Europe : best monthly results in 5 years

The 9.8% rise in RevPAR registered in April over the previous year simply constituted the best performance for the European hotel industry in nearly 5 years. Good economic results were seen in April in the majority of countries in the European Union, as Dorthe Thing, Manager of the Sheraton Stockholm, explains, “Both Swedish and international companies registered better results, thus leading to a rise in business travel”. The calendar has been favourable to the European hotel industry: Easter fell in March this year, business tourism profited from a longer period of activity, to the benefit of hotels positioned on this segment. Everything came together to make a reinvigorating cocktail: a combined rise in average daily rates (+4.5%) and occupancy rates (+3.3 points).HTR: How do you explain the success of Etap Hotel in Germany? _ A. W.: The brand was launched nearly simultaneously in both France and Germany; it is true that it has been successful here. It is a new product, both at the brand level and at the building level, as they are nearly all newly constructed units. All this was an immediate success. There is still room for Etap expansion, mainly in city centres. At the end of 2004 and beginning of 2005, new openings occurred in Berlin, Hamburg, St-Pauli, and Stuttgart. A new opening is also planned for Munich in 2006.With the exception of the budget hotel sector, which largely compensated for a drop in its number of visitors (consequence of its expansion in countries more mature in this type of product) by ri- sing average daily rates, all indicators are in the black in all categories. These very good results are driven by the midmarket and upmarket segments. The 3* and 4* categories registered rises equal to or greater than 10%, while 2* hotels rose...