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Hotels in Europe Reported Declines for February 2020
It is not a secret that the global hospitality industry, as well as other tourism-related industries, is experiencing troubles due to the coronavirus outbreak. As more and more countries are closing their borders and isolating their people, many industries start suffering from declines. Many leisure tourists prefer to cancel their bookings, and businesses prefer to organize their meetings in home cities and countries.
We are yet to see the real losses caused by the pandemic, but the preliminary results for February 2020 do not look tragic. Hotels across Europe reported declines that are, however, not as drastic as one could imagine. The year-on-year results for February 2020 are the following. The occupancy fell by 1.8% to 63.3% in total. The average daily rate showed a modest growth of 1.2% to 101.68 euro. The revenue per available room was slightly negative, a decline of 0.6% to 64.68.
As it is not hard to see, the February data doesn’t look too bad, but it doesn’t reveal the real impact of the COVID-19 on the hotels of the continent. As most protective measures and quarantine were launched in March 2020, we are yet to see how much the industry suffers.
One of the most popular gateway cities in Europe, London, also reported slight declines for February 2020. Hotels in London had a negative performance last month. The occupancy went down by 2.3% to 76.3% in total, and the average daily rate was even growing by 0.3% to GBP133.57. Naturally, this small growth couldn’t offset the decline in occupancy, and so London hotels had their revenues per available room drop by 2.1% to GBP101.91.
However, there is information about the performance of hotels in London during the first week of March (March 1-8). These metrics show a real situation in the hospitality market. The preliminary data for 1-8 March is the following: the occupancy lost 21.0% to 65.5%, the average room rate declined by 8.5% to GBP128.39, and RevPAR was down by 27.7% to GBP84.14. As we can see, both the occupancy and RevPAR had double-digit declines. Moreover, London hotels had their main three metrics fall every day for 14 consecutive days from February 24 to March 8. As there are no signs of the end of the pandemic at the moment, it is safe to assume that the performance of London hotels in March 2020 is going to be significantly below the results of 2019.
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