The majority of European countries reported a weak August in the hotel business, which only comes to strengthen the worries about the recession still threatening the industry. However, there was an exception to the rule: Italy.
Hotel Industry in Italy
In a recent article published by Hospitality.net the data released by STR Global shows that the hotel industry all over the world is showing signs of improvement.
In Italy, things are looking better for the hospitality industry. In Rome, the occupancy rate in August 2009 showed a 17.9% increase compared to the same period last year. But Rome is not an isolated case. Both Florence and Naples reported increased occupancy rates in July and August 2009. However, the revenue per available room dropped in Italy by 18.1% in August 2009 compared to last year.
Although Italy entered recession in the second half of 2008, later than the majority of other European countries, it’s showing signs of recovery earlier than expected.
Hotels in Russia
By comparison, both the occupancy rates and revenue per available room in Russia dropped in the first eight months of 2009, as it was reported in an article on Hospitality.net . Moscow reported a drop of 8.7% in occupancy rates in August 2009 compared to the same period last year, while the occupancy rates in St. Petersburg fell by 14.3%.
The forecast doesn’t look too good for Russia. The vice-president of STR Global, the leading provider of market data for the hotel industry, confirms that in Moscow the revenue per available room will drop by 26% by the end of the year and any improvement might occur by mid 2010.
What does the future hold?
The reports coming from most European countries are quite bleak. The hotel industry isn’t expected to perform much better during the last part of 2009. In UK, it’s expected that hotels will report a decline in revenue per available room by the end of 2009 but with hopes of improving the numbers in early 2010. While the occupancy rate is not doing that badly in the UK, the average room rates are the main culprit for the drop in revenue.
Photo by Jessica Spiegel and may not be used without permission.