The Europe, Middle East and Africa (EMEA) hotel market has delivered a mixed performance so far in 2011. Research published last month by Jones Lang LaSalle Hotels revealed that the sector experienced a slowdown during the second and third quarters of 2011. However, the firm was positive that the majority of the 37 cities included in its survey will see some growth in their trading volumes into the first few months of 2012. Mark Wynne-Smith, chief executive officer of the company in the EMEA region, explained that despite a good beginning to 2011, confidence in hotel markets has fallen recently.
"While the year started off with evidence of economic recovery across the region and strengthening investor confidence, the second and third quarters experienced increased uncertainty and the increasing risk of a widespread economic slowdown," he stated. As a result, investors have become more negative in their predictions for the hotel market's future performance. According to the report, London, Istanbul, Paris and Munich are likely to attract the greatest attention next year.
The HotStats European Chain Hotels Market Review for October from TRI Hospitality Consulting recently highlighted the strong performance of establishments in Istanbul. The organisation found that total revenue per available room (TrevPAR) and total gross operating profit per available room (GOPPAR) both climbed significantly in October compared to the previous month. TrevPAR was up by 19.8 per cent, while GOPPAR jumped by 43.2 per cent in this period. At the other end of the scale, Rome and Prague both suffered, recording TrevPAR declines of 5.2 per cent and 8.4 per cent respectively. Meanwhile, GOPPAR in Rome slid by 21.4 per cent and in Prague this dropped by 12.6 per cent.
Managing director at TRI Hospitality Consulting Jonathan Langston commented: "Sluggish European economic growth is beginning to impact hoteliers." He went on to predict that trading conditions for the majority of firms in this industry will worsen, at least for the next few months. Mr Langston added that the latest findings are the first for "a long time" to show a decline in GOPPAR across most of the main hotel markets on the continent.
- Friday 16 December 2011