Andersen has tracked the performance of an identical sample of 66 hotels through July 1999 to July 2001 to identify how the market has moved.  Our analysis reveals that 2001 July performance in average room rate terms is nearly one percent higher than in 1999, although demand has fallen.  This would indicate that rate growth is continuing despite the fall in demand, although at a rate lower than inflation.  Previous analysis by Andersen also reveals that typically there is up to an 18-month lag time between a fall in occupancy and a fall in room rates.  This is due to many hotels having existing contracts in place, for both commercial and conference business, which have been negotiated at rates before the fall in demand.  Conversely, after any recession room rates typically take up to 18 months to recover once improvements in occupancy begin.  Andersen therefore believe that although average room rates may decline by the year-end, the fall will be marginal. 

Launched in 1996 as the definitive source of hotel performance data outside North America, the Andersen Hotel Industry Benchmark Survey comprises information gathered from more than 5,000 hotels in 300 markets across 140 countries.  The survey currently tracks hotel performance everywhere outside the North America.  Regional surveys are produced for Asia Pacific, the Caribbean and Latin America, Europe and the Middle East and Africa.  These are supported by in-depth country/city reports for Australia, Germany, Italy, New Zealand, South Africa, the UK and London.  Further surveys are underway for Benelux, Japan and Spain.