PwC: Moscow, St. Petersburg, Paris To Lead Europe ADR Growth - Business Travel News

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PwC: Moscow, St. Petersburg, Paris To Lead Europe ADR Growth

January 14, 2013 - 03:45 PM ET

By Michael B. Baker

Changes in average daily hotel rates during 2013 for gateway European cities will be mixed, with a healthy portion seeing increases while a few key markets experience significant declines, according to a forecast by PricewaterhouseCoopers.

Moscow and St. Petersburg would see the largest year-over-year ADR increases of the 19 markets examined in the report, both projected at slightly more than 5 percent (based on euros). In Paris, PwC projected that ADR would increase 4.6 percent with occupancy hovering just under 80 percent, which would make it's hotels the fullest and most expensive European city in 2013.

"Paris has performed remarkably well in recent years with record ADR failing to dampen occupancy," according the report. "With the modest economic outlook, we don't expect this pace of growth to last, though. The market is still expected to grow, but much more slowly in 2013."

PwC for several other cities projected ADR rate growth of around 2 percent or less, including Frankfurt (2.3 percent), Edinburgh (2.1 percent), Berlin (2 percent), Dublin (1.9 percent), Vienna (1.8 percent), Prague (1.7 percent), Geneva (1.3 percent), Milan (1.1 percent), Rome (1 percent) and Lisbon (0.6 percent).

Lower ADRs are expected in Madrid (down 5.6 percent), London (down 4.2 percent), Amsterdam (down 3.6 percent), Brussels (down 2.7 percent), Zurich (down 1.6 percent) and Barcelona (down 1.3 percent).

Despite the projected ADR decrease in London, hotels there this year would be the third-most-expensive (and fourth-most-occupied) in Europe, according to PwC.

The report also projected that both spending on the number of meetings in Europe will decline in 2013 compared with the previous year.

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