Hotel Online  Special Report



Finally a Month of Strong Rises in the German Hotel Industry

  • German’s RevPAR posted in May rises by 19,4% which is the highest increase in 3 years !
  • The occupancy rate gained 7 points and the average daily rate rose by 6.3%.
  • Driving the growth, the 3* and 4* categories finally posted clearly better results.
  • On 12 rolling months, the RevPAR only lost 3.2% (versus -8.2% at the end of April!).

Germany-May 2003 / chain hotel results 

Occ. rate
Chg. 2003/2002
Chg. 2003/2002
Chg. 2003/2002
Source : MKG Consulting Database – June 2003
Official statistics from corporate operated hotel chains
ARR and RevPAR are in EUROS including VAT

In 3*, the occupancy rate rose by 8 points in May for a 6,3% rise in ADR !

While in April, the German hotel industry posted results that were the lowest in Europe (-27.4% in RevPAR), in May, they came in at first place (+19.4% in the RevPAR). Taking a hard blow from the war in Iraq, the SARS epidemic that deprived hoteliers from their Asian clientele, and moreover the economic slowdown, the German hotel industry climbed back up as quickly as it fell in April. Globally, the number of hotel visitors bounded by 7 points and the average daily rates by 6.3%. All categories recorded good results in May. Nevertheless, the 3* hotel industry recorded the greatest increases. In effect, this category gained 8 occupancy rate points for a rise of 6.3% the average daily rates induced a RevPAR that improved by 22%! The 4* category was not excluded from this improvement and recorded combined highs in the average daily rates and the occupancy rate (7% and 6.5 points respectively) for a global increase in the RevPAR by 19.4% versus last year.

Average daily rates currently near equilibrium on 12 rolling months

With such monthly results, the middle term trend is recovering, and on 12 rolling months, the RevPAR only lost 3.2% (versus -8.2% at the end of April!). The cumulated average daily rates are now close to equilibrium (-0.8%) and the occupancy rates lost 1.4 points. Despite this strong and positive signal recorded in May, it still seems premature to count on a massive and durable turnaround in the trend. Though the numerous events, conferences, and expositions anticipated for the fall season are all reasons for German hoteliers to be optimistic, the official announcement that the SARS epidemic is under control is an encouraging sign for the German hotel industry. Notably for Frankfurt, which is the principal gateway to European region for Asian clientele. Be that as it may, the recovery in the German hotel industry must also necessarily be a result of the recovery of the national economy. German hoteliers are in effect strongly dependent both on the business segment as well as domestic clientele. The real test for the German hotel industry therefore remains the new term and the months of September, October and November, which contribute highly to the year's trend. It is during this period that will in effect determine the year 2003 for the German hotel industry 

For additional information please contact George Panayotis at: 00 33 (0)1 56 56 87 90

Methodology: MKG Consulting’s database features 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.


Georges Panayotis
+33 (0)1 56 56 87 90
Also See: Hotel Industry in Europe: Record Drop in the RevPAR in April 2003, But Slight Decrease of the Mid-term Trend / MKG Consulting / May 2003
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

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