Germany Hotel Forecasts Make Tough Reading

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(News Source:  STR Global)

(LONDON, UK) -- Forecasts from the May 2009 Hotel Market Forecast report from STR Global indicate that average daily rate declines during the next 24 months across Germany's major cities will be the main cause of the industry's sluggish performance. Just as positive recent data from Germany's Ifo business climate index on the prospects for the German economy is tempered with on-going fears of further job losses, limited improvements in hotel occupancy during the next two years are offset by the rate declines. See the chart below. Even in those cities such as Hamburg and Munich where there are expectations of modest increases in occupancy of up to 2 percent and 3 percent in 2010, respectively, the forecasted decreases in room rate are 6 to7 percent.

Given the fast changing economic climate, the Hotel Market Forecast from STR Global is updated each month. "It is vital to look regularly at how the local economic conditions are affecting our industry", said James Chappell, managing director of STR Global. "The Hotel Market Forecast gives subscribers essential, regular visibility on what is likely to happen, which is increasingly relevant in these turbulent times".

Hotel Market Forecast Report May 2009 (selected German cities)

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