Expo boosts Milan hotel occupancy, room rates

Hotels in Milan, Italy, saw a positive turnaround in occupancy during the third and fourth weeks of Expo Milano 2015, according to data from STR Global.

From May 15-28, year-on-year occupancy in Milan increased 7.7 per cent to 75.9 per cent. During the 14-day period, occupancy in the market eclipsed 80 per cent on five separate days and peaked at 89.3 per cent on Wednesday, May 20.

During the first two weeks (May 1-14) of Expo Milano, year-on-year occupancy in the market decreased 8 per cent to 68.4 per cent. Over those 14 days, occupancy surpassed the 80-per cent mark once.

With the next expo to be held in Dubai in 2020, industry players expect occupancy level and room rates to witness an increase as the emirate is expected to witness substantial supply of new rooms as well. Dubai will host Expo from October 20, 2020 to April 10, 2021.

Dubai’s Department of Tourism and Commerce Marketing (DTCM) expects Expo 2020 to attract 20 million visitors and 160,000 hotel rooms.

Commenting on the Milan Expo, Marco Malacrida, STR Global’s area director for Italy, said: “The performance picture has completely changed since the first week of the event. At the beginning of May, unoccupied rooms from concurrent business fairs and UVET-AMEX created a confusing and uncertain scenario.

“Milan, along with the hinterland and surrounding destinations, is recording very good results. After a tough start, the market seems stabilized, and positive Expo visitor feedback should encourage great success for the following months.”

Weeks three and four of Expo Milano also coincided with more significant year-over-year growth in both average daily rate and revenue per available room. From May 15-28, ADR in Milan increased 37.3 per cent to EUR167.75. RevPAR was up 47.8 per cent to EUR127.40.

Using year-over-year comparisons for the first two weeks of the event, ADR increased 36.1 per cent to EUR172.61, and RevPAR rose 25.2 per cent to EUR118.02.

STR Global’s preliminary May 2015 data for Milan indicates increases in ADR (+35.9 per cent) and RevPAR (+35.8 per cent).

According to the official Expo Milano 2015 website, more than 20 million visitors are expected during the six-month universal exhibition, which runs through October.

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