Europe is feeling the impact of the worldwide economic slump. After a summer that was more vacant than hoped, hotels posted another drop in occupancy in the fall which ought to have been synonymous with back to business (- 3.9 pts). The growth in the average daily rate is losing air, particularly in the upscale category. This rate growth is limited to 1.4% and doesn’t make it possible to offset the drop in OR and leads to a 3.6% drop in Europe’s RevPAR. This follows the previously recorded drop in August.
Close to 80% last year, the occupancy rate fell again in September 2008 to 75%. While this is not an absolute catastrophe, this drop testi.es to an increasingly uncertain future. In September the hotel industry felt the effects of the overall moroseness as much collapse of the financial markets that...
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