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The european hotel industry is among the rising stars

If the trend continues, Europe’s hotel industry could beat the last record for growth, which occurred in the year 2000. In October, the revenue per available room grew by 9.6%. This growth was sustained by both an overall increase in average daily rates and a particularly high occupancy rate in hotel establishments.

Avast majority of European countries reported a record October. The logical result was an average room revenue almost reaching 10% growth (+ 9.6%). October is traditionally a very active period with a high business volume, and this year’s October was no exception. European establishments posted a high occupancy rate at 74.8%, for a 1.7 point increase over the previous year. Faced with such success, hoteliers easily boosted their average daily rates (+7.1%). Economy ho-tels, with nearly 80% occupancy rates (+2.9 pts), obtained an excellent result (+11.1%), but even more successful was the midscale segment which reports a truly outstanding increase (+12.4%). The other categories were no exception, with growth between 6.7% and 9.0%. The month of October served to accelerate the overall growth trend. Over the twelve previous months, the European revenue per available room grew by 7.1%. The year 2000 closed with 9.7 % growth, and in the current climate this record is wholly realistic for 2007 as well.Double digit growth in room revenue was the norm in October. Starting with Germany, the hotel industry boasts excellent performance with a 15.7% growth in RevPAR. The growth in average daily rates reflected the effect of the increase in occupancy. Neighboring Austria also reports 11.9% growth. The United Kingdom succeeded in achieving even better results than last year (+10.0%). The occupancy rate was already well over 80% in 2006 and continues to grow, boosting the average daily rate along with it (+8.1%). Italy also had an excellent month with an average rate close to 150 euros and a revPAR up by 11.2%. With a satisfactory growth rate of 6.9%, Spain nonetheless remains below average. In Eastern Europe, Poland continues to catch up to the European average month after month (+11.9%) with an occupancy rate that is now higher than 67.5%. the Czech Republic continues to benefit from heightened appeal and succeeded, although it may be an exception to usual performance, in significantly increasing average daily rates (+18.1%). The country reports the most impressive growth in revPAR over the last month (+22.0%). Inversely, Hungary’s results were slightly disappointing, as the country showed only a slight increase to last year’s figures (+0.8%).Double digit growth in room revenue was the norm in October. Starting with Germany, the hotel industry boasts excellent performance with a 15.7% growth in RevPAR. The growth in average daily rates reflected the effect of the increase in occupancy. Neighboring Austria also reports 11.9% growth. The United Kingdom succeeded in achieving even better results than last year (+10.0%). The occupancy rate was already well over 80% in 2006 and continues to grow, boosting the average daily rate along with it (+8.1%). Italy also had an excellent month with an average rate close to 150 euros and a revPAR up by 11.2%. With a satisfactory growth rate of 6.9%, Spain nonetheless remains below average. In Eastern Europe, Poland continues to catch up to the European average month after month (+11.9%) with an occupancy rate that is now higher than 67.5%. the Czech Republic continues to benefit from heightened appeal and succeeded, although it may be an exception to usual performance, in significantly increasing average daily rates (+18.1%). The country reports the most impressive growth in revPAR over the last month (+22.0%). Inversely, Hungary’s results were slightly disappointing, as the country showed only a slight increase to last year’s figures (+0.8%).

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