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 April Results for the European Hotel Industry: 
Best Monthly Performance in 5 Years

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Paris, 27 May 2005
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  • A RevPAR up by 9.8% in April 2005 versus last year 
  • A combined rise in occupancy rates (+3.3 points) and average daily rates (+4.5%). 
  • The 3* and 4* categories fully benefited from this jump, while growth in the budget categories is more timid
  • Germany broke records with a RevPAR up by 22.7% in April 2005 versus 2004 


Monthly results for corporate chain hotels
by category in Europe in April 2005

Occupancy rate 04/05
Diff. Occ. rate (pts)
Average daily rates 04/05
Change in ADR %
RevPAR 04/05
Change in RevPAR %
0*
73.4%
-1.1
30.7
3.8%
22.6
2.3%
1*
73.6%
-0.2
38.4
1.8%
28.3
1.5%
2*
71.8%
2.5
66.4
3.9%
47.7
7.8%
3*
67.0%
3.8
86.9
4.7%
58.2
11.0%
4*
67.2%
3.9
127.1
3.6%
85.4
10.0%
GLOBAL
68.3%
3.3
95.6
4.5%
65.3
9.8%
Source: MKG Consulting database - Official supplier of chain hotels - May 2005 
Average daily rates and RevPAR expressed in euros incl. VAT

The 9.8% rise in RevPAR registered in April versus last year constitutes the best performance in the European hotel industry in nearly 5 years. Indeed the calendar has been favourable to the European hotel industry: Easter fell in March this year, business tourism profited from a longer period of activity, to the benefit of hotels positioned on this segment. Everything came together to make for excellent results: a combined rise in average daily rates (+4.5%) and occupancy rates (+3.3 points). With the exception of the budget hotel sector, which largely compensated for a drop in its number of visitors by rising average daily rates, all indicators are in the black in all categories. These very good results are driven by the midmarket and upmarket segments. The 3* and 4* categories registered rises equal to or greater than 10%, while 2* hotels rose by 7.8%.

Results of the corporate chain hotel industry
per country in Europe in April 2005 

Occupancy rate 04/05
Diff. Occ. rate (pts)
Average daily rates 04/05
Change in ADR %
RevPAR 04/05
Change in RevPAR %
GERMANY
65.0%
8.1
86.5
7.4%
56.2
22.7%
AUSTRIA
70.2%
0.1
84.1
6.6%
59.1
6.7%
BELGIUM
73.1%
4.1
96.1
12.0%
70.2
18.6%
ITALY
65.8%
-1.5
139.2
1.7%
91.5
-0.6%
NETHERLANDS
79.1%
0.5
97.3
4.9%
77.0
5.5%
UNITED KINGDOM
74.6%
3.7
118.2
7.4%
88.1
13.0%
SPAIN
68.5%
2.9
89.7
0.1%
61.4
4.5%
SWEDEN
62.5%
10.8
118.9
16.8%
74.3
41.2%
DENMARK
65.0%
12.8
153.7
24.6%
99.9
55.1%
FRANCE
67.5%
0.0
70.0
4.3%
47.3
4.3%
POLAND
54.8%
6.2
50.2
-6.5%
27.5
5.5%
HUNGARY
75.4%
3.1
78.5
1.7%
59.2
6.1%
CZECH REPUBLIC
72.8%
-5.5
133.3
-0.5%
97.0
-7.5%
Source: MKG Consulting database - Official supplier of chain hotels - May 2005 
Average daily rates and RevPAR expressed in euros incl. VAT

The majority of European countries follow this upward trend. Only two of them saw a negative RevPAR in April: Italy (-0.6%) which is heavily impacted by the poor results in the domestic economy, and the Czech Republic (-7.5%), which finally registered a logical drop when compared to the excellent occupancy rates registered last year (78.3%).

On the other hand, Germany experienced a month of April that will be for the record books (+22.7% in RevPAR). Numerous professional events, such as the Interpack expo in Dusseldorf, which welcomed 176,000 visitors, and a high level of activity on the seminar segment allowed some cities to reach great results such as Cologne and Düsseldorf. In addition, the trends observed in 2004 continue: the traditional markets of the United States and Japan are strengthening, and Asian customers in general are growing in number. We also note a stronger presence of tourists from the east, notably Poland, the Czech Republic and Russia. 

Belgium, which began the festivities related to its 175th anniversary, also experienced a clear return to good health (+18.6%). Activity in the United Kingdom is far from weakening (+13.0%). Paradoxically, the 4.6% in growth in the French hotel industry, excellent results strictly speaking, pale in comparison to its neighbours.

However, the highest results will in the end have been registered in Northern Europe, in Sweden (+41.2% in RevPAR) and in Denmark (+55.1% in RevPAR). These rises are explained by a rise in both business and leisure customers. 

This fantastic month of April has allowed Europe to post a RevPAR that grew by 3.6% over 12 months, a result that corresponds to MKG Consulting’s forecast for the year, which anticipates a rise in RevPAR of between 4% and 6%.

Methodology

The MKG Consulting Database for Europe contains a sample of 6,000 corporate chain hotels, representing 600,000 rooms in Europe. The data, gathered monthly and for each hotel, is redressed according to the category within the corporate chain hotel supply and by the weight of each country in the European Union.

Contact:

Georges Panayotis
+33 (0)1 56 56 87 90
georges.panayotis@mkg-consulting.com
http://www.mkgconseil.com
Also See: France Hotel Supply Drops Slightly for Second Consecutive Year; The Market Share of Corporate Hotel Brands Gaining on Independent Hotels Supply / March 2005
2004 European Ranking of Hotel Groups; Best Western Holds Top Position of 25 Brands in Europe / MKG Consulting / February 2004
With a RevPAR Increase of 7.4%, Austria Was an Island of Prosperity in the European Hotel Landscape in 2003; Chain Hotel Results in Europe - YTD December 2003 / February 2004


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