Horwath Estimate 2002: European Hotels Moderately Optimistic

The results of leading luxury hotels in European cities are expected to increase little this year. This is shown in the annual Horwath Estimate published by Horwath Consulting Europe. The European hotel market, still recuperating from the decrease in the world economy and the consequences of September 11, is moderately optimistic. In general, it is expected that the average room rates will remain stable. Still, it is hoped that the occupancies this year will turn out to be a percentage point higher than in 2001.

The most expensive hotel rooms are still those in London (EUR 280), followed by Geneva (EUR 270) and Paris (EUR 236). The highest price increases are expected in Budapest and Brussel. It is expected that the average room rates in these cities will increase by 12 to 13 Euro.

Amsterdam has reached fourth place in 2001 where average room rates for luxury hotels are concerned. Together wilt Barcelona, Amsterdam forms the sub top: below London, Paris and Geneva, but clearly above cities like Stockholm, Vienna and Brussels.

For 2002, a small increase in occupancy is expected in most cities. Most hotel managers remain optimistic, despite some negative trends that have developed in the last few months. For instance, it appears that compared to previous years, international convention guests are less prepared to pay for the luxury of a five star hotel. Still, it is expected that in particularly the fall will compare favourably to fall 2001, when the attacks in New York had a direct negative effect on the occupancies.

With the expected recovery of the economical situation, the number of hotel guests should also increase in 2003. For hotels in European cities, there is a clear task for the sales and marketing departments to strike in this period. Many potential guests have chosen to stay closer to home this year. With good strategic planning of the market approach, they can be persuaded to travel to the various European cities in the coming years.


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