DACH: According to property management platform Apaleo, serviced apartment operators in the DACH region witnessed a four per cent improvement on ADRs in Q3 2023.
The average daily rates (ADRs) for serviced apartments increased by four per cent to €106.20 in Q3 this year. This compares to an increase of 2.9 per cent for hotels to €102.63.
While ADRs for both categories of accommodation have risen, it remains below the Eurozone’s annual rate of inflation of 4.3 per cent in September.
Revenue per available room (RevPAR) largely varied across hotels and serviced apartments, with the former reporting 2.9 per cent growth between July and September to €74.95. RevPAR for serviced apartments however increased by 0.7 per cent to €86.81.
Specifically, RevPAR for German, Austrian and Swiss hotels grew four times faster compared with serviced apartments.
The hotel industry also witnessed more stable occupancy figures with an annual decline of 0.2 per cent. Serviced apartment occupancy levels have fallen by 4.4 per cent annually.
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.”
Apaleo’s clients operate 1,000 hotels and serviced apartment buildings in 24 countries, accounting for 50,000 rooms.
