Hotel Industry Performance Europe

Positive January 2016 Performance Metrics for Hotel Industry in European Region

Compared with January 2015, Europe reported a 1.4% increase in occupancy to 54.7%, a 1.5% rise in average daily rate to EUR100.52 and a 3.0% lift in revenue per available room to EUR55.03.

The European hotel industry recorded positive results in the three key performance metrics when reported in Euro constant currency, according to January 2016 data from STR Global.

Compared with January 2015, Europe reported a 1.4% increase in occupancy to 54.7%, a 1.5% rise in average daily rate to EUR100.52 and a 3.0% lift in revenue per available room to EUR55.03.

Performance of featured countries for January 2016 (local currency, year-over-year comparisons):

Belgium saw a 2.1% dip in occupancy to 55.5%, but a 3.1% rise in ADR to EUR97.34 pushed a 0.9% increase in RevPAR to EUR54.04. The absolute RevPAR level was the highest for a January in Belgium since 2008. The market is showing small signs of recovery following the Paris terrorist attacks in November. 

Russia posted a 2.0% increase in occupancy to 42.5% as well as double-digit growth in ADR (+11.0% to RUB5,078.63) and RevPAR (+13.2% to RUB2,158.66). The country’s hotel market has posted eight consecutive months of double-digit revenue growth. According to STR Global analysts, that streak has been helped by the weakness of the Russian Ruble and a subsequent increase in domestic tourism.  

Switzerland reported decreases across the three key performance metrics: occupancy (-1.7% to 53.0%), ADR (-3.3% to CHF254.34) and RevPAR (-4.9% to CHF134.84). STR Global analysts note that performance results still reflect the Swiss National Bank’s January 2015 decision to unpeg the Swiss Franc from the Euro.

Turkey experienced a 6.2% decline in occupancy to 47.6%, but double-digit growth in ADR (+10.0% to TRY259.41) drove up RevPAR (+3.2% to TRY123.44) for the month. Compounding on a traditionally slow month in Turkey, security concerns related to recent terrorist attacks, and the close proximity to the Syrian refugee crisis kept absolute occupancy below 50.0%. Hoteliers raised rates in January with demand in decline.

Performance of featured markets for January 2016 (local currency, year-over-year comparisons):

Budapest, Hungary, posted increases in each of the three key performance metrics: occupancy (+1.8% to 48.8%), ADR (+6.3% to HUF21,745.38) and RevPAR (+8.3% to HUF10,621.66). STR Global analysts labelled the month’s performance as “good” during a traditionally slow season.  

Dublin, Ireland, experienced a 7.3% lift in occupancy to 63.7% as well as double-digit growth in ADR (+19.4% to EUR104.36) and RevPAR (+28.0% to EUR66.51). Strong demand experienced in the last two years has greatly affected hotels in Dublin and allowed hoteliers to raise rates.

Tel Aviv, Israel, reported increases in occupancy (+2.9% to 58.3%) and RevPAR (+3.2% to ILS466.76). ADR (+0.2% to ILS800.02) in the market remained steady. The overall performance was average for the market’s slow season.

Belgrade, Serbia, saw substantial increases in occupancy (+55.2% to 42.0%) and RevPAR (+31.0% to RSD3,795.31). ADR for the month dropped 15.6% to RSD9,030.26. Significant supply growth (+9.3%) outpaced demand performance (+5.3%) in 2015. Absolute occupancy for January remained in line with recent months but was a significant improvement from a low base in January 2015.

About Constant Currency

Constant Currency methodology eliminates the effects of exchange rate fluctuations when calculating performance figures. STR Global utilizes Constant Currency to present the most accurate performance summary of a region comprising different local currencies. All ADR and RevPAR calculations use 31 January 2016 exchange rates.

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About STR Global:

STR Global provides clients - including hotel operators, developers, financiers, analysts and suppliers to the hotel industry - access to hotel research with regular and custom reports covering Europe, Middle East, Africa, Asia Pacific and South America. STR Global provides a single source of global hotel data covering daily and monthly performance data, forecasts, annual profitability, pipeline and census information. Hotel operators can join the surveys on a complimentary basis and benefit from free industry data. STR Global is part of the STR family of companies and is proudly associated with STR, STR Analytics and Hotel News Now. For more information, please visit www.strglobal.com.



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