Hotel Industry Benchmark Survey
There was a marked difference in the performance of the market pre and post-September 11. Prior to the events of September 11, revenue per available room (revPAR) across all European hotels was up 1.8%. A decline of 13.9% in the last four months of the year resulted in revPAR ending the year at €74 ($64), 3.9% down on 2000 levels.
Julia Felton, director of Hospitality Knowledge Services at Andersen said:'despite the tough trading conditions during the year, the industry has largely managed to weather the storm. Against the backdrop of a slowing global economy, as 2001 progressed the odds stacked up against hoteliers, with the outbreak of Foot and Mouth Disease and the atrocities of 11 September significantly impacting demand. Despite declining occupancy, however, European hoteliers in most cities have risen to the challenge and managed to record increases in average room rates'.
There was a significant variance in the performance of the 40 European markets Andersen tracks, with 16 cities reporting revPAR increases and 24 cities reporting revPAR declines. The only markets to witness double-digit growth in revPAR during 2001 were Moscow, Cardiff and Cyprus and these were also the only markets to report an improvement in occupancy over 2000 levels.
London was perhaps the hardest hit of all the European markets during 2001 due to its significant reliance on international tourists, especially those from the US. Occupancy fell to 74%, a decline of 9.6% over 2000. Diminished demand forced the market to enter into price discounting, resulting in a 5.8% fall in average room rates when measured in euros.
In 2001 Geneva beat Paris to the title of most expensive destination in western Europe, with the city recording a market-wide average rate of €190 ($166). Hotels in Paris came in second at €183 ($159), followed by Rome at €174 ($152). London, which is often one of Europe's most expensive cities, fell to fourth place as a result of the fall in average room rates. Only two western European gateway cities – Berlin and Lisbon – failed to achieve an average room rate over €100 ($87).
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