February 2005 saw a continuation in European recovery

February saw a generally positive situation for the European hotel industry: monthly results were up, with a 2.8% rise over February 2004. This encouraging performance varied by category. The highest increase occurred in the 2* category, with a 7.1% rise to 42.8 euros, resulting from the combined effect of the rise in occupancy rates and average daily rates. The super economy segment registered positive results, though contrasted. With an average daily rate on the rise by 4.2% the 0* category underwent a slight drop of 1.5 points in the occupancy rate, which impacted RevPAR (+1.8%). For its part, the 1* category continued to shine, with a 5.5% rise in RevPAR. For the midscale segment, a 3.7% increase in RevPAR was achieved. Finally, the 4* category recorded the lowest results in February, with a RevPAR increase of only 1.2%. Four-star results are a symptom of a segment that is in the reconstruction phase, with a rise in average room rates limited to 0.3%Finally, February 2005 will continue the medium term trend. The United Kingdom and Northern Europe are ahead in their recovery, while new EU member states are recording good results. In Germany and France, the recovery will continue and Spain will go through a difficult period. Though there is as much optimism as last year, it is not yet time to be enthusiastic. The weakness of the dollar and a real problem in the upscale segment - for hotels whose business mix is dependent on American customers - and forecasts for 2005, are still unfavourable. We will nonetheless wager that the public authorities will do better than in 2004, will begin to understand the amplitude of the situation and take appropriate action.Over a 12-month period, the indicators are also practically all on the rise; RevPAR rose in all categories. Only...