10 November 2021, Virtual
London, UK - November 2021
London, UK - December 2021
European revenues and occupancies suffer
Profits have fallen by more than 80% in some European chain hotel markets over February, the latest HotStats survey by TRI Hospitality Conzsulting has revealed.
Average profit, expressed as income before fixed charges (IBFC), fell the furthest in Vienna, by 81.6% compared to the same month last year.
Paris and Prague suffered 69.1% and 60.0% declines respectively. London fared relatively well, with profits down 15.3%.
"On first sight such a fall looks alarming, but we must remember that the start of the year is the least important time for hoteliers in terms of generating profit. This is particularly true in the case of Vienna," said David Bailey, deputy managing director of TRI.
The decision to hold Paris' Fashion Week in March this year, not February as in 2008, caused the city's poor profit result, TRI said.
European hotel occupancy was more encouraging, showing decreases of just 2.4% and 2% in London and Warsaw, and an increase of 2.3% in Hamburg.
London's occupancy remained the highest at 77.4%, followed by Hamburg and Brussels at 68.1% and 63.4% respectively.
"Given current market conditions, it is encouraging to see that London's occupancy levels are up in the high seventies, showing that general demand for branded hotels remains strong in the English capital," said Mr Bailey.
Average occupancy in Amsterdam fell 13% to 57.1%. TRI said the fall in demand had mirrored data from Amsterdam Schiphol Airport, which handled 13.7% fewer passengers in February year-on-year.