The European hotel industry reported expectedly poor year-to-date results for March 2009, according to data compiled by STR Global. 'European RevPAR fell 14 percent year-on-year, split between declines in both average daily rate (ADR) and occupancy', said James Chappell, managing director of STR Global. Northern Europe fared better than Southern or Eastern Europe with only a 14.3-percent decrease in RevPAR, driven by falling rates. Dublin's RevPAR dropped 27.2 percent due to a fall in occupancy of 12.4 percent and ADR, which declined by 17 percent.
Year-to-date March 2009 vs YTD March 2008 (Euros)
'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 may well be true towards the end of the year, and comparative results may start to stabilise from September onwards', pointed out Chappell.
Dublin's weekly occupancy and average room rate for seven weeks ending 11 April 2009
Source: STR Global
As expected the fall in occupancy in the early part of the year has been followed more recently by a decline in rate as hoteliers attempt to stimulate demand. Rates in Dublin fell consistently in the six weeks leading up to 11 April 2009. Occupancy held up more steadily and the average occupancy of 57 percent over the same period is an improvement on earlier in the year.
Dublin's weekly RevPAR percent change for seven weeks ending 11 April 2009
Source: STR Global
The latest monthly Hotel Market Forecast report from STR Global which predicts market conditions based on the most recent available economic and hotel performance data together with advanced modeling of over 300 economic indicators, expects that Dublin's RevPAR decline for 2009 to be in the -5 percent to -8 percent range, with falling occupancy continuing to be the main culprit.
Northern Europe is defined as Denmark, Estonia, Finland, Iceland, Ireland, Latvia, Lithuania, Norway, Sweden and United Kingdom.
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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