In a recent study, “The Leading Hotels of the World,” a luxury hospitality organization representing over 450 hotels worldwide, stated that there was 13.5 percent increase in revenue for its member hotels, May through August 2009, versus January through April 2009. Despite many organizations tentatively reporting that the economy is on the upswing, this is the first study in some time that has made such a dramatic claim to economic improvement.
The majority of the roomnight sales in this study were taken up by Leading Hotels in Europe, with inbound travel to the region increasing by 22 percent between May and August 2009. France showed the largest improvement in sales, followed closely by Spain, Italy, and Greece. The study, however, was careful to note that the Euro’s appreciation during the time periods studied accounted for more than four percent of the overall 13.5 percent revenue production increase in US dollars.
Interestingly, Brazil was one of the top feeder markets for France’s success in the hotel business this year, with the United States coming in at the top spot despite its weakening dollar. Many are citing this as evidence that Brazil’s market is much stronger than many had earlier assumed.
With respect to ADR, The Leading Hotels of the World showed an 8 percent increase from USD 386 to USD 417 in May through August 2009, versus January through April 2009. Fluctuation in foreign exchange rates may have played a role in much of this ADR increase.
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