Posted tagged ‘Munich’

On the road to success

March 14, 2012

On the road to success
Sales and operating results for 2011 up, VAT reduction allows numerous investments, expansion abroad continues.

Bad Salzuflen, Germany, March 2012 – Although the economy has not yet reached its pre-crisis levels, Maritim Hotels once again showed improved results last year. At 446.1 million euros, total turnover for 2011 0.8 million euros was about 0.2 per cent up on last year’s result. Clear growth was recorded, especially in the business and individual travel segment. Since the beginning of 2010, the reduction in VAT on accommodation to seven per cent has also contributed to good business results; this reduction remains of vital importance to the German hotel sector, especially when it comes to maintaining its competitiveness with foreign companies. Maritim currently has 51 hotels, of which 14 are located abroad; the average occupancy rate is 58.0 per cent. The average room rate increased from 86.80 euros the previous year to 88.09 euros.

Looking back on 2011
The German economy continued to recover, allowing Maritim to continue its growth in the important business and individual travel segment. This positive business trend was enhanced by the reduction in VAT, allowing us to make some major investments in our hotels, not only securing existing jobs but also creating new jobs and making an important economic contribution to various regions. “The good annual results prove that our increased sales and marketing strategy in recent years has been the perfect recipe. In addition, the VAT reduction has allowed us to invest for the benefit of our guests,” said a pleased Gerd Prochaska, Executive Director of Maritim Hotels.

Numerous investments
Investment in Maritim Hotels was just short of 10 million euros in 2011 – with investments being made in Munich, Cologne, Bremen, Frankfurt and Travemuende, for example. At the Maritim Strandhotel Travemünde, an entirely new spa and beauty care centre was created in an area measuring 1,100 square metres, which can now be termed one of the most attractive spas on the Baltic coast. In the other hotels, bathrooms, rooms and parts of the conference areas have been repainted, thus enhancing their elegance and comfort.

Expansion in China
The first Maritim hotel on Chinese soil having opened in 2010, it was time for a second hotel to be opened in China in June 2011: apart from the Maritim Hotel in Wuhu (located a four-hour drive from Shanghai), there is now another 5-star hotel in Shenyang. The Maritim Hotel Shenyang is located in the megacity of the same name in the booming Yuhong economic zone and is regarded as the cultural and economic centre of north-eastern China. This spacious 5-star hotel has 631 elegantly furnished rooms and suites, each one equipped with LCD television, high-speed Internet access and a minibar. Some rooms have balconies. The numerous seminar and congress facilities may be of interest to business travellers: with a size of 1,450 square metres, the largest hall is suitable for events with up to 1,400 guests. In addition, there are 15 other conference rooms ranging in size from 80 to 430 square metres, all equipped with the latest audio and video technology.

Looking forward to 2012
Based on an increasingly stable economic trend, Maritim can now look forward to 2012 with confidence and expects to achieve a slight increase in turnover.

One of the focal points of corporate strategy will continue to be the company’s expansion abroad, mainly in China, where five further hotels are to be opened in the next few years.

Press enquiries: Britt Winter, Director Public Relations
Maritim Hotelgesellschaft mbH, Herforder Str. 2, 32105 Bad Salzuflen, Germany
Telephone +49-(0)5222-953-280, telefax +49-(0)5222-953-128,

European hospitality results 2011

February 10, 2012

European hospitality results 2011: betwixt satisfaction and a question mark

The year 2011 closes with positive indicators for hotel business throughout the European Union, with an average of 5.6% growth in the RevPAR as a result of increased occupancy combined with growth in average daily rates. And yet, the dynamic that was seen until Spring 2011 slowed in the last quarter.

It is important to observe that for the 27 countries in the European Union plus Switzerland, the results of the hotel business for 2011 are positive. No country closed the year with a downturn for its reference indicator –the RevPAR1– even if there is a broad range between stagnation in Switzerland (+0.4%) and strong improvement in Poland (+9.4%). While on the one hand Switzerland is already positioned among the highest levels of performance, on the other Poland occasionally benefited from its six‐month presidency of the European Union. The European countries with the strongest hotel activity –United Kingdom, France, Germany or the Benelux– are positioned within a tighter range: between 4% and 6% growth, which better reflects the state of Europe’s marketplace.

With an average European occupancy rate higher than 66%, hotel occupancy gained 2 points over 2010, which was already in a strong recovery over the crisis of 2009. The prize goes to the international gateways, capitals and business cities: Amsterdam, Berlin, Ghent, Hamburg, London, Munich, Paris and Zürich, which flirt with or surpass an OR2 of 75% across the year. With an OR close to 85% London beats all records, and is close to saturation. At the bottom of the table, Spanish cities (Saragossa, Seville) and Italian ones (Bologna) reflect the difficulty of the national markets. Even cities with highly seasonal business that depends on exhibitions and fairs (Cannes and Hanover) progressed in 2011. The rare drops in occupancy with respect to 2010 are minimal, largely less than 1 point.

This strong demand justified a significant improvement in the average daily rate (for many cities around 4% and more), an indicator of the shift of the vast majority of European cities into the upper part of the hotel cycle. Only a few German cities (Berlin, Leipzig, Munich, Nuremberg), Italian cities (Florence, Turin) and Spanish ones (Bilbao, Madrid, Saragossa) activated the rate dynamic to boost or relaunch demand.

The question mark bears on the prolongation of the slump observed in year‐end business. The degradation of national economies, the concern about the impact of debt, and austerity measures have an evident effect on the average slump observed in Europe where the OR and ADR3 fell into the red last December. Past experience taught that the midscale and upscale segments reacted more visibly to the change in economic climate. In cities where the weight of these categories is preponderant (Central Europe, Scandinavian countries, Spain and Italy…), the stabilizing effect of the economy hotel segment was impotent.

1 RevPAR: Occupancy rate x average price or room revenue divided by available rooms
2 OR: Occupancy Rate – number of sold rooms divided by number of available rooms
3 ADR: Average Daily Rate – room revenue divided by number of sold rooms

ECM (European Cities Marketing) is the leading European association of city tourism offices and convention bureaux, representing 125 members across 100 major cities in 32 countries. Its aim is to improve the performance and maintain the competitiveness of its members through the exchange of best practice and information.      
For more information and pictures, please contact:
Marie Kuklova,, +33 380 56 59 51
Established over 25 years ago, MKG Group® has built a solid reputation for business expertise and substantial European-based know-how in the tourism, hotel and hospitality sector. MKG provides a unique savoir-faire in market research, consulting, financial feasibility studies, individual property and portfolio asset valuations, as well as quality control campaigns. The foundation of knowledge and resource is HotelCompSet, the largest industry database in Europe, representing all hotel segments.

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