As we set out to comprehend the performance of our customers - encompassing hotel groups and apartments - spanning 24 countries worldwide, we are excited to launch the first edition of the Apaleo Data Digest.
We dig into important metrics like RevPAR (revenue per available room), occupancy rates, and ADR (average daily rate) to offer hoteliers and the broader sector a clear view of performance and help find ways to enhance in the ever-changing global hospitality scene.
In this edition, we’re closely examining the vibrant DACH region, comparing Q3 year-over-year data in both 2022 and 2023.
In Q3 2023, Apaleo's data highlights how hotel and serviced apartment operators in the DACH region experienced different financial paths despite inflation. Both saw year-over-year revenue growth, with German, Austrian, and Swiss hotels leading with a 2.9% RevPAR increase to €74.95. In contrast, serviced apartments had a modest 0.7% growth, reaching €86.81.
Occupancy rates serve as a noteworthy divergence point between the two segments. Hotels demonstrated a marginal annual decline of 0.2% in the third quarter of 2023 compared to the same period in 2022, showcasing stability. Conversely, serviced apartments faced a more pronounced challenge, with a notable 4.4% annual dip in occupancy. Analysing the intricacies of these metrics provides insights into the distinct operational landscapes of hotels and serviced apartments.
Average Daily Rates (ADR) for both hotels and serviced apartments registered an upward trend in Q3 2023, reflecting an attempt to navigate the inflationary environment. However, the Eurozone's annual inflation rate at 4.3% in September adds a layer of complexity to the apparent progress. Hotels experienced a 2.9% increase in ADR, reaching €102.63, while serviced apartments displayed a more robust improvement with a 4% surge, settling at €106.20. Despite these rate hikes, the challenge lies in converting ADR growth into tangible revenue gains, given the overarching inflationary pressures.
DACH serviced apartments report stronger ADRs than hotels
Martin Reichenbach, our CEO, interprets the Q3 2023 data as a positive reflection of the industry's resilience in the face of global economic uncertainties.
“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.”
Source: Analysis of 3.7 million bookable nights on the Apaleo property management platform July-Sep 2023 vs July-Sep 2022.
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