Coronavirus Hits German Hotel Industry Hard: More Than Every-3-Guests Stay Away
Berlin - Since 1 March 2020, hotel occupancy in Germany has decreased by more than 36% compared to the previous year: This is shown by the analyses of the market research companies STR and Fairmas. They show that in addition to air transport, logistics, trade fair organizers, tourism service providers, cultural institutions and domestic industry, the hotel industry in particular is struggling with dramatic declines in sales.
"We assume that the bottom has not been reached yet. In the first few days of March, the hotels still had comparatively good levels of advanced bookings. Due to event cancellations and travel warnings, the booking situation is worsening with each passing day and even greater declines are to be expected," states Niels Schroeder, Managing Director of Fairmas GmbH.
Internationally, the corona crisis is leading to major distortions for the hotel industry. STR currently sees massive slumps for the entire European hotel market. Demand in many countries has already been falling since February. The situation has been worsening since March and occupancy rates fell last week, in some cases to single-digit figures. Italian cities such as Rome are particularly affected with a current occupancy rate of 6%, whereas London is still the most stable with an occupancy rate of around 47%.
"The effects of the corona crisis are having an enormous impact on the entire European hotel market. Currently, city destinations and winter travel destinations are mainly affected. An extension of the current situation over time would lead to further aggravation of the situation in the typical holiday regions," says Robin Rossmann, Managing Director of STR.
The surveys conducted by STR and Fairmas are based on long term, mainly automated daily data transmission from the hotel systems. The figures collected by the cooperation partners thus reflect the real business development of over 1,700 hotels in Germany and 13,000 hotels in Europe.
STR is a leading global provider of performance benchmarking and market analysis for the hotel industry. As a partner of more than 68,000 hotels worldwide, the data covers more than 9.1 million hotel rooms. This provides operators, investors, consultants and associations with up-to-date information on demand and supply trends in the global hotel markets. In October 2019, STR became part of the American CoStar Group, Inc. (NASDAQ: CSGP), a leading data and platform service provider for all commercial real estate uses. Further information can be found on the websites str.com and costargroup.com.
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