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Istanbul hoteliers struggle with falling rates

Turkey's proximity to refugee crisis and unrest following Ankara terror attack cited in Hotstats monthy review
08/12/2015

Istanbul, where year-on-year room rates fell by 8 per cent in October

The ongoing refugee crisis and continued unrest following the terror attacks in Ankara contributed to a decline in average hotel room rates in Istanbul in October, according to the latest European Chain Hotels Market Review.

HotStats’ monthly report reveals the Turkish city recorded a 4 per cent fall in occupancy and an 8 per cent decline in achieved average room rate. The review notes: “Hoteliers are also contending with the city being a primary focus of the ongoing refugee crisis due to Turkey’s geographical proximity to the Middle East and its role as the main gateway for migrants entering Europe, as well as unrest in the city further to the terror attacks in Ankara at the beginning of the month. The biggest challenge for hoteliers in Istanbul in 2015 has been maintaining the strong growth recorded in achieved average room rate in 2014 (+10.1 per cent).”

Political uncertainty and increased supply in the region has led to a significant dilution of average rate throughout the year, down 17 per cent in January, and 11 per cent in February and June in year-on-year comparisons.

New hotels including the 284-bedroom Hyatt Regency Istanbul, 217-bedroom Hilton Garden Inn Istanbul and 204-bedroom Mercure Istanbul Topkapi have opened in Istanbul this year.

In Moscow, hoteliers are witnessing signs of recovery after a difficult 2014, as an uplift in volume has led to a 9 per cent increase in occupancy, while Amsterdam is on course for a strong finish to 2015, with a 6 per cent increase in room rates for the year to date.


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