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November: a heartening end to the year

The last strong month for the hotel industry before the break for the first months of the year, November 2007 was no exception to the rule. Occupancy reached very high levels and grew by 1.3 points over last year. Backed by an increase in average daily rates (+4.7%), Europe’s hotel industry results continued to grow and the revenue per available room improved by 6.7%.

The year 2007 should come to a close under the best auspices. A big majority of European countries may rejoice over an excellent November. Growth in the revenue per available room is close to 7% growth on a European level (+6.7%). After an October with a very high business volume, November did not derogate from the rule with occupancy close to 70% (at 69.1%), meaning a 1.3 point increase over last year. This strong activity made it possible for hoteliers to increase their average daily rates (+4.7%). Economy hotels had the best reports for this second to last month of the year with an occupancy rate of 73.5% (+1.2 pt). Its RevPAR grew by 6.9%. But with 9.1%, it is a bold midscale segment that posts the strongest growth by far. The 4* category proved to be more modest with a 5.3% increase. On the previous twelve months, the global room revenue grew by 7.3%. While the record of the year 2000 – 9.7% growth – will probably not be beaten, the performance of Europe’s hotel industry is one of the most solid.Nearly double-digit or better growth in the revenue per available room was quite common last November. Austria (+17.6%), Sweden (+14.7%), Belgium (+14.6%): the trio in the lead may rejoice over strong growth in their average daily rate. They are even ahead of Spanish hotels, which are in top form at this end of the year (+13.2%). Germany succeeded in improving over last year, which was nonetheless an excellent year thanks to the FiFA World Cup, with an increase by 8.0%. The Netherlands and the United Kingdom continue on an uptrend despite a slight drop in occupancy rate, which was fairly significant for the upscale segment in Great Britain. In Eastern Europe the morale is good. Poland continues to catch up with 8.1% growth, even if its RevPAR remains well below that of its neighbors. Starting with the Czech Republic which is improving: although growth of the RevPAR was relatively weak (+0.3%) on twelve cumulated months, the month of November closed with a 6.0% increase after a record month of October (+22.0%). Hungary, meanwhile, adopted a bold rate strategy (-6.1%) to boost occupancy (+11.5 points). The wager paid off since the revenue per available room rose by 12.8%.Nearly double-digit or better growth in the revenue per available room was quite common last November. Austria (+17.6%), Sweden (+14.7%), Belgium (+14.6%): the trio in the lead may rejoice over strong growth in their average daily rate. They are even ahead of Spanish hotels, which are in top form at this end of the year (+13.2%). Germany succeeded in improving over last year, which was nonetheless an excellent year thanks to the FiFA World Cup, with an increase by 8.0%. The Netherlands and the United Kingdom continue on an uptrend despite a slight drop in occupancy rate, which was fairly significant for the upscale segment in Great Britain. In Eastern Europe the morale is good. Poland continues to catch up with 8.1% growth, even if its RevPAR remains well below that of its neighbors. Starting with the Czech Republic which is improving: although growth of the RevPAR was relatively weak (+0.3%) on twelve cumulated months, the month of November closed with a 6.0% increase after a record month of October (+22.0%). Hungary, meanwhile, adopted a bold rate strategy (-6.1%) to boost occupancy (+11.5 points). The wager paid off since the revenue per available room rose by 12.8%.

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