Hotel industry with gains of more than 10 percent

For the German hotel business the year 2006 was a very successful one. According to the hotel benchmark data base by Deloitte, in 2006 RevPAR increased by 10.7% to an average of 55 Euros. Thus, for the first time since the year 2000 there was a double digit annual growth rate which is a material increase given that growth was just 1.5% for 2005 as compared to 2004.

All hotel business sectors were benefiting from the Football World Cup in the summer of 2006 as well as from a positive national economic development which all led to an increase in demand from both industry as well as private consumers.

Virtually all cities registered positive and quite often even double digit growth rates in 2006. The city of Dortmund is top in the hotel benchmark ranking due to the World Cup as well as because of an increased demand there on the part of industry which amounted to 23.4%. The growth rate in this respect of the city of Dresden was 19.2% given that many tourists flocked to this city in order to witness the re-inauguration of the Frauenkirche and its historical art collection. Berlin particularly profited from the World Cup, and for the night of the World Cup Final average RevPAR amounted to 283 Euros which is a plus of 19%. At the end of the year 2005 RevPAR had amounted to just 54 Euros in Berlin.

In 2006 Germany registered some of the highest growth rates in Europe. And it seems as if this development is going to continue. The figures for 2007 already show an increase by 6.1%. GERMAN