UK Chain Hotels Market Review - March 2018
Year-on-year profit per room dropped by 5.6% this month as the wettest March in a decade, as well as unseasonal snow storms, added to the already challenging trading conditions for hotels in the UK.
Duty of care, cost management and policy compliance have long been key focus areas for travel managers. However, a snap poll at this years IHG Expo, an annual event run by InterContinental Hotels Group (IHG) for travel buyers, bookers and managers, revealed that they are not the only priorities when putting together a travel programme.
This market pulse provides an overview of the tourism and hotel market in Paris, France. It discusses recent tourism trends and the causes for optimism for 2018 as well as providing a summary of the extensive hotel pipeline.
STR analysts note that this is the first March ADR decline in Berlin since 2012. While ITB Berlin 2018 (7-11 March) pushed performance during the beginning of the month, the Easter calendar shift likely resulted in price-sensitive leisure demand rather than corporate business at the end of the month.
In addition to continued and significant supply growth, which pulls down occupancy levels, STR analysts attribute the performance decreases to unseasonably-cold temperatures, snow and strong winds that came from the Siberian weather system labeled as the 'Beast from the East.'
Robust revenue growth and cost savings helped hotels in Europe record a 16.0% year-on-year increase in profit per room in January, signalling a very strong start to 2018, according to the latest worldwide poll of full-service hotels from HotStats.