Although there has been a slight increase in hotel performance in Europe compared to January, activity remains at less than a quarter of its usual level. The situations and dynamics are still heterogeneous between countries.
After the continued deterioration in performance in January 2021 (-80.5% RevPAR compared to last year), the month of February shows a very slight increase despite a still very low RevPAR of €12.8 excluding VAT (-77.9% RevPAR compared to 2020). The slight recovery compared to last year's level is explained by a slight increase in the average price (-27.4% in February compared to -28.9% in January) despite a slight drop in the occupancy rate (-43.9 points in February compared to -43.0 points in January).
Among the ranges, the results are more or less similar to those observed since the beginning of the crisis: the top-of-the-range and luxury segments, followed by the mid-range, are still suffering more than the others. Their respective occupancy rates were only 10.8% (-52.4 pts) and 17.4% (-45.8 pts), with an average price down by 23.6% (€108.7 excl. tax) and 17.8% (€73.1 excl. tax). This leads to a loss of 86.9% of RevPAR (€11.8 excluding VAT) for upmarket and luxury establishments, and a loss of 77.4% of RevPAR (€12.8 excluding VAT) for mid-range establishments.
The economy and budget segments, which are usually more resilient, are not left behind. Their occupancy rates fell to levels of only 22.8% (-41.1 pts) and 31.8% (-29.3 pts), with an average price falling by 15.6% (€59.0 excluding VAT) and 12.4% (€43.6 excluding VAT) respectively. RevPAR in the economy segment fell by 69.9% (€13.5 excluding VAT) and in the budget segment by 54.4% (€13.9 excluding VAT).
Among the European countries, France still stands out as one of the countries where the hotel industry is holding up a little better, due to its hotel stock being more oriented towards the economic ranges, and because the activity of certain mid-mountain, rural or coastal areas has nevertheless benefited from a modest holiday effect. However, even if the fall is less significant than in the other countries of the continent, its results are still very weak with an occupancy rate of 27.5% (-32.0 pts), an average price falling by 25.5% (€65.6 excluding VAT) and a RevPAR that has fallen by 65.6% (against 70% in January).
Poland and Italy also stand out, as these two countries made significant progress in February compared to January and December: their RevPAR falls were respectively -77.0% and -75.3% in February, compared to -90.5% and -84.6% in January. From a hotel point of view, the situation is therefore improving in these two countries.
Conversely, Austria is one of the countries with the largest drop in February 2021: the ski season, which usually generates a lot of activity but is very dependent on international clients and mobility, has, as in all the Alps, been almost a "blank season" for the hotel industry, while the event industry, particularly business events, is still at a standstill in Vienna, as in the other major European cities.
Like Austria, Portugal also saw its activity fall sharply in February: these two countries thus join the bottom of the pack formed by the Czech Republic and Hungary, which since the beginning of the pandemic have been the hotel markets most affected by the crisis, which can be explained in particular by the smaller size of their domestic market.
In most other European countries, particularly in Germany (-86.9%), the Benelux countries (-84.6% in Belgium, -77.1% in Luxembourg, -89.8% in the Netherlands) and Spain (-83.7%), hotel activity remains at a very low level, i.e. less than one-fifth of the norm of previous years, despite the fact that February is traditionally a month of rather low activity.
The same is true in the United Kingdom (-82.5%), which does not particularly benefit from its lead in terms of vaccination, as restrictions are still strong there, and the hotel market is significantly exposed to international and long-haul customers.
For the time being, therefore, recovery is slow to appear on the horizon, but European health policies are moving towards an acceleration of vaccination, which may give hope of a real recovery in the next few months.
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