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Milan rates fall 25 per cent after Expo leaves city

Hotstats review shows year on year hotel rates fell €202 to €151 for month of June 2015
11/08/2016

Pictured: Milan room rates have dropped 25 per cent after hosting Expo last year, which attracted 20 million visitors

Milan hotel rates have fallen almost 25 per cent as the city readjusts to regular occupancy levels after hosting Expo last year, Hotstats has revealed in its latest European chain hotels market review.


The Italian city experienced a 4 per cent year-on-year drop in occupancy for the month of June 2016, falling from from 89.3 per cent in 2015 to 85.5 per cent. It helped lead to a 24.8 per cent decline in average room rates (ARR), which fell €202-€151 (£173-£123).


Meanwhile, year-on-year occupancy levels fell sharply in Paris for the same month, falling 16.7 per cent to 74.2 per cent, leading to a 12 per cent fall in ARR to €379 (£325). This was despite the French capital hosting 12 UEFA European Championships fixtures at the time, while other reports suggest Paris' occupancy was low as 32 per cent for the following month. However, Atout France has recently said the UK remains it's most resilient market while its long haul market has been impacted.


"In the wake of the terrorism attacks in November 2015, Paris hotels have struggled to hold on to plummeting occupancy levels, and the drop in volume has meant that hotels have been unable to effectively yield average room rate during periods of peak volume," authors said.


Further east, Moscow reported a 13 per cent uplift in conferences and banqueting, and 12 per cent increase in food and beverage revenues, for the month of June. That went alongside a 5 per cent rise in occupancy (75-80 per cent), and a 3 per cent increase in ARR to €74 (£63).


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