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Fairmas

Hotel-Report

EDITION JUNE 2017

PERFORMANCE ANALYSIS:

MAY 2017 IN SOME MAJOR

GERMAN DESTINATIONS

AND A PREVIEW

ON THE NEXT THREE MONTH

© Fairmas 2017 – Powered by

06|17 Fairmas Hotel-Report

in cooperation with Solutions Dot WG

May 2017 –

a satisfactory MayOcc: 82 %, ADR: 102 €, RevPar: 83 €

As expected, May was on its best behaviour. Not only

did the weather play along and help attract visitors at

short notice; the Ascension (Corpus Christi) weekend

with the German soccer cup final and the Protestant

“Kirchentag” (general synod) also ensured good room

rates. In addition, MICE-sector trade on the weekdays

made sure that May was a very good month.

June – Occ: -1,4%; ADR: -0,3%; RevPar: -1,7%

June contains some of the public holidays that fell in May last year. This is making it hard to place high-value convention trade. But (as

last year proved) the public holidays and long weekends are leading to well-booked hotels and healthy figures that satisfy the hoteliers

because these days can be sold at comparatively high prices. The Berlin Fashion Week falls in July this year, while the very popular ILA

(held on a two-year cycle) will only be luring visitors to the capital again in 2018. The June congresses are concentrated in one short

period. However, compared to last year, it is clear that June will be characterized by leisure travellers.

July – Occ: -3,0%; ADR: +10,3%; RevPar: +7,0%

The first half of July provides optimism for a peak month – apart from occupancy: The Berlin Fashion Week, the ISTH Congress (marked

by strong MICE business), as well as the Classic Open Air at the Gendarmenmarkt, one of the capital’s most beautiful cultural festivals,

will all attract guests to Berlin. The congresses in particular are influencing ADR. The forecasts are positive, despite the start of the

school holiday period in the second half of the month.

August – Occ: -0,8; ADR: +6,4%; RevPar: +5,5%

Just like in July, the occupancy will tend to be negative, however room rates and RevPar are looking up with some good figures. The

Swimming World Cup and the IFA event (beginning on 28 August) are currently ensuring healthy bookings. There remains hope for

tourists arriving and for good weather for the rest of August.

1,6%

3,8%

5,4%

Occ ADR RevPar

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May 2017 – missing trade

fair and some poor figuresOcc: 78 %, ADR: 154 €, RevPar: 120 €

May lived up to its promises! It was a merry month for the

hotel industry in Dusseldorf. The Interpack, which takes

place every three years, ensured huge demand and high

prices. The Interzum was also marked by strong growth and

it also assured overflow from Cologne. At the end of the

month, the Table Tennis World Cup meant that it was “game,

set and match” for May.

June – Occ: -7,9%, ADR: -40,7%, RevPar: -45,3%

Last year, Dusseldorf benefited from the nine days of the DRUPA event. The rest of the month could also be sold well. This year, there

are no such large-scale trade shows or major events. In addition, June is marked by public holidays and long weekends. This means it

will be impossible to compensate for the missing exhibition business; all the key parameters are negative. Only the last week of June is

looking somewhat positive, though it coincides with the weekend when the Tour de France arrives in town.

July – Occ: +1,6%, ADR: +2,9%, RevPar: +4,5%

At the beginning of the month, the Tour de France will ensure a great deal of excitement and it will boost ADR correspondingly. Also of

interest is the CDP trade show, which gets more popular from year to year, taking a lot of fashion business from Berlin to Dusseldorf, a

city that is also benefiting from the later start of school holidays (in July). However, demand is otherwise rather weak.

August – Occ: -0,5%, ADR: +2,2% RevPar: +1,6%

School summer holidays all over the country; little business-sector trade can be expected and experience tells us that August will be

marked by rather short-term leisure-sector bookings.

12,9%

49,9%

69,1%

Occ ADR RevPar





May 2017 – positive figures

despite the shortage of trade

fairs Occ: 72 %, ADR: 111 €, RevPar: 80 €

In 2016, there was only one full business week in May,

which was taken up with trade fair business from the

IFFA trade show. Due to the changed timing of the

public holidays, there are three full business week this

year. While the IMEX and Techtextil are not top trade

fairs, they certainly have led to bookings. Furthermore,

there were still some business days left to be well

filled with corporate trade. The trend was a funda-

mentally positive one.


June is behaving rather like a problem child. On the one hand, it does boast more public holidays, as well as the Texcare trade fair and

the ESL E-sports event at the Commerzbank-Arena. Yet overall demand is still very meagre and room rates are at a correspondingly

low level. Corporate-sector business also appears to be stagnating.

July – Occ: +1,3%; ADR: -0,3%; RevPar: +1,0%

Expectations are rising along with the temperatures. The hoteliers are hoping for Arab guests (end of Ramadan). MICE-sector trade

also appears to be developing positively. However, room rates are also falling; one reason for this could be the fewer high-profile con-

certs this year. Individual bookings are expected at short notice.

August – Occ: +12,9%; ADR: +1,4%; RevPar: +14,4% The trend for August is looking tentatively positive. Movement is particularly noticeable in the group business sector. In addition, the

IAA exhibition booth constructors will also be arriving. They will be starting work in Frankfurt in August.

4,9%

0,8%

6,7%

Occ ADR RevPar





May 2017 – top corporate

business

Occ: 85 %, ADR: 131 €, RevPar: 112 €

Hamburg hoteliers had expected far more corporate-

sector business due to the timing of the public holi-

days. The “Hafengeburtstag” (Harbour Birthday), the

FESPA trade fair (an event held at different venues,

last time in Cologne) and the DDG Congress also had

a positive effect on all three key indicators. The ad-

vance booking figures had been very promising.

June – Occ: -1,7%; ADR: +2,8%; RevPar: +1,0%

The public holidays in June are also complicating the placement of corporate and MICE business in Hamburg. However, room rates

over the Whitsun (Pentecost) weekend were above the levels expected. Nevertheless, the G20 summit, which takes place in early July,

is clearly leading to advance bookings. This will all greatly boost ADR.


July 2017 will be marked by the G20 summit at the beginning of the month, an event that will more than compensate for the lack of

congresses and business-sector visitors. Leisure-sector demand for this summer month also appears to be developing positively. The

negative occupancy rate is explained by the reductions in room quotas for the G20 summit.

August – Occ: -5,1%; ADR: +2,2%; RevPar: -3,0%

As in all major cities, the school holidays will be making themselves noticeable in August. This is because Hamburg is not exactly a

summer holiday destination despite the view of the sea that it offers. In 2016, local hotels benefited from the Internoise Congress and

the later school holidays. Overall, advance bookings are looking rather weak.

5,0%

12,4%

18,1%

Occ ADR RevPar





May 2017 – overflow busi-

ness in the merry month of MayOcc: 79 %, ADR: 126 €, RevPar: 100 €

May was also marked by a number of lucrative events,

not only in Cologne, but also by the Interpack and

Interzum in Dusseldorf and, of course, the Ice Hockey

World Cup. These generated excellent room rates and

booked-out hotel rooms. The public holidays ensured

that tourists turned up and (with the exception of a

few thunderstorms) the weather played ball.

June – Occ: 0,0%; ADR: -14,6%; RevPar: -14,6%

Some of the public holidays that fell in May in 2016 will be in June this year, meaning that there will be fewer business weeks. The

strong overflow business from last year’s DRUPA in Dusseldorf will probably not be repeated. Even the three days of this year’s “Power-

Gen Europe” technology trade show will be unable to change anything.

July – Occ: -2,0%; ADR: +1,7%; RevPar: -0,4%

Some Compared to the last forecast, things have declined slightly in relation to occupancy and RevPar because the booking situation is

still quite restrained for July. The “Kölner Lichter” (Cologne Lights) event and Christopher Street Day (CSD) are still enjoying healthy

demand, even at high room rates. In addition, the security authorities in Cologne have ensured that the general fear of major events

(such as the CSD) in the cathedral city is abating, which should make people more likely to visit the city.

August – Occ: -0,2%; ADR: +1,0%; RevPar: +0,8%

The trend for August remains positive. The ADR and RevPar indicators are slightly above the 2016 figure; only occupancy is a little

below the last year's level, which can be attributed to the summer holidays. The healthy room rates for the Gamescom trade fair give

hope for improved ADR.

16,8%

34,8%

57,6%

Occ ADR RevPar





May 2017 – an

average MayOcc: 80 %, ADR: 126 €, RevPar: 101 €

Last year, two weeks of the Whitsun holidays were in

May, as was the Analytica event, two days of the IFAT

trade show and the ECE Congress. This led to a high

ADR, despite the school holidays. The Whitsun holi-

days fall in June this year, but three trade fairs are

taking place. Unfortunately, the Intersolar was disap-

pointing; it only generated low room rates and thus

caused the drop in ADR for May.


The Whitsun holidays fell in June this year. June 2016 was a full business month and, thanks to a number of trade fairs, it

brought some high-priced business to the city. This year, one day of the Intersolar trade show, two days of the IFAT event and

the ECE congress will be unable to make up for it. The fact that Ramadan ends earlier in 2017 does give grounds for hope. Last

year, business from the Arab countries was very subdued following terrorist attacks and travel warnings.


In principle, July will still be a good business month for the Bavarian state capital, as the school holidays do not begin until Au-

gust this year. This year, much will depend again on how much visitor from Arab countries desire to travel. In addition, it re-

mains to be seen how the city can cope with the increased number of hotels.

August – Occ: +5,8%; ADR: 0,0%; RevPar: +5,7%

August is a full school-holiday month, traditionally marked by leisure-sector trade. In previous years, it has been dominated by

the large number of guests from the Far East and the GCC (Gulf Cooperation Council) states. It now remains to be seen wheth-

er last year’s travel warning will still have an impact. Things can only get better.

6,0%

-0,4%

5,7%

Occ ADR RevPar





The Fairmas Hotel Report is edited by:

Melanie Schlüter, Projekt-Manager

Fairmas Gesellschaft für Marktanalysen mbH

Email: [email protected]

The Fairmas Hotel Report is published by

Fairmas Gesellschaft für Marktanalysen mbH, Sachsendamm 2, 10829 Berlin, Germany

Solutions Dot WG GmbH, Kranzer Strasse 6-7, 14199 Berlin, Germany

Fairmas Gesellschaft für Marktanalysen mbH specializes in market analyses and the development of planning and con-

trolling software for the hotel industry. The company offers its international clientele a hotel benchmarking platform, as

well as various software applications for the fields of budgeting, forecasting, controlling, management reporting and work

process optimization.

Fairmas Gesellschaft für Marktanalysen mbH specializes in market analyses and the development of planning and con-

trolling software for the hotel industry. The company offers its international clientele a hotel benchmarking platform, as

well as various software applications for the fields of budgeting, forecasting, controlling, management reporting and work

process optimization.

Disclaimer

No representation or warranty (express or implied) is given as to the accuracy or complete-ness of the information con-

tained in this publication, and, to the extent permitted by law, Fairmas GmbH / Solutions Dot WG do not accept or as-

sume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in

reliance on the information contained in this publication or for any decision based on it.


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