July 11 – Given that Buenos Aires will receive the next edition in 2018, it is appropriate to analyze whether it was positive to receive the event in recent years
The G-20 met in Hamburg (Germany) 7 and 8 July. It is recalled that brings together 19 countries and the EU. Members represent over 80% of global gross domestic product (GDP) and are home to nearly two-thirds of the world population. It was created in 2008, in a context of global financial crisis, to increase international economic cooperation. Since then, members of the G-20 meet annually to discuss diverse issues related to economic and financial cooperation.
STR analyzed the average hotel performance in the previous eight venues. Medium-term methodology seven days represented the hotel business generated during the five days prior to each event as well as the two-day event itself.
“The ADR was the driving factor in the performance of the 11 previous hosts of the G20, but it is interesting to note that increases in the prices of hotel rooms were substantially higher during the last three G20 summits,” said Robert Bauer, senior analyst STR. “Although the hosts markets receive a boost performance in the days before the event, Hamburg has a good chance of seeing an additional benefit due to the upcoming event during the weekend. There was a substantial increase for Brisbane in 2014, for example when the G20 fell Saturday and Sunday (November 15-16). a mediation of those two days, the occupancy rate reached 95% Brisbane (+ 29%), while ADR was AUD460.88 (+172).
Among the eight hosts markets included in the analysis, St. Petersburg, Russia, reported the most notable rise in performance. During the seven-day period host in September 2013, the market recorded an increase of 286% in the ADR, together with an increase of 4% in occupancy, resulting in an increase of 302% per room available (RevPAR).
During his week host in November 2014, Brisbane, Australia, experienced a 121% increase in ADR and an increase of 9% in occupancy, resulting in a 141% growth in RevPAR.
When looking at individual segments, the G20 summit tends to have a greater impact on the business group (bookings of 10 or more rooms at once) than transient business. According to analysts STR Bauer and colleagues, delegates often rent entire property to accommodate its staff and safety equipment.
For example, Toronto (June 2010) increased 361% in occupancy group during its host seven days, while the transient occupancy decreased 57% in the same period.
Author: Julian Belinque Twitter @jbelinque