((Automated translation by Reuters, please see disclaimer https://bit.ly/rtrsauto)) by Paolo Laudani
German hotel chains are experiencing booming business thanks to the European Championship, but the economy as a whole is unlikely to benefit from a strong boost, according to the Ifo institute.
“The European Championship in Germany provides fantastic momentum and has a positive impact on our hotels,” Jan Peter van der Ree, regional vice president for Germany at Hyatt HN, told Reuters.
Revenue at the American multinational’s hotels in host cities such as Berlin, Munich and Cologne increased by up to 28% compared to the same period in 2023, with the majority of fans staying not only for the games but also to visit cities, he added.
H-Hotels, a group that runs 50 hotels in its main market of Germany, is seeing a similar increase, its spokesman told Reuters.
The chain, which hosts France and defending champions Italy at its Leipzig hotel, says the average nightly room rate is about a third higher on an annual basis in cities hosting the tournament.
Comments from a spokesperson for Lindner, another hotel group that operates dozens of hotels in Germany, are in line with this, as the company sees its rooms almost sold out in host cities.
“In general, the European Championships have a positive impact on the key figures for June, which are significantly higher than last year,” the spokesperson added in her response to Reuters.
NOT QUITE A FAIRY TALE
The Ifo institute nevertheless said that Germany’s hosting of its first major football championship since the 2006 World Cup was unlikely to provide the hoped-for boost to overall economic consumption.
According to the institute, the impact is not yet visible in the figures from the monthly survey carried out among 9,000 companies. The institute has already indicated to the address that the impact, when it appears in the statistics, will probably be limited.
“There is no major effect of the European championship,” Ifo expert Klaus Wohlrabe told Reuters on Monday about the institute’s investigation. “The German economy still has to wait for its summer fairy tale
While hotels are relatively satisfied with their activity, discontent is most evident in the catering sector.
Although inflation has fallen significantly and real wages have recently increased, consumers appear to be holding back and private demand is still not recovering, he added.