Andersen report: European hoteliers rise to the challenge
Andersen has today released 2001 hotel performance data for major European markets, which show that despite the tough trading conditions in 2001, the industry is bouncing back.
Across Europe hotels reported an average annual occupancy of 66%, a decline of 4.4% on 2000. Encouragingly, average room rates (in euros) moved ahead marginally to reach €112. As would be expected, there was a marked difference in the performance of the market pre and post-September 11. Prior to the events of September 11, revPAR across all European hotels was up 1.8 percent. A decline of 13.9 percent in the last four months of the year resulted in revPAR ending the year at €74, (3.9% down on 2000 levels).
Julia Felton, director of Hospitality Knowledge Services at Andersen commented: “Despite the tough trading conditions during the year, the industry has largely managed to weather the storm”.
Ms Felton added: “2001 proved to be a testing time for hoteliers across Europe, many of whom faced one challenge after another. Even before the year began, we knew that 2001 was not going to be an easy year given the exceptional performance in 2000. Against the backdrop of a slowing global economy, as 2001 progressed the odds stacked up against hoteliers, with the outbreak of Foot and Mouth Disease and the atrocities of September 11 significantly impacting demand. Despite declining occupancy, however, European hoteliers in most cities have risen to the challenge and managed to record increases in average room rates when measured in euros.”
There was a significant variance in the performance of the 40 European markets Andersen tracks, with 16 cities reporting revPAR increases and 24 cities reporting revPAR declines. The only markets to witness double-digit growth in revPAR during 2001 were Moscow, Cardiff and Cyprus and these were also the only markets to report an improvement in occupancy over 2000 levels. The performance of the Moscow market is attributable to the strong recovery of the Russian economy, whilst in Cardiff the market is rebounding from an over-supply situation which depressed demand in 2000, and the city is also benefiting from its new stadium.
2001 annual hotel performance – major gateway cities
|
Occupancy (%) |
Average room rate (€) |
RevPAR (€) |
RevPAR change (%) |
|
|
All Europe |
66 |
112 |
74 |
(3.9) |
|
Amsterdam |
80 |
143 |
115 |
(4.3) |
|
Berlin |
66 |
98 |
64 |
2.4 |
|
Brussels |
69 |
107 |
73 |
(2.8) |
|
Lisbon |
69 |
90 |
62 |
(1.3) |
|
London |
74 |
173 |
127 |
(14.9) |
|
Madrid |
70 |
136 |
96 |
0.6 |
|
Paris |
74 |
183 |
135 |
(0.3) |
|
Rome |
73 |
174 |
127 |
1.3 |
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