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 The Winter Olympic Games Allowed the Torino Hotel Industry
to Post Record Monthly Occupancy Rate of 91.6%
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Gold Medal for the Torino hotel industry in February, 2006 

Paris, 23 March 2006

  • In February the hotels have posted record performances: + 222% growth of the RevPAR with an occupancy rate in the neighborhood of 92% during the month of February. 
  • These excellent results allow hoteliers in Torino to post a 16,5% increase in RevPAR over the 12 cumulated months until the end of  February 2006.


Monthly and cumulated results of the hotel industry in Torino
February 2006

Occupancy rate   OR spread (pts)  Average room rate  Evolution  ARR %   RevPAR Evolution RevPAR %
February 2006  91.6% +35.7 189.5 +96.8 173.5 +222.2
Cumul 12 months until en February 62.5% +5.0 105.2 +7.2 65.7 +16.5
Source :MKG Consulting Database, March 2006 - Hotelcompset
Average room rate and RevPR are expressed in euros, all taxes included

The Winter Olympic Games which took place in Torino from 10th to the 26th of February 2006 have allowed the Torino hotel industry to post record monthly performances with an occupancy rate that progressed by 35,7 points to 91,6% and an average rate that increased by 96,8% to 189,50 euros all taxes included. In the end the monthly RevPAR growth (revenue per available room) is exceptional: +222% over the month of February 2006.

These excellent monthly results have enabled the Torino hotel industry to record a RevPAR on the rise by 16,5% over 12 consecutive months. The results for 2006 will be above those of 2005.

If this monthly performance is particularly spectacular, it is logical with regards to the impact of the recent sportive event of an international scope on the local hotel trade :

  • Greece which hosted the 2004 Summer Olympic Games, recorded a monthly RevPAR increase of + 137% in August 2004.
  • In 2004 again, the European Football Championship in Portugal allowed the hotel trade of the whole country to post a rise in RevPAR of more than 70% in June.
  • The Football World Cup in 1998 allowed France to post RevPAR increases of 30% for the months of June and July.
Following the example of 2004, the year 2006 is marked by two major sportive events, the Torino Olympic Games but also the Football World Cup in Germany. As such the performance of the hotels in Torino is an excellent sign of what await the hotels located in the 12 German cities that will host the football meetings.

MKG Consulting estimates that the Football World Cup should generate, in Germany, 4 to 6 points of additional growth of the RevPAR over the whole year.  

Methodology

MKG Consulting is the leader in consulting for the Hotel, Tourism and Catering sector, and has the largest hotel database in the world outside the USA, with a good representation of all the hotel segments. MKG database’s monthly program is based on a sample of 10 000 corporate chain hotels, representing 1 000 000 rooms (sample growth of 10% in 2005).

Since September 2004, the MKG Consulting database proposes a program that allows the daily monitoring of activity indicators for each hotel. This program counts 1 500 hotels and 125 000 rooms in France which makes it the most developed daily program in Europe.

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Contact:

Georges Panayotis
33 (0)1 56 56 87 90
georges.panayotis@mkg-group.com
 

Also See: Increased Average Rates and Improved Occupancy Continue Through First 9 Months of 2005 for European Hotel Industry; Business and Leisure Tourists Have Adapted to the Uncertain Environment / November 2005

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