Occupancy is up but average daily rates remain down in Italy’s lodging industry, according to the latest data from STR Global.
Still, that’s a welcome change from 2009 data, the research group reports from London.
According to HotelNewsNow.com, Italy’s hotel occupancy recovery is in line with the pattern seen across most of Europe.
“Demand (occupied hotel rooms) is up in the majority of Italian hotel markets we survey, which, together with fairly static supply (available rooms), is driving occupancies,” Elizabeth Randall, managing director of STR Global, tells HNN.com.
“It can be expected that in the normal course of events, ADR will trend upward as a result of stronger occupancies.”
Occupancy across most Italian markets during the first quarter of 2010 has been fairly robust compared to the previous year, with several markets showing strong double-digit growth.
The occupancies in Turin have improved by over a fifth. By contrast, ADR is largely in negative territory.
Nevertheless, reports HNN.com, the general improvement in occupancy between 2010 and 2009 has breathed some life into the Italian hotel market, and results in just less than half the markets surveyed are showing growth in revenue per available room (RevPAR).
“It is worth recalling that 2009 was a very weak time with the global financial crisis,” Randall says.
“Looking back a further 12 months to before the crisis, all markets, barring Naples and Perugia, still have much ground to make up on 2008.”
“The Italian hotel market is expected to see recovery and not growth during the course of 2010, but it would be prudent to avoid excessive optimism”, says Marco Malacrida, director of STR Global in Italy.
Source: The Real Estate Channel
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