Hotel Report July 2020
Performance Analysis: July 2020 in Some Major Destinations in Germany
The restart after Corona-induced emergency has taken its first step.
The view into the market data is rather sobering. The city hospitality industry is still far away from an occupancy that would cover costs or even make a profit. It is also true that some comments on the market situation and the current trend barometer were sent to us while many of the workers are still on the temporary layoff.
Another striking fact:
The significantly high changes in the forecast data for July and August. For example, our hotel partners in Dusseldorf participating in the trend barometer adjusted their forecast of occupancy for July 2020 from – 39.5% (previous month’s trend, surveyed on May 25, 2020) to now – 70.9% (surveyed on May 25, 2020). This is a change of 30% – normally it is a low single-digit value.
Corona has created an unprecedented situation. Lack of experience and a market that can completely change from one day to the other is the reason for this. Nowadays, it is very crucial to have tight planning processes.
In general, the city hospitality industry is recovering slower from the crisis than the holiday hospitality industry in prime locations.
Across Germany, the occupancy closed at 25.1% in June 2020. The average room rate reached € 88.40 and the RevPar balance was reported of € 22.20.
We wish you a successful July, all the best and stay healthy and optimistic!
Your Fairmas Hotel-Report Team