European Hotels Benefiting from Iceland Volcano Grounding Travelers

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According to London-based STR Global, hotel performance at select European airports showed increases in occupancy and average room rate compared with the same week last year, as a cloud of volcanic ash grounded air travel and stranded travellers throughout the continent.

Revenue per available room (RevPAR) grew in double-digit figures for the week of 11 to 17 April 2010 compared with the same week last year, which included the Easter holidays (10 to 13 April 2009). Gatwick (+40 percent), Amsterdam Schiphol (+69 percent), Heathrow (+70 percent), Stockholm Arlanda (+75 percent), Brussels Airport and its surroundings (+137 percent) and Frankfurt Rhein-Main Airport (+369 percent) all reported growth in local currency during the seven-day period.

Four out of the six airport locations achieved occupancy levels of more than 90 percent for Thursday (15 April). Occupancy declined for the following three nights, as people found alternative travel methods or returned home. Frankfurt's Rhein-Main Airport 's strong performance in the early half of the week was due to the biennial trade fair "Light + Building", which took place 11 to 16 April 2010.

Average daily rates (ADR) showed strong growth, especially in the major hub locations in Frankfurt Rhein-Main, Heathrow and Amsterdam Schiphol.


Please see related Real Estate Channel postings:

• VOLCANO UPDATE No. 2:  Brits Expect to Fly Again Tomorrow but Other European Airports Will be Down Until Thursday, April 19, 2010
  
• VOLCANO UPDATE No. 1 : Iceland Ash Blast Triggers Chaos as More European Airports Forced to Close, April 16, 2010
• SPECIAL REPORT: Massive Volcano Ash Cloud from Iceland Grounds Air Traffic Across UK, April 15, 2010.

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