STR Global hotel performance The European hotel industry posted positive results in year-over-year metrics when reported in United States dollars, euros and British pounds for January 2011, according to data compiled by STR Global.
“Europe’s recovery continued in January 2011 with solid growth in occupancy and ADR,” said Elizabeth Randall, managing director of STR Global. “With a 5% increase in demand and limited supply growth, the outlook is promising. The Men’s Handball World Championship benefited Malmo and Gothenburg, as they were two of the eight locations across Sweden hosting the tournament. The championship, along with a trade fair in Munich, brought additional demand to the cities in otherwise low season months.
Key European markets show revenue improvement
Hotel revenue performance continued to improve in key European hotel markets, according to the TRI Hospitality Consulting’s January HotStats survey.
Amsterdam hotels delivered further RevPAR growth, with performance increasing by 17.8% to €83.07 (US$114.74) for the month, which represents the city’s 12th consecutive month of RevPAR growth.
High-end hotel performance in otherwise struggling Dublin also improved as the market experienced increases in both occupancy (3.4 percentage points) and average room rate performance (1.8%) to register an 8.4% increase in RevPAR performance.
Istanbul continued its streak of strong performance during 2010 by reporting robust RevPAR growth during January. In the 12 months to January 2011, RevPAR performance of high-end hotels increased by 21.1% to €134.02 (US$185.12), and gross operating profit per available room performance by 23.8% to €84.87 (US$117.23).
EMEA hotel investment market is back in action
2010 proved to be a year of recovery in EMEA for both hotel operators and investors alike, with investment volumes across the region totaling €7.7 billion (US$10.6 billion), compared to €3 billion (US$4.1 billion) in 2009, according to the Hotel Investment Highlights report by Jones Lang LaSalle Hotels.
Mark Wynne-Smith, CEO for Jones Lang LaSalle Hotels EMEA, said: “As corporate travel began to recover and investor confidence strengthened, last year marked the turning point for the EMEA hotel market. The year started off revitalized with a 36% increase in investment volumes in Q1 year-on-year and continued to accelerate throughout the course of 2010.”
The company expects the rebound to continue. However, expect less trophy assets to change hands during 2011. The year will likely see a growing number of secondary assets becoming available as financial institutions concentrate on releasing capital. The U.K., Spain and Ireland are expected to generate the majority of this activity, Wynne-Smith said.
Burgio resigns from NH Hoteles
NH Hoteles’ Gabriele Burgio’s resignation went into effect today. The Madrid-based company’s chairman and CEO took the helm in 1997 when the group had 66 hotels under management in Spain. NH Hoteles’ portfolio now includes 400 hotels in 24 countries.
Sol Meliá and Jin Jiang form partnership Spain-based Sol Meliá formed a strategic partnership with China-based Jin Jiang hotels to cooperate in marketing, sales, operations and development. The initial plan will focus on six hotels managed by each company in major Chinese cities and major European cities. They are: the Jin Jiang Tower and Marvel hotel in Shanghai; the Xinai Jin Jiang hotel in Beijing; the Jin Jiang Sanya Royal Garden Resort in Sanya; the Wuhan Jin Jiang International Hotel in Wuhan; and the West Capital International Hotel in Xi’an. In Europe the agreement will apply to: the Meliá Barcelona and Meliá Madrid in Spain; the Meliá White House in London; the Meliá Berlin; and the Meliá Royal Alma and Tryp François in Paris.
The hotels will not immediately change their respective brands, but Sol Meliá did not exclude the possibility of co-managing some of the Chinese hotels in the future.