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.
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.