According to data compiled by STR Global, in March 2009 European RevPAR fell 14% year-on-year, split between declines in both average daily rate (ADR) and occupancy.Northern Europe (defined by STR as Denmark, Estonia, Finland, Iceland, Ireland, Latvia, Lithuania, Norway, Sweden and the United Kingdom) fared better than Southern or Eastern Europe with only a 14.3% decrease in RevPAR, driven by falling rates.
Dublin’s RevPAR dropped 27.2% due to a fall in occupancy of 12.4% and ADR, which declined by 17%
James Chappell, managing director of STR Global, said, “What shouldn’t be forgotten is that the first eight months of 2008 were very strong, so year-on-year comparisons are by definition exaggerated. The reverse may well be true towards the end of the year, and comparative results may start to stabilise from September onwards.”
Average room rates in Dublin fell consistently in the six weeks leading up to 11 April 2009. Occupancy held up more steadily and the average occupancy of 57% over the same period is an improvement on earlier in the year.
The latest monthly Hotel Market Forecast report from STR Global which predicts market conditions based on the most recent available economic and hotel performance data together with advanced modeling of over 300 economic indicators, expects that Dublin’s RevPAR decline for 2009 to be in the -5 percent to -8% range, with falling occupancy continuing to be the main culprit.