December 2020: European hotels stabilize at a depressed level

In Europe, hotels' occupancy rates continued to be very low yet slightly higher than in the previous month, reaching 16.1% (-45.8 points compared to December 2019). The average daily rate slightly increased from November as it reached €68 excluding taxes (-28.9% compared to the previous year). European RevPAR thus amounted to only €10.9 excluding VAT, a drop of 81.5% compared to the level recorded in December 2019. Among the segments, upscale & luxury hotels continue to post the steepest loss, followed by midscale hotels: their occupancy rates declined by 53.5 points (to 9.6%) and 48.1 points (to 14.0%), respectively. Their average daily rates also fell by 19.3% (€72.3 excluding taxes) and 21.3% (€116.4 excluding taxes), respectively, leading to a drop in RevPAR of 81.8% and 88.1% compared to 2019. The economy and budget segments, albeit the most resilient, saw their occupancy rates fell to 19.1% (-43.5 points) and 28.1% (-29.9 points), respectively. With average daily rates falling by 19.1% (€57.6 excluding taxes) and 12.4% (€49.5 excluding taxes), respectively, RevPAR fell to €11.0 excluding taxes (-75.3%) in economy hotels and to €12.2 excluding taxes (-57.5%) in budget hotels. Whereas some destinations fared better before the onset of the winter season, especially those with a dynamic domestic market, over the course of December all markets stabilized at a depressed level. Switzerland (-47.0 OR pts. / -72.6% RevPAR), France (-35.3 OR pts / -73% RevPAR) and Luxemburg (-50.4 OR pts. / -81% RevPAR) were only slightly less affected by the general downtrend. Conversely, countries such as Austria (-75.5 OR pts. / -94.3% RevPAR), Belgium (-60.7 OR pts. / -89.0% RevPAR) and the Netherlands (-55.4 OR pts. / -88.4% RevPAR) were among the biggest losers in the zone. Czechia (-96.1% RevPAR) and Hungary (-92.2% RevPAR), whose hospitality markets rely strongly on foreign demand, were...