Luxury hotels resist the crisis although they are not immune to it

They sell around 280 million nights per year, maintaining a healthy demand

Luxury hotels resist the crisis although they are not immune to it, so the 7,400 existing worldwide sold a total of 280 million night per year, according to the STR report published on HotelsNewsNow that indicates that, despite the crisis, the growth rate has remained stable in recent years.

Experts say that although demand slowed in late 2016 and early 2017, it «never fell below an annual rate of 2%,» showing the resistance of high-end consumers and business travelers.

Taking into account that supply and demand is in equilibrium, occupancy begins to stabilize and decrease although slightly. Thus, in the third quarter of this year there was a contraction of 0.3% and the same has happened with prices, since the average income per room was also reduced by 0.3% so far in 2019.

In Europe, hotels registered a price decrease of 2.8%, while in North Africa the income per available room increased by 4.4%; North America (0.4%) and Central America (1%) are the other regions that also increased.

On the other hand, Hong Kong (-16.5%) and Sri Lanka (-18.4%) were clearly affected by the riots and terrorist altercations that have affected their image for both leisure and business travelers.

On the other hand, Hong Kong (-16.5%) and Sri Lanka (-18.4%) were clearly affected by the riots and terrorist altercations that have affected their image for both leisure and business travelers.

The 2018 FIFA World Cup in Russia also had a positive impact on the luxury hotels in that country, which now face falls: Moscow (-38.6%) and St. Petersburg (-9.1%). Also especially noteworthy are the falls in luxury hotels in historically strong luxury markets such as Paris (-12%) and New York (-3.7%).

We hope that with the rise of the world middle class and continued macroeconomic growth, luxury hotels are prepared for a greater demand for rooms than ever, «said senior vice president of information on accommodation at STR, Jan Freitag.