Europe’s morale is at half mast. In August, its revenue per available room went into the red with a 2.8% drop. The occupancy rate of properties posts a clear 3.8-point drop, a phenomenon that is particularly evident in the upper categories. Growth of average daily rates proved to be too weak to counteract the drop in OR (+2.5%). The growth margin for rates is restrained by a poor economy.
It is necessary to look all the way back to August 2005 (-5.1%) to find drop in the European RevPAR by more than 2.8%. And yet, this “record” must be put into perspective because it also reflects a significant drop in Greece, which hosted the Olympics in 2004. Of course, results for Europe’s hotel...
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