STR says European Hotels See 13 Percent Drop In Rates

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A big fall in the average room rates are at the very root of major problems for European hotel chains. This news comes in from James Chappell, who is he managing director of research consultants for STR.

In the latest survey that has been done by STR, they found that the average daily rates, or ADR, for hotels in Europe fell by 12.5 percent in May. This is the steepest decline when compared to the Americas, Middle East, and Asia Pacific. The Asia pacific area only fell by 6.8 percent, which is about half of what Europe saw.

There was one region of the world that saw a growth in numbers last month, and that was the Middle East. They showed a 3.2 percent increase last month. Other numbers from STR show that only four out of 40 European cities surveyed saw growth in the average daily rates. These four cities were Tel Aviv, Malmo, Helsinki, and Frankfurt.

Mr Chappell went on to say that the trade fairs helped out Frankfurt a lot. However, on average the European occupancy in May still fell by 9.7 percent. Russia seemed to be the hardest hit with a 20.7 percent decline. Germany, on the other hand, only saw a decline of 3.1 percent. This was helped in part to the Frankfurt events.

Just last month, STR had reported a very steep drop in European occupancy, as well as room rates, for April. In April the occupancy in the German city of Dusseldof actually fell by 31.8 percent to only 46.6 percent. On top of this, the ADR went down 46.5 percent.

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