Hotel performances across key European cities have remained resilient despite an unsettled economy and Stockholm looks set to see increased growth, according to the latest analysis from PricewaterhouseCoopers.
The business advisory firm has said that most cities have bounced back well after declines in RevPAR of up to 20 per cent or more in 2008 and 2009 - although many remain below their pre-recession RevPAR peaks. Looking ahead for the remainder of 2011 and 2012, PwC expects Istanbul, Stockholm and Dublin to join some of the top cities such as London, Paris and Amsterdam with strong performances. Stockholm for example, is anticipated to see an 11.3 per cent RevPAR increase.
Robert Milburn, head of hospitality & leisure at PwC, said: “It’s not just about growth rates though. In overall terms, the mega-cities such as London, Paris and Amsterdam will continue to dominate, even if we see Istanbul in 2011 and Stockholm in 2012 topping the league tables for RevPAR growth.”
However, PwC has highlighted that as we move through 2012, double digit RevPAR growth will slow across cities, with only Stockholm achieving more than 10 per cent growth. Interestingly, despite the Olympic Games, London is expected to see RevPAR growth for the year of only 8.3 per cent.
Liz Hall, head of hospitality and leisure research at PwC, said: “In 2012 we anticipate only Stockholm will manage double figure RevPAR growth, reflecting Sweden’s strong recovery from recession, although its economy is expected to slow in 2012. And after a storming 2011, Istanbul looks set to drop out of the top ten in 2012.”