HOTEL MARKET TRENDS 2009

For example, according to a report issued by MKG Hospitality, the average occupancy rate in Malta and Netherlands was by 14.5 percentage points and 10 percentages points, respectively, lower than its March 2008 level. The average occupancy rate in Spain and Austria was lower by 8.6 and 7.2 percentage points respectively, while the average occupancy rate in France and the United Kingdom was lower by 6.4 and 5.1 percentage points, respectively. From the major European countries only the hotel market in Germany registered in March 2009 an improved occupancy rate, which was higher by 3.1 percentage points than its March 2008 level.

The Average Daily Rate (ADR) was also at lower levels compared to March 2008. The Spain hotel market registered the worst performance as ADR dropped 16.8%, followed by Malta where the ADR registered a 12.9% drop. From the markets mentioned in the MKG Hospitality report only Switzerland registered a minimal ADR increase of 0.3%. Also in Germany the average ADR remained stable. With occupancy and ADR falling in most hotel markets annual declines in Revenue per Available Room (RevPAR) were even more severe. Thus, Malta, Spain and Netherlands registered RevPAR declines in excess of 20% with Malta registering a 35% annual decline in RevPAR. Average RevPAR in Spain dropped 28.4% while in the Netherlands it dropped 21.1%. Italy, United Kingdom and France registered RevPAR declines of 13.8%, 10.7% and 9.7%, respectively. Germany was the only country among the ones mentioned in the report that registered an increase in RevPAR (5.5%).

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