Currency exchange rates in Europe 'affecting profits'

Profits for the hotel industry in Europe have been affected by currency exchange rates.

The latest STR Global report for Europe revealed that average daily rates (ADRs) in terms of US dollars declined by 8.4 per cent year-over-year in June 2010.

However, when the figures are analysed in euros, there is a 5.4 per cent rise in ADRs.

Elizabeth Randall, managing director of STR Global, commented: "The first half of 2010 showed again a split across Europe in performance.

"Hotels in Western and Northern Europe led the way in ADR improvements (in euro-terms), whilst Southern and Eastern European hotels struggled to convert the occupancy gains into improved ADR."

Germany saw particularly strong levels of interest, with the largest occupancy increase recorded in Munich.

The city saw occupancy rates rise from 26.5 per cent to 77 per cent.

Click here to see how much you can save with HiFX's Foreign Exchange services

Posted by Chris Barber