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A slow recovery in June which ends a first semester largely impacted by the health crisis

Over the first half of 2020, the European hotel industry saw its occupancy rate fall by 40.8 points, its average daily rate by 12% and its RevPAR by 63.2%. The higher-end segments, which are more dependent on foreign visitors, were more affected than the more economical segments. Occupancy falls ranged from 32.5 points for the budget segment to 45.3 points for the upmarket and luxury segments, and RevPAR fell from 52.2% to 67.3%.

In terms of occupancy rates, over the semester, not all countries have been affected in the same way. Due to a variety of reasons, most notably the share of domestic customers in the nationality mix, some countries such as Italy (-49.7 pts / -74.1% of RevPAR), the Netherlands (-47.5 pts / -68.2% of RevPAR), Austria (-47.7 pts / -66, 0% of RevPAR) and Portugal (-47.3 pts / -71.5% of RevPAR) were more affected, while others resisted better, specifically Germany (-39.3 pts / -58.5% of RevPAR) and France (-37.2 pts / -62.1% of RevPAR).

Until last February, however, European hotel performance was stable or even slightly up compared to the previous year. From March onwards, with the start of lockdowns in most European countries, these indicators fell sharply. The European occupancy rate (calculated in relation to the number of existing rooms, whether open or closed) fell below 25% in March before reaching a low of 4% in April. This was followed by the start of a slight recovery in May (6.8%) and then in a larger one in June (17.9%), in line with the pace of lockdown easing in several European countries.

In June, the recovery in Europe became more pronounced, but unevenly so between countries. In terms of occupancy, some countries are performing better than others.

This is notably the case in France or Germany, which over this period has risen to 24.5% and 20.6% OR, after being at 8% and 8.5% in May. This upturn was driven by a large proportion of domestic customers (64.3% for France and 76.2% in Germany) compared with countries such as Italy (50.5%), Spain (34.0%) and Greece (16.2%), which reported lower occupancy rates (9.6%, 7.9% and 6.2% respectively).

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