According to STR, hotels in cities that have hosted the G20 summit have reported a greater impact on average daily rate than occupancy levels.
Ahead of the current G20 in Hamburg, Germany, running through July 8, STR analyzed rolling seven-day averages for eight previous host markets. To point to potential outcomes for Hamburg, analysts excluded three markets (Cannes, France; Los Cabos, Mexico; and Serik, Turkey) to maintain the benchmarking focus on larger hotel markets. The seven-day rolling average methodology accounted for hotel business generated during the five-day lead up to each event as well as the two-day event itself.
“ADR was the driving factor in performance for all 11 previous G20 hosts, but it is interesting to note that spikes in hotel room prices were substantially higher during the past three G20 summits,” Robert Bauer, senior analyst for STR, said in a statement. “While host markets routinely receive a performance boost in the days leading up to the event, Hamburg stands a very good chance to see additional benefit due to the event running into the weekend.”
Brisbane, for example, saw substantial uplift in 2014 when the G20 summit fell on a Saturday and Sunday (November 15-16). Averaging those two days, Brisbane’s occupancy level reached 95 percent (+29 percent), while ADR was $460.88 (+172).
Among the eight host markets included in the analysis, Saint Petersburg, Russia, reported the most notable lift in performance. During the seven-day host period in September 2013, the market posted a 286 percent increase in ADR, which coupled with a 4 percent increase in occupancy, resulted in a 302 percent rise in RevPAR.
During its host week in November 2014, Brisbane, Australia, experienced a 121 percent increase in ADR and a 9 percent rise in occupancy, resulting in 141 percent growth in RevPAR.
When looking at individual segments, the G20 summit typically has a greater impact on group business than transient business. According to Bauer and fellow STR analysts, delegates often rent entire properties to accommodate their staff and security teams. For example, Toronto (June 2010) recorded a 361 percent increase in Group occupancy during its seven-day host period, while Transient occupancy declined 57 percent over the same span.
The 2018 G20 summit will be held in Buenos Aires, while the 2019 summit will be in New Delhi (the first-ever G20 summit to be hosted in India). Yogyakarta, Indonesia, will host in 2020.