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European hotel prices on rise as economy booms

A booming European economy, especially in Central and Eastern regions, has led to a 4.8 per cent hike in rates

Pictured: Prague

A booming European economy, especially in Central and Eastern regions, has led to a 4.8 per cent hike in hotel rates.

Average room rates in Europe hit €165 (£146), with 0.5 per cent growth also recorded in room occupancy to 76.6 per cent for October, according to the latest worldwide poll of full-service hotels from HotStats.

Pablo Alonso, CEO of HotStats, said: “According to the European commission president, Jean-Claude Juncker, the benefits of structural reform implemented in the wake of the global financial crisis are finally coming to fruition. Europe’s economy is now booming, fuelling business and leisure tourism across the region and this is great news for hoteliers.

“Whilst Juncker has cited the EU’s newfound unity after Britain’s vote to leave as being a catalyst for the economic recovery, it is more likely due to the stand out performance of countries in the CEE, which is reflected in the health of their hotel industry.”   

Hotels in Prague saw a 3.8 percentage point increase in room occupancy to 89 per cent, as well as a 6.3 per cent increase in average room rate to €114 (£101).

“Economic growth in the Czech Republic is expected to reach 4.3 per cent in 2017, up from 2.4 per cent in 2016,” said Alonso. “Furthermore, according to Prague City Tourism, for the year to September 2017, the number of overnight stays at hotels in Prague increased by 7.2 per cent year-on-year.

“Whilst the increase in international visitors was recorded at 6.8 per cent, domestic visitation was up by 11.1 per cent, illustrating the high disposable income levels and propensity to travel of the Czech population, which, again, is extremely positive for Prague hotels.”

For hotels in Warsaw, performance was driven by key events at the Warsaw Expo, including approximately 160,000 visitors to the Warsaw Moto Show and more than 45,600 visitors to the World Travel Show.

As a result of the high demand levels, hotels in the Polish capital were able to record an 11.5 per cent increase in achieved average room rate, to €119 (£105), which offset a 0.7 per cent decline in occupancy to 81.4 per cent.

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