European hotels market enters crisis mode
During the first two months of 2020, year-to-date figures for European hotels showed positive growth of revenue per available room, thanks to an increase of the average daily rate and despite a minor decline in occupancy, according to Cushman & Wakefield. After this relatively good start to the year, however, Europe was hit by the COVID-19 crisis, which has seen occupancy levels drop rapidly in the first half of March. While initially, some markets were less affected than others, most hotels are now closed across the whole Europe, except for some airport locations. Some hotels in Europe are being converted into hospitals, quarantine facilities, shelters, temporary logistic spaces or are even serving as temporary work locations with rooms being offered as private offices to those who struggle to work from home. Hotel restaurants are being used to produce food for delivery and staff are being re-deployed with delivery companies or to other sectors, according to Cushman & Wakefield.