Trends

London Tops European Hotel Revenue Survey

London has been ranked top European market in revenue per available room (RevPAR) for 2006, according to data presented by professional services firm KPMG and global benchmarking provider The Bench.

The Bench Nick Pattie, Director at KPMG’s travel, leisure and tourism practice commented: "The continuing growth in 2006 RevPAR across all markets is impressive and has exceeded previous peak performances for some destinations. There is still headroom for further growth in many regions, especially Asia, although the slowing level of US growth may be an indicator of nearing the top of the cycle within the next couple of years. We see 2007 as maintaining a strong performance in Europe."

Top 15 Europe & Middle East Markets – Absolute RevPAR (EUR)

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Besides London, all of the other 14 destinations in the top 15 Occupancy chart are above 70%, and only five of them are not in the UK (Dubai, Amsterdam, Rome, Dublin and Hamburg). Amsterdam was second in absolute Occupancy with an average of 80.2%, which, combined with an ARR of EUR129.96, brought the city to the fifth highest RevPAR of the year at EUR104.27. Rome was 13th in Occupancy with a 74.7% but didn’t make it to the top 15 in ARR, which kept it in 14th place in the RevPAR ranking at EUR80.77. Dublin was a similar case, with a slight decrease in ARR (EUR122.45) and Occupancy (77.7%), which brought a decrease of one place in the RevPAR ranking. Hamburg still shows in the lower places of the chart, however the city showed one of the highest increase from 2005, ending the year at ARR EUR105.84, Occupancy 75.8%, and RevPAR EUR80.33 (an increase of 18.4% from the previous year).

In the UK, Edinburgh is, as usual, the strongest UK destination after London, with RevPAR of EUR101.32, ARR of EUR129.04, and Occupancy of 78.5%, Edinburgh ranks in sixth place in RevPAR among the top 15 destinations. Bath ended the year at EUR96.13, driven by an ARR of EUR124.54 and Occupancy of 77.2%, an increase of three places from last year.

Top 15 UK Markets – Absolute RevPAR (EUR)


Looking now at the highest RevPAR growth of last year, Riga grew an impressive 35% albeit from a very low base. Despite the celebration of the World Cup, overall Occupancy in Germany grew very little and only Berlin and Hamburg made it to the RevPAR top list. Berlin ended the year with an ARR of EUR125.50 and Occupancy of 73.5%, which produced a RevPAR of EUR93.53, a remarkable increase of 28.5% over the same period last year. Hamburg also saw increases in its Occupancy (up to 75.9%), ARR (up to EUR105.84), and RevPAR (up to EUR80.33).

Highest RevPAR Growth EUR


James Chappell, Managing Director of The Bench, said “As seen in 2006, the US had a very respectable growth of 7.5% and Europe grew by 11.61%, but the outright winner and something we are going to have to get used to is Asia, which grew by a whopping 20.12%. Focusing on the UK markets, there was an impressive growth of 12% year-on-year, a combination of great market conditions and great revenue management. My advice for 2007 is more of the same, let’s all make hay while sun shines.”


KPMG
KPMG LLP, a UK limited liability partnership operates from 22 offices across the UK with over 10,000 partners and staff. The UK firm recorded a turnover of £1.45 billion in the year ended September 2006. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. We operate in 148 countries and have more than 113,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International, a Swiss cooperative. KPMG International provides no client services.

THE BENCH
The Bench, global partner with Smith Travel Research (STR), is a market leader in providing online daily benchmarking data to more than 2500 hotels in 100 markets worldwide. As the sole provider of an online benchmarking solution offering real time data, The Bench brings accurate hotel performance statistics to the market at an unparalleled speed. With the flexibility and ease of creating an unlimited number of competitive sets, configure reports at will in a multiple of formats and access all information on a 24 hour basis, The Bench users are able to maximize their RevPAR penetration and returns by measuring their daily performance against their competitors.



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