2500 new rooms bring movement to the Zurich hotel market.
The cut-throat competition in Zurich's hotel industry is intensifying because new suppliers such as Motel One are pushing their way onto the market. A study predicts turbulent times.
Next week, the German budget chain Motel One will open its second hotel in Zurich at the old Post Selnau. It will be the largest in the city with around 400 rooms and will stir up the market. Since April, the 25hours Hotel on Europaallee has been offering 170 rooms in the mid-price segment. In 2018, the German chain a-ja wants to open a hotel with wellness facilities in Altstetten, and two hotels will be built in the new business center "The Circle" at the airport by 2019. In three years, according to a study published yesterday by Credit Suisse, 2500 new hotel rooms will be created. This corresponds to an increase of more than 17 percent.
Hotels need good ideas
Can the market cope with this? The study has a clear answer to this question: no. Author Brice Hoffer, Real Estate Research Analyst at CS, predicts a tightening of the predatory competition. Although the city of Zurich is registering an increase in overnight stays - by 2016 it was 1.4 percent. However, according to the study, there will still be overcapacities.
The Zurich Hotelier-Verein also agrees. An oversupply is created,"says Managing Director Marianne Dobler-Müller. At the same time, she says:"The new hotels will have to establish themselves."
The opinion of the new provider Motel One on the Zurich market remains open for the time being. The company does not wish to comment on this matter so shortly before the opening. The CS study, however, apparently assumes that it will not necessarily be the new hotels, but rather the existing hotels that will experience difficulties.
The struggle for displacement will not affect everyone equally, they say. However, companies that do not respond to the needs of their customers, offer competitive prices and rely on outdated concepts are likely to be challenged. Marianne Dobler-Müller, on the other hand, says:"Zurich's hotel industry is well positioned and close to the customer's needs.
The location is also decisive for the hotels. Last year's occupancy figures show this: 86 percent of the companies in district 6 were well documented, close to the main station. Hotels near the airport were also well utilized: Kloten recorded a rate of 87 percent, Opfikon 71 percent.
Competition from Airbnb
In the city of Zurich, on the other hand, hotels are increasingly being confronted with competition from private individuals who offer a room or the entire apartment via the Airbnb Internet service. According to study author Hoffer, the Airbnb offer concentrates on the city centre. In certain areas, the presence of the accommodation advertised by Airbnb can reach up to 75 percent of the usual hotel offer,"it goes on to say.