European Cities Hotel Forecast 2013: Thriving or surviving

PwC is delighted to present our European cities hotel forecast for 2013. This second edition features 19 of Europe’s most important gateway cities. For each city, we provide a forecast of occupancy, ADR and RevPAR, as well as the economic outlook and our analysis of the opportunities driving tourism and investment in 2013. All the cities featured are capitals of culture, finance and commerce and together they account for over 650,000 rooms and welcome more than 85 million international arrivals each year.

Success in 2013 is not just about growth

In absolute trading terms, the projected leader board for 2013 is largely unchanged from last year, with Paris, London, and Edinburgh still the fullest cities – although the order has changed and London is expected to be in third place in 2013 compared to first place in 2012.

Thrivers or survivors?

Overall, RevPAR growth is expected to slow in 2013, held back by strong economic headwinds across the eurozone. But there will be thrivers; cities expected to show robust RevPAR growth include Paris, St Petersburg and Edinburgh and more modest increases should be seen in Frankfurt, Berlin, Dublin and Moscow.

Adapting to the new economic normal

Our analysis also shows us that return to a steady state of economic growth in Europe is unlikely in the near future. This being so hotel sectors must learn to adjust to the new economic climate, while at the same time responding to the new trends and challenges that the industry faces.

As part of our research we asked hotel industry leaders about the issues, trends and opportunities that keep them awake at night. What’s at the top of their lists? Changing consumer preferences, the impact of online aggregators on price and distribution; and gaining market share in a slow growth economy where retaining existing customers becomes a ‘must-have’ and the battle for visitors from emerging markets intensifies.

With fewer customers to go round in 2013, loyalty and reward programmes could make the difference to the bottom line.

Data highlights


Which cities are best
placed to grow in 2013?
The story in euros

Which cities are best
placed to grow in 2013?
The story in local
currency

The fullest in 2013:
Paris, Edinburgh and
London all perform
strongly

The most expensive
in 2013: Paris and
Geneva stand out
 

International Contacts

Austria

Wolfgang Vejdovsky
Director
+43 1 501 881 150
Email

Belgium

Serge Loumaye
Partner
+32 2 7109791
Email

Czech Republic

Tomas Basta
Partner
+420 251 152 087
M: +420 602 265 825
Email


Jan Musil
Senior Manager
+420 251 152 160
Email

France

Anne-Claire Ferrie
Partner
+33 1 56 57 12 42
Email


Geoffroy Schmitt
Partner
+ 33 1 56 57 84 52
Email

Germany

Dirk Hennig
Partner
+49 30 2636-1166
Email


Markus Hauk
Manager
+49 69 9585 5910
Email

Ireland

Ann O’Connell
Partner
+353 (0)1 792 8512
Email


Jennifer Gillen
Senior Manager
+353 (1)792 8856
Email

Italy

Nicola Anzivino
Partner
+39 348 8519 842
Email


Fabrizio Franco de Belvis
Executive Director
+39 348 5288 714
Email


Caterina Moliterno
Senior Manager
+39 347 8507 626
Email

Netherlands

Bart Kruijssen
Partner
+31 88 792 6037
Email

Portugal

Cesar Goncalves
Partner
+351 213 599 436
Email


Ricardo Sousa Valles
Senior Manager
+351 213 599 309
Email

Russia

Robert Gruman
Partner
+7 495 232 5725
Email


Oleg Malyshev
Partner
+7 495 967 6138
Email


Lyubov Solonina
Senior Manager
+7 495 967 6096
Email

Spain

Álvaro Klecker Alonso De Celada
Partner
+34 915 684 244
Email


David Samu Villaverde
Partner
+34 915 685474
Email

Switzerland

Nicolas Mayer
Director
+41 58 792 2191
Email

UK

Robert Milburn
Hospitality & Leisure Leader
+44 020 7212 4784
Email


Liz Hall
Head of Hospitality & Leisure Research
+44 020 7213 4995
Email


Sam Ward
Hotels Transactions specialist
+44 020 7212 2974
Email


Richard Snook
Economist
+44 020 7212 1195
Email


Bruce Cartwright
Partner
+44 013 1260 4087
Email