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November: towards the best year since 2000

In November 2006, Europe’s hotels followed the same trends that they experienced in the previous months.The RevPAR rose by 6.3%. Average daily rates continued to grow inexorably. The Benelux, Germany and the United Kingdom hold the seats of honor this month, along with Poland where business is back on the rise.

Europe’s hotels continue to post cheering results with revenue per available room up by 6.3%. The impact of the good economic situation and demand that is up continues to have a positive effect on average daily rates. These grow in a uniform manner across all categories by 5.3% on average, which explains the good results in terms of RevPAR since the average occupancy rate showed less progress (0.7 point). Budget and hard budget categories post strong occupancy rates up by more than 2 points. Meanwhile, the mid- and upscale segments are relatively stable with respect to 2005. On the last twelve months, the moral of the hotel industry is doing well (+ 7.1%). On the whole of the year 2006, growth in the RevPAR should be the strongest since 2000.Hungary and the Czech Républic also experienced a relative disaffection of clientele in this second to last month of the year. Occupancy rates in both countries posted drops by nearly 5 points, but Hungary succeeded in reversing the trend thanks to a solid pricing policy (+10.4%) and ended the month with a positive change for its RevPAR (+ 2.4%). Czech hoteliers did not have so much latitude. The month was negative (- 5.6%). But, fortunately, average daily rates were up (+ 4.1%), break the trend set by results on twelve cumulated months (-11.1%). Nonetheless, it is in Eastern Europe that the great winner for the month of November may be found. Poland, in fact, posts significant growth for its RevPAR: +17.7% thanks in particular to a clear improvement in its occupancy rates that, starting from a very low position, are slowly reaching the average levels observed elsewhere in Europe.Among European countries with the best results, this month the United Kingdom posts an occupancy rate higher than 80%! British hoteliers take advantage of this strong demand to increase their rates (+8.1%). While London remains the generator of this growth, Manchester and Birmingham also fall into step close behind it this November. Liverpool, meanwhile, remained slightly behind these remarkable overall results.The month was also very good for countries in the Benelux. In Belgium, average daily rates were able to begin a forward march (+6.4%) as demand is up (+4.3 points). All of Brussels and Belgium closed the month with growth by 12.9%. The same favorable trend could be observed in the Netherlands where double-digit growth in the RevPAR nearly reached 10% (+9.9%).Germany ended the year in high gear (+ 7.4%). November is traditionally busy with a high business volume and 2006 was no exception. As throughout the rest of the continent, business remained stable with respect to last year and it is the average daily rates of upscale segments that brought the entire German hotel industry up (+ 7.3% across all categories). Among the great winners of the past month, Berlin and Munich posted double-digit growth in their revenue. France’s positioning is average within the global picture in this second to last month of the year with 5.7% growth.Things are less certain in Southern European countries. Spain posts slight growth in its revenue per available room (+ 0.7%). A positive result that is to the credit of the always very dynamic Barcelona. The capital of Madrid and Valence, on the other hand, suffer from a drop in their occupancy rate. Madrid’s hoteliers nonetheless succeeded in compensating for this hopefully temporary drop with growth in their average daily rates. Italy posts a drop in its RevPAR (-1.9%). Turin lost its pre-Olympic élan at the end of this year 2006. But Italian hoteliers succeeded in offsetting a drop in occupancy thanks to the strong growth of average daily rates (+ 4.3%).Hungary and the Czech Républic also experienced a relative disaffection of clientele in this second to last month of the year. Occupancy rates in both countries posted drops by nearly 5 points, but Hungary succeeded in reversing the trend thanks to a solid pricing policy (+10.4%) and ended the month with a positive change for its RevPAR (+ 2.4%). Czech hoteliers did not have so much latitude. The month was negative (- 5.6%). But, fortunately, average daily rates were up (+ 4.1%), break the trend set by results on twelve cumulated months (-11.1%). Nonetheless, it is in Eastern Europe that the great winner for the month of November may be found. Poland, in fact, posts significant growth for its RevPAR: +17.7% thanks in particular to a clear improvement in its occupancy rates that, starting from a very low position, are slowly reaching the average levels observed elsewhere in Europe.

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