STR Global posts February 2009 results for Europe

Figures for occupancy, average daily rate and revenue per available room ranged from double-digit losses to single-digit gains, depending on the market and the currency used for comparison.

'European RevPAR fell 19 percent year on year, split evenly between average rate and occupancy. Eastern Europe fell the hardest, posting a 35-percent decline with markets suffering a combination of slow demand and over supply', said James Chappell, managing director of STR Global. 'The general economic condition is so poor that it has precipitated a regime change in the Czech Republic, something that will be of great concern to other governments in the region. Western Europe suffered the least with a 12-percent RevPAR decline and the predominately domestic led Scandinavian market is holding up well'.

Year-over-year February 2009 figures for Europe (U.S. dollars, euros and British pounds):

Source: STR Global

'Trade shows are also playing a part, with events helping both Cologne and Malmo/Lund increase their monthly RevPAR by 18 percent and 0.8 percent, respectively', Chappell continued. 'What shouldn't be forgotten is that the first eight months of 2008 were very strong, so year on year comparisons are by definition exaggerated. The reverse will be true towards the end of the year, and results will start to stabilise from September onwards'.

Key year-over-year market performers include (all currency figures are in euros):

- Cologne, Austria, was the only key market to increase in all three key metrics: occupancy (+1.3 percent to 66.4 percent), ADR (+16.8 percent to EUR103.05), and RevPAR (+18.3 percent to EUR68.42).

- Along with Cologne, two other key markets reported increases in occupancy: Malmo/Lund, Sweden (+3.0 percent to 62.9 percent) and Glasgow, Scotland (+0.8 percent to 67.5 percent).

- Three key markets decreased in occupancy by more than 20 percent: Prague, Czech Republic (-33.0 percent to 35.6 percent), Budapest, Hungary (-28.9 percent to 35.1 percent), and Lisbon, Portugal (-21.4 percent to 41.5 percent).

- Key markets reporting increases in ADR include: Cologne (+16.8 percent to EUR103.05), Geneva, Switzerland (+9.0 percent to EUR211.06), and Vienna, Austria (+6.3 percent to EUR105.05).

- Düsseldorf, Germany, and Moscow, Russia, reported the largest declines in ADR, which were down 26.3 percent to EUR87.41 and down 25.8 percent to EUR186.91, respectively.

- Six key markets reported RevPAR decreases of less than 10 percent: Berlin, Germany (-9.8 percent to EUR51.13), Frankfurt, Germany (-9.6 percent to EUR75.37), Vienna (-8.6 percent to EUR49.54), Munich, Germany (-8.2 percent to EUR56.74), Geneva (-6.1 percent to EUR120.43), and Hamburg, Germany (-2.4 percent to EUR60.50).

Performances of key countries in February (all monetary units in local currency):

*percentages are increases/decreases for February 2009 vs. February 2008

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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