPAR Reversal Ahead
The report indicates that the worst may be over for European hotels.
Deloitte Tracks Fall In Hotel Rates, But Sees RevPAR Reversal Ahead
The report indicates that the worst may be over for European hotels.
