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STR Global predicts dip in rates
A fall in average daily rates in German hotels is predicted over the next 24 months by STR Global.
The hotel consultants said the drop will be the "main cause of the industry's sluggish performance" in the country.
It said in its May 2009 Hotel Forecast report that limited improvements in occupancy will be "offset by the rate declines."
In cities like Hamburg and Munich where STR predicts increases in occupancy of 2-3%, room rates are forecast to drop by 6-7%.
The cities expected to be worst hit by rate falls are Dusseldorf, cologne and Hamburg.
STR predicts rates in the first could drop by between 19-22% this year followed by a further fall of 1-3% in 2010.
Cologne which is likely to see rates drop by 2-4% this year could see them slump by 6-11% next year.
Hamburg is expected to see its rates fall by 4-6% this year and by 5-7% in 2010.
STR forecast that rates in four other cities surveyed would also fall in 2010: Berlin (3-5%), Frankfurt (2-4%), Munich (4-6%) and Stuttgart (2-4%).
The picture for occupancy was better with STR predicting that Dusseldorf (-2-+1%), Hamburg (-1-+1%), Frankfurt (0-2%), Munich (1-3%) and Stuttgart (1- +1%) all seeing level rise in 2010.
It said only Berlin (2-4%) and Cologne (2-4%) would see occupancy fall.
James Chappell, STR's managing director, said the hotel industry was going through "turbulent times and it was "vital to look regularly at how the local economic conditions are affecting our industry" and give "regular visibility on what was likely to happen."