09/16/2009  DUTCH HOTEL MARKET SUFFERS DUE TO RECESSION

    It has been revealed that the Dutch hotel market is suffering badly due to the economic downturn. Both occupancies and average room rates have reduced significantly. The rates were quite low in 2008 but it has now been predicted that by the end of 2009 they are going to be even lower, causing great concern for all those working and involved in the hotel and lodging industry in Holland. These results have come from Horwath HTL, who have recently been carrying out a lot of research.

    The 288 three, four and five star hotels that were researched, have shown disappointing results as the average occupancy rate has dropped by 4.4 per cent from 72.5 per cent in 2007 to 68.1 per cent in 2008. The market had gone through a small phase of recovery but these new figures mean that the phase is now over. This fall in percentage is the worst since 2003 and brings the hotel occupancy at a lower level than that of 2005. The RevPAR (Revenue Per Available Room) has also been highly affected and have witnessed a large decline in rates. A 10 per cent reduction has been recorded and therefore the RevPAR has gone from € 80 to € 72.

    Five star hotels have been suffering the worst due to the crisis, which can be expected as travellers are seeking out the best deals and prices they can, meaning low budget properties are becoming more popular. Luxurious properties have seen occupancy rates fall from 74.8 per cent in 2007 to 68 per cent in 2008. The average room rate has had a small increase from € 178 in 2007 to € 180 in 2008 but the RevPAR dropped from € 133 to € 122. The regions that have suffered the worst are the Amsterdam region, Utrecht region, North-Holland, Zeeland, Rotterdam region, Leiden/Gouda and Limburg.