Hotels in the DACH region outperformed serviced apartments in Q3 – revenue growth four times higher,
MUNICH – Hotel and serviced apartment operators in the DACH [Deutschland (D), Austria (A), and Switzerland (CH)] region both managed to post year-over-year revenue growth in Q3 despite the inflationary environment continuing to weigh on performance, property management platform Apaleo can reveal1.
However, their outcomes varied noticeably. RevPAR (revenue per available room) for German, Austrian and Swiss hotels grew four times faster compared with serviced apartments.
Hotels saw RevPAR grow 2.9% between July and September year-on-year to 74.95 euros, compared with a 0.7% increase for serviced apartments to 86.8 euros1, the company’s analysis of 3.7 million bookable nights shows.
The hotel industry has also benefited from more robust occupancy figures, with an annual decline of0.2% marking almost no change on Q3 2022, while serviced apartments have seen occupancy decrease more substantially, falling 4.4% annually.
While ADR (Average Daily Rates) for both categories of accommodation have risen, it hasn’t been enough to produce real terms revenue growth for either sector, with the Eurozone’s annual rate of inflation still coming in at 4.3% in September2.
ADR for hotels rose2.9% in Q3 to 102.63 euros, while serviced apartments witnessed a stronger improvement of4% to 106.20 euros.
Apaleo’s clients operate 1,000 hotels and serviced apartment buildings in 24 countries, accounting for 50,000 rooms.
Martin Reichenbach, CEO of Apaleo said: “The latest statistics from the DACH region are hugely encouraging despite inflation causing all kinds of trouble for economies globally. The key takeaway from the third quarter data is that the performance of hotels and serviced apartments has been remarkably resilient.
“Despite cost-of-living pressures on consumers and higher costs for businesses, demand has been sufficiently high for operators enabling them to raise their prices in the face of increased operating costs. While we will continue to see consolidation in the hotel and serviced apartment sector this will happen at a price premium, which is contrasting the situation in other parts of the hospitality industry, namely the short-term rental sector, which is in a phase of downturn.”
1 Analysis of 3.7 million bookable nights on the Apaleo property management platform July-Sep 2023 vs July-Sep 2022.
2 Trading Economics
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
