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Conference downturn hits Hamburg hotels

Revenues from conference and banqueting have fallen by 20 per cent in the German city, year on year figures reveal
03/03/2016

Pictured: Hamburg's Hafen City development is part of a huge regeneration and building boom in the German city

A development boom in Hamburg has hampered hotel performance, as conference and banqueting revenues have registered a sharp downturn.

The latest HotStats European Chain Hotels Market Review reveals that building activity in the German city had the effect of softening volume during the second half of 2015, as occupancy fell by 3 per cent. January’s figures also indicate a fall in demand from meetings and events business, with food and beverage revenue down by 7 per cent year on year, while conference and banqueting declined by a fifth. Costs have added to the challenge faced in Hamburg, with average payroll up by 4 per cent across the city’s hotels. Rates however increased by 5 per cent from January 2015, to €130 (£100).

Elsewhere, Moscow’s hoteliers registered a 13 per cent uplift in food and beverage revenues, despite continued struggles as a result of falling oil prices and economic sanctions. Room rate continued to fall year on year, and despite a slight improvement in volume, average achieved rate slid to €70 (£54).

In Madrid, the top short haul city in Meetings & Incentive Travel’s Trends & Spends survey last year, rates have survived a softening in demand. Here, average room rate increased by 12 per cent, to €138 (£106), despite a three-point occupancy decline in the year on year figures. 


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