16 October, etc.venues Monument
30 October, JW Marriott Grosvenor House
1st November 2023, etc.venues County Hall
2009 to be worse than 2008
The Dutch hotel market has been hit hard by the recession, new figures from consultants Horwath show.
Its HOSTA report on hotel statistics for 2008 revealed drops in both average room rates and occupancy levels.
The Hilversum-based analysts warned that figures for this year are likely to be worse than for 2008.
But it predicted a "partial recovery" in 2010.
Horwath, which has been publishing reports on Dutch hotels since 1978, quizzed 288 three-, four- and five-star properties for its research.
This found that nationally, occupancy dropped from 72.5% in 2007 to 68.1% last year.
The fall marked the end of a period of recovery for Dutch hotels and was the biggest yearly drop in occupancy since 2003.
The decline brought occupancy levels to those of 2005.
In the same 12 months, average room rates fell by 4.5% nationally from €110 to €105. 2007 was the first year rates had fallen since 2004.
Horwath said revPAR (revenue per available room) also fell in 2008 by 10% from €80 to €72.
The reports said that room rates in Amsterdam, which is "especially dependent" on the corporate market, were in strong decline.
Occupancy in the city fell from 81.4% in2007 to 74.9% last year while rate dropped from €236 to €140.
As a result revPAR fell by more than 17.5% from €114 to €94 - the biggest drop since 1993.
The consultants said that five-star hotels had been hardest hit by the recession with occupancy levels starting to fall in2007.
It fell from 74.8% in 2007 to 68% in 2008 but average room rates increased slightly during the 12 months from €178 to €180.
Horwath added: "The cause for the strong decline in the five star market can be found in the economic crisis.
"Since the start of the credit crunch and the government bail-outs that were given to businesses such as banks in both the US and The Netherlands, company spending is watched closely.
"The news items on festive retreats organised by companies such as Fortis and AIG have contributed to this.
"Luxury hotels now have an image problem. Many companies will no longer allow their employees to stay in five star hotels.
"As a result, Sheraton Amsterdam Airport and NH Amsterdam Centre have already decided to drop their fifth star and to continue as four star hotels." Horwath said that 79% of its respondents said they expected the economic recovery to start in 2010 although 25% said they did not expect an improvement until 2011.
But the consultants warned that recovery often took longer than decline and said a decrease in room rates "can take years to recover from".
They said they expected the2009 figures to show a further drop in occupancy to 62.2%, a fall in average room rates of 3.8% to €101 and a drop revPAR of 12.5% to 63.
It added: "For 2010, hopes are for a partial recovery of the occupancy to 65.7%, but a further decrease in average room rates to €99 is expected. The revPAR could then increase to €65."