A new study by PricewaterhouseCoopers forecasts that Stockholm will see double the RevPAR growth of any other large European hotel market in 2012.
The PricewaterhouseCoopers European Cities Hotel Forecast 2011 & 2012 report predicts that of Europe’s major hotel markets only Stockholm will manage double digit RevPAR growth in 2012, although in general the most markets will see at least modest growth.
The report cites the Swedish economy’s strong recovery from recession as the driver of Stockholm’s improving RevPAR, although it acknowledges that the country’s economic growth is likely to slow in 2012.
“Sweden is experiencing robust economic performance with one of the strongest recoveries in the EU and we expect this to buoy up ADR and occupancy levels. An issue for the city is where to build almost 8,000 attractive new hotel rooms in the center of Stockholm,” the report states. “Notwithstanding conflicting data sources, to reach future 2020 growth goals, a report by Rese-och Turistnäringen i Sverige concludes that Stockholm will need 50 new hotels and 8,000 new rooms.”
Other European cities the PwC cites as poised for strong year-on-year RevPAR growth in 2012 are London at 8.3%, Amsterdam at 6.5%, Madrid at 5.6%, Moscow at 5.6%, Dublin at 5.5% and Berlin at 5%.
The only major markets set for decreasing RevPAR in 2012 are Rome at -0.1% and Belfast at -0.9%.
London is predicted to have the highest occupancy rates in 2012 at nearly 85% while Edinburgh, Amsterdam, Paris, Vienna and Stockholm are all expected to see occupancy in excess of 75%.
The report predicts Geneva to have the highest ADR in 2012 at about €265 (US$365), while ADR in Paris and Zurich will be above €200 (US$273).