Europe’s hotels should see growth slow in 2013 due to the prolonged economic downturn, according to a new report from PricewaterhouseCoopers.
Paris tops the fullest ranking with occupancy predicted at 79.1%, the most expensive with a forecast ADR of €267 (US$356) and the city with the highest projected RevPAR at €211 (US$281) for 2013. London will see negative growth but will still enjoy high absolute trading and profitability levels. Some cities are however expected to show robust RevPAR growth. These include Paris, St. Petersburg, Russia, and Edinburgh and more modest increases should be seen in Frankfurt, Berlin, Moscow and Dublin.
The forecast leaders in terms of euro currency include: St. Petersburg with expected 7.3% RevPAR growth over 2013, followed by Moscow at 5.2%, Paris at 5%, Frankfurt at 3.5%, Berlin at 3.2% and Dublin at 3.1%. In local currency terms, Paris is the frontrunner with predicted 5.0% RevPAR growth, followed by St. Petersburg, at 4.8%, Edinburgh at 4%, Frankfurt, Germany, at 3.5%, Berlin at 3.2% and Dublin at 3.1%.
“2013 will see St. Petersburg, Moscow, Paris, Frankfurt, Berlin and Dublin clear winners in terms of RevPAR growth. For others we expect little or no RevPAR growth and some, most notably London, will see negative growth. For London coming off an Olympic high, this is perhaps expected and the city will still enjoy very high absolute trading and profitability levels,” said Liz Hall, head of hospitality and leisure research at PwC.
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