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Record Loss of Hotels in Athens in November

Even though hotels in Greece recover their positions, and year-on-year stats feature the growth of both profit per room and total revenue, November was a difficult month for hotels in the Greek capital. Their gross operating profit per available room was -€12.16.

Of course, November is traditionally a weak month for hotels in Athens, but there is a constant decrease in room occupancy. In November 2009 room occupancy was 51.1%, in 2010 it was 48.9%, and in 2011 room occupancy fell to 38.9%. This year occupancy was a bit better and estimated 43.1%, but this was the result of significant discounts on room rates. Room rates for leisure tourists fell by 12.3%, for corporate travellers by 17.6%, and -2.3% for tourist groups. The average achieved rate was €138.77. This is comparable to many popular European markets - Brussels (€133.44), Berlin (€110.03), or Madrid (€116.89). However, revenue per available apartment of hotels in Athens was much below the majority of European destinations. If Athens hotels posted RevPAR of €59.86 in November 2012, the same figure in London was €163.18.

According to many experts, hotels in Athens suffer because of the instability of the Greek economy and absence of government actions. Even though the results of the hotels is better than in 2011 and their profits grow, they still post negative GOPPAR that is currently €-12.16 per available room.

27.12.2012

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