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August, a reflection of an excellent year

The summer period was profitable for Europe’s hotels. July ended with growth in the room revenue by 5.9%. August did even better with 7.8% growth in the RevPAR. These good results just might augur an excellent fall.

The results of the month of August are perfectly in keeping with the trend observed over the last twelve months. In fact, the monthly results are quite similar to the trend and remain decidedly favorable to European hoteliers. Last August, the revenue per available room progressed by 7.8% while the trend over twelve cumulated months is 7.5%. The same observation may be made for upscale hotels, which post the same results for August as over the last twelve months (+8.0%). This category re-mains the best performing among Europe’s hotels. Last August, thanks to a strong increase in average daily rates (+6.8%) that in no way hurt its occupancy (+0.8 points), the 4-star hotel industry once again drew results up. With 7.7% growth, the mid-scale segment follows close behind with occupancy rates higher than the 4* (72.8 % versus 69.9%). The economy hotel segment is also in fine shape (+7.8%). The 2* category posts strong growth in its occupancy rate (+2.7 points) as well as in its average daily rates (+ 4.0%). With very high occupancy rates but a less significant maneuvering margin, the budget segment confirms its regular growth.Most European countries post a very good August. Germany is close to doubledigit growth (+9.9%). All segments are following the same tune but the economy hotel segment deserves a pat on the back for its performance that was higher than 11.1%. In the midst of institutional doldrums, Belgium can nonetheless find sources of consolation among its hotel results (+8.1%). Its Dutch neighbor, on the other hand, saw its strong uptrend over the past several months lag behind, to post only slight growth in its RevPAR (+1.8%). This moderate increase may be explained by a slight drop in occupancy (- 0.6 points) which nonetheless remains respectable, with nearly 75% of the OR. Spain also posts a drop in the OR, however it is largely offset by a strong increase in average daily rates. The result: the RevPAR is up by 7.4%. Another country that benefited from this summer, Italy may rejoice over a result that is sensibly equivalent to the one reported in Spain. In the East, Hungary and the Czech Republic post very high occupancy levels, close to 85%. These countries different destinations are in full development and stiff competition with one another and the RevPARs post drops this August.Most European countries post a very good August. Germany is close to doubledigit growth (+9.9%). All segments are following the same tune but the economy hotel segment deserves a pat on the back for its performance that was higher than 11.1%. In the midst of institutional doldrums, Belgium can nonetheless find sources of consolation among its hotel results (+8.1%). Its Dutch neighbor, on the other hand, saw its strong uptrend over the past several months lag behind, to post only slight growth in its RevPAR (+1.8%). This moderate increase may be explained by a slight drop in occupancy (- 0.6 points) which nonetheless remains respectable, with nearly 75% of the OR. Spain also posts a drop in the OR, however it is largely offset by a strong increase in average daily rates. The result: the RevPAR is up by 7.4%. Another country that benefited from this summer, Italy may rejoice over a result that is sensibly equivalent to the one reported in Spain. In the East, Hungary and the Czech Republic post very high occupancy levels, close to 85%. These countries different destinations are in full development and stiff competition with one another and the RevPARs post drops this August.

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