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Berlin hotel rates spike thanks to Cisco IT conference

HotStats European review reveals 10 per cent year-on-year increase in the German capital
07/04/2016

Pictured: IT conference Cisco Live took place in Berlin in February

IT conference Cisco Live! helped Berlin hoteliers achieve a 10 per cent year on year increase in average room rates. 

The average rate in the German capital hit 150 (£121) during February, according to the latest European Chain Hotels Market Review from HotStats. Cisco Live! attracted 13,000 delegates and fuelled a 10 per cent increase in revenue per available room. 
The overall picture was more sobering though, as food and beverage and conferencing revenues fell by 5 per cent and 10 per cent.
Elsewhere, Budapest hoteliers held position despite the absence of the European Regional Consultation on the World Humanitarian Summit, which boosted performance in February 2015. Occupancy slid slightly by two points to 62 per cent and average room rates increased five points to €85 (£69).


The report authors said: "The Cisco Live! congress is clearly of huge benefit to hoteliers in the host city, with profit per room in the previous location, Milan, down by 34.7 per cent year-on-year in January 2016, having last hosted the event in January 2015.


"Whilst Budapest hoteliers lamented the absence of demand related to the European Regional Consultation on the World Humanitarian Summit, which boosted top and bottom level performance this time last year, they were able to salvage profit growth for the month, which is no mean feat considering the growth in February 2015 was recorded at +56.4 per cent."


Prague hotel performance remains strong, with revenue per available room up by 12 per cent in February, despite an 11 per cent fall in food and beverage revenues for the year to date.  


Meanwhile, in HotStats' MENA (Middle East and North Africa) Chain Hotels Market Review, the absence of the International Defence Exhibition and Conference (IDEX) was blamed for Abu Dhabi hotel rates slipping by a quarter, to US$158 (£112). 


The bienniel event, which will take place again in the emirate next year, "significantly" affects hotel profits and was primarily responsible for the 51.2 per cent spike in profits in February 2015, report authors said.


Hotels in Amman are "in the midst of a challenging period", with declines in conference revenues (26 per cent) and food and beverage (13 per cent). Rates in the Jordanian capital remained stable at US$155 (£110).


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