Although hotels in Athens while occupancy in July almost reached 2019 levels, they recorded an underperformance in the first seven months of the year.
Data from GBR Consulting released on Wednesday Athens-Attica and Argasaron Hotel Association (EXAAA)shows that for the first time after two years of Corona virus infection covid-19 Due to the pandemic, hotels in the Greek capital showed an “excellent” positive average occupancy rate of 89.3 percent in July, almost reaching the 2019 level for the same month (89.8 percent).
However, the average occupancy of Athens hotels in January-July decreased by 17.8 percent (from -21.7 percent in January-June).
“The first seven months of 2022, compared to the corresponding period of 2019, unfortunately show a negative figure in terms of average occupancy in the Greek capital,” the association said.
ADR is growing but still low compared to competition
In more detail, the average daily rate (ADR) increased in Athens 20.6 percent to €117.68 per night for the first seven months of 2022 compared to the same period last year.
“But if you look at what is happening at the European level, ADR growth in Athens remains the lowest in relation to rival cities,” the association notes.
The same goes for revenue per available room (RevPar), where the positive change for Athens does not exceed 65.9 percent while other cities recorded increases from 144.1 percent (Istanbul) to 530.5 percent (Amsterdam) compared to the corresponding period in 2021.
In January-July RevPar was decreased by 8.5 percent compared to the corresponding period of 2019.
The association goes on to add that it expects numbers to lag in August, September and October, months when hotels in Athens “traditionally” underperform.
Seasonality, unfair competition hit Athens hotels hard
The association emphasizes that although Athens is a year-round holiday destination, signs of seasonality are obvious with the better performance of urban units limited to only six to seven months of the year, resulting in the hoteliers of units open all 12 months unable to cover operating needs and costs.
The association adds that Athens hotels face challenges not only from European and international competition, but also from oversupply of beds and unfair competition mainly due to the wealth of births short term rental and unlicensed units.
“Thus, we expect the state, local authorities and relevant ministries to take measures to protect the uninterrupted operation of hotels and the tourism activities of Athens,” the association concludes.
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