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Occupancy for First Seven Months of 2003 |
October 2003 - Warsaw reported the largest decline in revenue per available
room (revPAR) of any European market tracked by the HotelBenchmark Survey
by Deloitte during 2002. The city finished the year with occupancy
at 50 percent (11 percent decline on 2001) and an average room rate of
EUR122 (17.9 percent decline on 2001). Consequently, Warsaw was the
only market in Europe to post double-digit declines in both occupancy and
average room rate compared to 2001.
Year-to-August 2003 figures unfortunately show little respite for the
city. Of the 37 markets tracked across Europe on the HotelBenchmark
Survey, Warsaw is currently posting the second largest declines in revPAR.
During the first eight months of the year the city has seen revPAR fall
by 24 percent to EUR50 compared to the same period in 2002.
However, given the strengthening of Warsaw's position as the commercial hub of Poland and the level of investment in the city's infrastructure over recent years, including the opening of the city's largest conference centre in May 2002, it is perhaps not surprising that Warsaw continues to attract hotel investment. International hotel operators that have recently opened in the market include, the 250-room Hyatt Regency and the 309-room Radisson SAS - both of which opened in 2002 - and the 366-room Westin which opened earlier this year. Future openings include the 226-room Courtyard by Marriott scheduled to open this month and the 329-room InterContinental Warsaw scheduled to open in November. So what of the future? Although international tourist arrivals to Poland have declined for the last five years, the Institute of Tourism expect that some markets will start to show some level of improvement in 2003 and 2004. However, it is not until 2007, that tourist arrivals are expected to return to the levels achieved in 2001. Economic data however is slightly more encouraging. Latest figures from the Economist Intelligence Unit (EIU) forecast that Poland's GDP will increase by 3.1 percent 2003, compared to the 1.4 percent growth achieved in 2002. To set this in context of the EU, which Poland plans to join next year - EU GDP is forecast to increase by just 0.7 percent in 2003 and 1.9 percent in 2004. Despite improvements in the economic environment, increased investment in Warsaw's infrastructure and efforts by the city to increase its profile, as an international conference and exhibition destination the reality however is that in the short-term, supply is likely to continue to outstrip demand. Note: all analysis in Euros. The HotelBenchmark Survey contains the largest independent source of hotel performance data outside of North America and tracks the performance of over 6,000 hotels and 1.1 million rooms every month. Four regional monthly rate and occupancy reports are produced covering Asia Pacific, Caribbean and Latin America, Europe and the Middle East & Africa. These are supplemented by country reports for Australia, Belgium & The Netherlands, Germany, Italy, New Zealand, South Africa, the UK and a city survey for London. Annual profitability surveys are run across all regions of the world, whilst in Germany and London monthly profitability surveys are conducted. |
Contact:
HotelBenchmark Survey Mikael Sundaeus [email protected] +44 20 7007 1445. |
Also See: | The 12 Euro-zone Countries Improve Average Room Rates During 2002 / Deloitte & Touche / Feb 2003 |
Half-year Results for the Middle East and Africa Hotel Markets Indicate Occupancy Levels Dropping by 8%, to just 54% / HotelBenchmark / Aug 2003 | |
International Occupancy and Rate Report / April 2003 Summary Report / Deloitte & Touche / July 2003 | |
International Occupancy and Rate Report / March 2003 / Deloitte & Touche / May 2003 | |
South African Hotel Performance Continues to Improve / Deloitte & Touche / May 2003 | |
Germany: Hotel Profits Tumble as Economic Conditions Worsen / Mar 2003 | |
Performance of Key New Zealand Hotel Markets for January 2001 / March 2001 |