European hotel performance data showed a sharp slowdown in the sector during October, according to preliminary data from STR Global. STR Global collects daily data from about 3,500 hotels in Europe.
'Looking at occupancy, average room rates and revenue per available room data for selected 17 European capitals, we see occupancy declining across the board', commented James Chappell, Managing Director of STR Global. 'Unfortunately, average room rates and RevPAR have started to fall for a majority of capitals this month. The decline of rates comes earlier and faster than expected'.
Preliminary October 2008 performance
(October 1-30 compared with same time frame during 2007)
Source: STR Global
In Euro-terms only Berlin and Helsinki grew their RevPAR for the month compared to October 2007. In local currency terms the two cities are joined by Oslo and Stockholm which improved their RevPAR 5 percent and 0.5 percent, respectively. All RevPAR improvements came from average rate growth. In the case of Brussels, Lisbon, London, Moscow and Warsaw increases in ADR were offset by declining occupancies which drove RevPAR down.
The declines in performances are a result of the worldwide financial crisis, economic slowdown and falling consumer confidence that have started to impact demand for hotel accommodation, according to Chappell.
About STR & STR Global
For more than 20 years, Smith Travel Research has been the recognized leader for lodging industry benchmarking and research. Smith Travel Research and STR Global offer monthly, weekly, and daily STAR benchmarking reports to more than 36,000 hotel clients, representing nearly 5 million rooms worldwide. STR is headquartered in Hendersonville, Tenn., and STR Global is based in London. For more information, visit www.smithtravelresearch.com or www.strglobal.com.
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