Posted tagged ‘Seville’

European Cities Marketing and MKG confirm the good health of the hotel industry

December 2, 2015

European Cities Marketing and MKG confirm the good health of the hotel industry in Europe since the beginning of 2015

The results from the latest ECM-MKG European Destinations Observatory report* are in.
With an occupancy rate of 71% throughout the European Union at the end of three quarters in 2015, hotel chains gained 2 points over 2014 at the same period. Performances on the continent show an increase over last year thanks to growth in the ADR** (+3.5%) and a RevPAR*** up by 6.4%. Some destinations produced better results, depending on their geographic location. Once again the assortment of events held in some cities played a key role in the success of their performances.

Southern Europe cities are performing well. Italian cities’ results are driven by events.
The hospitality industry of San Sebastian, Seville, Zaragoza and Bilbao, all in the top 10 of RevPAR growth, is having a good year. Madrid and Malaga are following this trend too, with double-digit RevPAR growth by 11.8% and 12.1% respectively.
Meanwhile, with “EXPO Milano” (from May 1 till October 31), the city of Milan expects to welcome over 20 million visitors. For the moment, the city has experienced the strongest growth in RevPAR in Europe. Other cities in Italy record good results too with Venice and Turin; the city of romance saw its ADR rise by over 19% (helped by the “Biennale di Venezia“) leading to a RevPAR up by 17.3%, while the RevPAR in the capital of the Piedmont region increased by 12.3%. Bologna records similar results as Turin, but Rome is the only Italian city in this sample to be on a downtrend (RevPAR: -7.5%).

Following the trend of the first semester most Western Europe cities have good RevPAR results. UK main cities shine by their occupancy rates.
The United Kingdom cities continue to keep the lead in terms of occupancy rate with 84.4% for London, the main business destination in Europe, while Edinburgh is still in second position. But, from the beginning of the year, the RevPAR for these two cities followed a negative trend due to respective decreases in ADR by 4.5% and 4.6%.
In Germany, only Dusseldorf and Nuremberg recorded a downtrend in RevPAR. With solid business tourism, Stuttgart (Intergeo 2015), Cologne (IAW 2015) and Berlin (CMS 2015) saw their RevPAR increase.
In France, only Paris is on a slight downtrend, with a RevPAR down by 0.9%. Other cities in the country record good performances, Lille organised “EuroBasket 2015“, Cannes and Nice welcomed events and congresses, Bordeaux and Lyon had a good summer after business events in the first half of the year.
Benelux stayed on the right track from the beginning of the year, with a significant number of political events and meetings to explain its good performance. Brussels and Amsterdam respectively recorded a 6.4% and 7.3% increase in their RevPAR, while Luxembourg has the strongest RevPAR growth in this area (+14.8%).

Scandinavian and Eastern Europe cities also stay on a positive trend.
In Scandinavia, all cities are on a positive trend except Copenhagen and Helsinki showing a relative stabilisation in their RevPAR. Oslo and Stockholm record a combined increase in occupancy rate and ADR.
In Eastern Europe, international events improved results; Warsaw with “International Building & Interiors Exhibition 2015” produced growth in its RevPAR by 9.5%, since the beginning of the year. But, Budapest records the best RevPAR increase in this area (+12.5%) while Prague’s results remained stable (+0.6%).

All ECM members have exclusive access to the complete ECM-MKG European Destinations Observatory report with all the graphs and analysis.

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, press@europeancitiesmarketing.com, +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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