Hotel operators say the industry's performance results were driven down by increased competition, noting that 800 new hotel rooms were added to the market over the year.

Hotels in all three Baltic countries registered a decline for the first quarter, but occupancy levels in Riga and Tallinn fell at lower rates of 2 percent and 5 percent, respectively.

Vilnius also saw the steepest decline in the average room rate and revenue in the first quarter, down by almost 6 percent and nearly 21.8 percent, respectively. In Tallinn, the average room rate edged up by 2 percent.

Egle Lizaityte, executive director at the Lithuanian Association of Hotels and Restaurants, says the annual occupancy rate is likely to be lower this year than in 2018.

"We expect that rates will not continue to fall throughout the year, but annual occupancy may be lower than in 2018," she said.

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