Edition February 2015 Performance analysis of selected German cities January 2015 INFINITY - fotolia.com
January 2015 in comparison to the previous year 1 Current overview of hotel performance for selected destinations in Germany: Berlin Occ: 56%, ADR: 82, RevPar: 46 In January, occupancy increased by 7%. Staff-friendly long weekends at the turn of the year ensured plenty of leisure business, though room rates were weaker. Occupancy during the Grüne Woche ( Green Week ) was far better than expected. The Panorama and Fashion Week events were almost able to offset the negative impact of the loss of the Bread & Butter fashion fair. Only the ADR was negative, sadly (-6%). Thus, RevPar (+0.4%) could be increased slightly, despite the high occupancy levels. Demand in January is very sensitive to room rates. Cologne/Bonn Occ: 60%, ADR: 107, RevPar: 65 In January, occupancy rose by 3% and room rates decreased as much as 7%, leading to an 0,5% rise in RevPar. There was no ISM event in January. This year, the ISM runs from 1 to 4 February 2015: last year it had taken place in January only (26 to 29). The imm cologne (19 to 25 January 2015) had already been sold out well in advance in many hotels. Together with the Living Kitchen event, there was much demand for the imm, allowing higher prices could be charged. The first two weeks of January are traditionally lacklustre. Many hotels have tried to attract leisure sector guests to the city by cutting room rates. Dresden Occ: 36%, ADR: 69, RevPar: 25 Occupancy in January rose by 7% and ADR by 4%. This led to a 11% rise in RevPar. Some hoteliers put down the slight increase in ADR mainly to price rises caused by the introduction of the minimum wage, which came into force on 1 January 2015. Leisure-sector business in January was strong, due to the staff-friendly timing of the school holidays at the turn of the year and the fact that the school holidays took up more of January than had been the case last year. Some hotels are looking forward to healthy conference business. 1 Temporary figures (daily collected) quoted are comparisons with those for the previous year Source: Fairmas GmbH/STR Global, details as of 02.02.2015 Page 2
Dusseldorf Occ: 67%, ADR: 97, RevPar: 65 January in Dusseldorf was marked by a year-on-year increase in RevPar (RevPar: +2%). Reasons for this: the PSI trade fair brought some business to the city. The IMA event, which should be taking place in January, was cancelled. This meant lost bookings for the hoteliers, one possible reason for the stagnation of room rates (ADR: +0.0%). Frankfurt Occ: 56%, ADR: 115, RevPar: 65 In Frankfurt, business this January was worse than last. Strong event-based and individual tourist business in the first two weeks of the month was not enough to counteract the negative developments in occupancy and room rate (Occ: -4%, ADR: -3%). Hamburg Occ: 61%, ADR: 94, RevPar: 57 January was positive overall. Occupancy in particular grew by 3%. With regard to room rates, there was nothing special to report on a year-by-year basis. This time around, many hoteliers registered very good advance bookings right at the start of January in response to numerous inquiries concerning events. A major increase in demand in MICE-segment was also noticed. Munich Occ: 68%, ADR: 130, RevPar: 88 Business in Munich in January 2015 was far better than a year ago (Occ: +5%, ADR: +12%, RevPar: +17%). The main reason for this encouraging development was the BAU trade fair (19 to 24 January 2015), which takes place every two years, and regularly ensures healthy room rates. Although the public holiday on 6 January 2015 (Epiphany) did have some negative effect on business sector trade, the good snow conditions had a positive effect on performance. Many guests on their way to Austria, Switzerland or Italy make a stopover in Munich. Page 3
Hotel Performance January 2015 /2014* Occupancy in % Average Daily Rate in Euro RevPar in Euro 2015 2014 Var. Var. % 2015 2014 Var. Var. % 2015 2014 Var. Var. % Berlin 56,0% 52,5% 3,5 6,7% 82,5 87,6-5,1-5,8% 46,2 46,0 0,2 0,4% Cologne / Bonn 60,2% 58,7% 1,5 2,6% 107,2 109,6-2,4-2,2% 64,6 64,3 0,3 0,5% Dresden 35,8% 33,4% 2,4 7,2% 68,5 65,9 2,6 3,9% 24,5 22,0 2,5 11,4% Dusseldorf 67,1% 65,9% 1,2 1,8% 96,7 96,7 0,0 0,0% 64,9 63,7 1,2 1,9% Frankfurt 61,4% 64,2% -2,8-4,4% 112,7 116,3-3,6-3,1% 69,2 74,7-5,5-7,4% Hamburg 60,5% 58,9% 1,6 2,7% 93,8 92,8 1,0 1,1% 56,7 54,7 2,0 3,7% Munich 67,7% 64,7% 3,0 4,6% 129,5 116,0 13,5 11,6% 87,6 75,0 12,6 16,8% *Source: Fairmas GmbH / STR Global, based on data from participants with daily data entry, Data as of 31.01.15 Legend Occ Adr RevPar Occupancy Average Daily Rate (net rooms revenue) Revenue per available Room (net logistics revenue per available room) Page 4
The Fairmas is published by: Fairmas Gesellschaft für Marktanalysen mbh, Sachsendamm 6, 10829 Berlin, Germany Solutions Dot WG GmbH, Kranzer Strasse 6-7, 14199 Berlin, Germany Fairmas Gesellschaft für Marktanalysen mbh specializes in market analyses and the development of planning and controlling software for the hotel industry. The company offers its international clientele a hotel benchmarking platform, as well as various software applications for the fields of budgeting, forecasting, controlling, management reporting and workprocess optimization. As a strategic management consultancy, Solutions Dot WG develops individual and customized strategies and solutions for companies in the hotel, catering and tourism, and provides support in implementing plans. Solutions dot also manages independent project implementation, is active in support management and interim management, as well as in the total quality management (TQM) sector. The Fairmas is edited by: Nadine Klilian, Marketing & Communications Manager, Fairmas Gesellschaft für Marktanalysen mbh, e-mail: ticker@fairmas.com Gabriele Kiessling, Consultant und Project Management, Solutions Dot WG GmbH, e-mail: ticker@fairmas.com Page 5
Disclaimer No representation or warranty (express or implied) is given as to the accuracy or complete-ness of the information contained in this publication, and, to the extent permitted by law, Fairmas GmbH / Solutions Dot WG do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it. Page 6