Today, the European Union counts 147.000 hotels and 5.2 million rooms.  This means that the average number of rooms per hotel is  35 – a surprising low figure. Read on to find out how this translates into brand penetration and RevPar performance, with a remarkable position for the Belgian hospitality industry. 

Every year, MKG Hospitality publishes an analysis of hotel supply in Europe. If you work in branded properties, it is sometimes hard to imagine that the majority of European hotels are rather smallish, independent, family owned businesses. Today, only 26% of the hotels belong to a chain. In the USA, chain penetration reaches 70%. No doubt, the economical crisis will accelerate demand with independent owners to join a strong global brand. Several  Directors of Development confirmed that they have a lot more requests to “talk” on their desk than in the previous years.

MKG Hospitality’s RevPar analysis is of course largely based on data coming from branded properties. Still, it gives a good indication of  the situation and the evolution in the various European markets. It may come as a surprise to some that the Belgian market is number four in the European Union on the RevPar ranking. With an average RevPar of 62 €, the Belgian hotel industry outperforms the Netherlands, France and Germany. 

REVPAR RANKING IN 2009

1. UK                           73 €     -12.3%

2. Italy                        69 €     -15.1%

3. Austria                    68 €     -16.5%

4. Belgium                   62 €     -14.8%

5. Netherlands             61 €     -21,0%

Now that the recovery has started, investors in financially healthy positions will be encourage to pursue new possibilities.  This will increase the number of branded properties in Belgium as well as throughout Europe.

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