• June Hotel Room Rates in the Netherlands and Belgium Outscore Same Period Last Year Due to EURO 2000 Tournament, According to Arthur Andersen Hotel Industry Benchmark Survey

• Istanbul Hotels Lead European Sector in First Half of 2000, with 65% Occupancy, Impressive Gains in Average Room Rate, and Highest Rooms Yield in Euros Compared to Same Period in 1999

There was a similar story in Belgium, where average room rates grew 30% to reach Euro 136 (US$130).  The significant increase in room rate was offset by declines in occupancy of 6% and 4% for the Netherlands and Belgium respectively. However, at around 75%, the performance of both markets was very credible.  The Amsterdam hotel market is still enjoying the highest occupancy of any city surveyed by Arthur Andersen.  Occupancy levels in central Amsterdam reached 89% in June and this, combined with a significant improvement in average room rate, resulted in rooms yield leaping to 33% to reach Euro 157 (US$150).  Reflecting the countrywide trend, hotels in central Brussels also experienced increases in average room rate approaching 30%.  Although tempered by a decline in demand of 6%, rooms yield growth was still 22%, resulting in a rooms yield of Euro 103 (US$98).

Hotels in the Netherlands and Belgium were not the only ones to record an impressive performance in June.  Driven on by EXPO 2000, hotels in Hanover increased their average room rate by nearly 160% to Euro 166 (US$160).  This massive uplift in room rate was delivered at the expense of a 13% fall in occupancy levels to 47%, resulting in a rooms yield of Euro 78 (US$75).  
Generally, visitation to the fair has been weaker than expected, and perhaps the very high rates being charged by hotels is a contributing factor.  

The Italian city of Bologna was also a star performer in June, with rooms yield increasing by over 80% to Euro 87 (US$83).  The Bologna Conference, jointly organised by the OECD and the Italian Ministry of Industry, was the reason for this. Attendees from over 50 countries meant hoteliers were able to boost occupancy 29% over 1999 levels to reach 80%. Average rate growth when measured in Euros was an impressive 41%, resulting in an average room rate of Euro 109 (US$105).

Despite the excellent performance of both the Amsterdam and Brussels hotel markets in June, this was not sufficient to make them the best performing hotel markets "in terms of year-on-year growth" across Europe for the first six months of 2000.  Hotels in Istanbul were the star performers, reporting a 24% increase in room occupancy to 65%.  Combined with impressive advances in the average room rate, this made Istanbul the city with the highest increase in rooms yield over the same period last year, when measured in Euros.  The 45% increase resulted in an overall rooms yield of Euro 92 (US$88).  It should be remembered however, that 1999 was the worst year in almost a decade for the Turkish hotel industry.  The late impact of the Asian and Russian crises, the war in Kosovo, PKK terrorist threats and finally the earthquakes all contributed to poor performance in 1999.

The Prague hotel market came second in terms of yield growth over 1999 levels, when measured in Euros, for the first six months of the year.  Again a combination of occupancy and average rate growth contributed to the 33% increase in rooms yield to Euro 68 (US$65).  Prague is currently designated as one of the European Cities of Culture and the many events associated with this have contributed to the improved performance.  Hotels in Prague also suffered from a decline in visitation due to the war in Kosovo during 1999, so trading conditions appear more favourable this year, as they are being compared to adverse performance levels for the first six months of 1999.

Overall, hotel trading across the whole of Europe was very buoyant during the first six months of the year.  Virtually, all markets surveyed recorded double-digit growth in rooms yield over the same period in 1999, when measured in Euros.  Julia Felton, Global Knowledge Manager, Arthur Andersen, concludes that, �With only one European market that we track recording negative rooms yield growth, the outlook for the rest of 2000 looks very positive indeed.  With the Euro-zone recording strong economic growth, we anticipate that the healthy trading conditions experienced during the first six months of the year will continue for the foreseeable future.�  
 

Launched in 1996 as the definitive source of hotel performance data outside North America, the Arthur Andersen Hotel Industry Benchmark Survey comprises information gathered from more than 3,500 hotels in 200 markets in 140 countries.  The Survey currently tracks hotel performance everywhere outside the Americas.  Regional surveys are produced for Asia Pacific, Europe, and the Middle East and North Africa.  These are supported by in-depth country/city reports for  Australia, Germany, South Africa, the UK and London.  New regions under development include South America and the Caribbean.  The European survey tracks key hotel performance figures in 28 cities across Europe.