Hotel Online  Special Report

advertisements

,

Hotel Industry in Europe: 
Record Drop in the RevPAR in April 2003, 
But Slight Decrease of the Mid-term Trend

 
  • In Europe, the RevPAR fell by 13.5% in April, i.e. a drop equivalent to that of October 2001
  • In April, the hotel industry in Europe recorded a drop of 4.8 points in the occupancy rate, and a drop of 6.9% in the average daily rate.
  • The hard-budget hotel industry held up well and recorded RevPAR growth
  • Among the major countries, France limited the damage, and posted the smallest drop in the RevPAR
  • On the last twelve months, the RevPAR only decreases by 1.1%
Results for Corporate Operated Hotel Chains
By Country: April 2003, All Segment
Country
OCC% 
April 2003
Chge OCC% 04-03 / 04-02 
ADR 
April 2003
Chge ADR 04-03 / 04-02 
RevPAR
April 2003
Chge RevPAR 04-03 / 04-02 
GERMANY
51,7%
-8,3
73,8
-15,7%
38,1
-27,4%
AUSTRIA
60,3%
-2,2
80,1
0,0%
48,3
-3,6%
BELGIUM
63,3%
-6,7
83,1
-13,4%
52,6
-21,7%
SPAIN
67,8%
-6,2
89,4
-4,5%
60,6
-12,4%
FRANCE
68,0%
-1,3
61,8
-3,6%
42,0
-5,4%
ITALY
61,7%
-6,3
124,0
-2,5%
76,5
-11,5%
NETHERLANDS
70,1%
-11,5
95,3
-12,5%
66,8
-24,8%
PORTUGAL
68,3%
-0,5
85,1
0,8%
58,1
0,0%
UNITED KINGDOM
67,4%
-2,6
116,8
-8,0%
78,7
-11,3%
European Union
63,3%
-4,8
89,1
-6,9%
56,4
-13,5%
Source : MKG Consulting Database – May 2003
Official statistics from corporate operated hotel chains
ARR and RevPAR are in EUROS

Results for Corporate Operated Hotel Chains
Per Category: Apirl 2003, European Union

Category
OCC% 
April 2003
Chge OCC% 
04-03 / 04-02 
ADR 
April 2003
Chge ADR 04-03 / 04-02 
RevPAR
April 2003
Chge RevPAR 04-03 / 04-02 
0*
77,6%
0,1
27,2
5,2%
21,1
5,3%
1*
75,3%
-0,4
36,2
5,0%
27,3
4,5%
2*
68,7%
-2,4
64,4
0,1%
44,2
-3,2%
3*
60,5%
-6,2
85,4
-4,8%
51,6
-13,7%
4*
60,8%
-5,4
126,6
-9,7%
77,0
-17,1%
Global
63,3%
-4,8
89,1
-6,9%
56,4
-13,5%
Source : MKG Consulting Database – May 2003
Official statistics from corporate operated hotel chains
ARR and RevPAR are in EUROS

Record drop in all categories combined in April

The revenue per available room globally recorded a fall in growth by 13.5% in April throughout the European Union zone. This drop is the largest that has been recorded since October 2001, the previous record drop in the RevPAR recorded by the MKG Consulting Database since 1997. The 4* category registered a large drop in activity: +17.1% in the RevPAR. The 3* also felt the negative effects of the war in Iraq and the SARS epidemic (-13.7% in the RevPAR). The budget hotel industry once again demonstrated its good resistance in the face of a gloomy environment. This category of hotel has in essence recorded a jump in its RevPAR in April +5.3% change for the 0* and +4.5% for the 1* versus April 2002

The midterm trend appears to be more encouraging: -1,1% in RevPAR for the last twelve months, the average room rates are increasing by 1.2% while the occupancy rate are decreasing by 1.5 point.

Germany is highly impacted, France limits the damage

At the European level, once again, thanks to its budget hotel industry highly present throughout its territory, France performs well versus the other countries: the RevPAR was down by 5.4% and the occupancy rate only lost 1.3 points. The rates also were clearly down in the other countries (-3.6% in the average daily rates). The record looser in this was Germany, whose average daily rates plummeted by more than 15%. Germany, the heaviest trader with China in Europe, not only underwent the effects of the war in Iraq, but it was also clearly affected by the SARS epidemic. In the end, Germany and Benelux are the zones that were the most heavily impacted in April, while Spain, the United Kingdom and Italy came out better, though still posting two-figure losses.

In the mid-term, based on the change in the RevPAR over the last twelve months, France profited the best during this economic situation with a rise of 1.2%. In its wake comes the United Kingdom (+0.8%) that limited the damage Germany, on the other hand, was hit hard, recording a drop over twelve months of 8.2% in RevPAR.

France and the Mediterranean countries once more on the podium at the end of 2003?

Even if the worst seems to be over, the path to economic growth has not yet been found. In 2003, countries that offer a developed tourism policy will have probably yet again the opportunity to minimize the impact of an economy that is slowly moving in their hotel industries. This is the case with France, which reaps the benefits from inter-community and domestic tourism. "Long-haul" tourism will be heavily reluctant until confidence returns. Thus, in the months to come, and notably during the summer holiday period, Asian, Middle Eastern, and North African destinations will be penalized to the profit of "sunny European destinations".

Methodology: This study is based on a sample of 5,000 corporate operated hotel chains in Europe, representing 500,000 rooms. The data, gathered monthly from each hotel, is adjusted according to the segmentation of the corporate operated hotel chain supply, and by the weight of each country in the European Union.

These results come from figures supplied by the hotel chains located in France and throughout Europe, of which MKG Consulting is the official statistical supplier.


 
 
Contact:

Georges Panayotis
+33 (0)1 56 56 87 90
bdd@mkg-consulting.com
http://www.mkgconseil.com
Also See: The Worldwide Ranking of Hotel Groups 2003; The World’s Top Ten International Groups Increase Their Supply by 2.6% / MKG / April 2003
The French Hotel Industry Confirms its Solidity in 2002 and Serenely Forecasts a Year 2003, Despite Geopolitical Instability / MKG Consulting / Feb 2003
European Hotel Industry: Like Last Year, France is Doing Better than all its European Neighbours in 2002 / MKG Consulting / Jan 2003
European Hotel Industry: An Encouraging Month of October / MKG Consulting / Dec 2002
Europe’s Hotel Industry: France Posts Record Performance for September, 2002 / MKG Consulting / Oct 2002
Assessment of the Summer Season for the European Hotel Industry / MKG / Oct 2002


To search Hotel Online data base of News and Trends Go to Hotel.Online Search

Home | Welcome! | Hospitality News | Classifieds | Catalogs & Pricing | Viewpoint Forum | Ideas/Trends
Please contact Hotel.Online with your comments and suggestions.