Hotel Industry Performance Europe

Mainly Positive July 2016 Performance Metrics for Hotel Industry in European Region

Compared with July 2015, Europe reported nearly flat occupancy (-0.4% to 76.7%). However, average daily rate was up 3.9% to EUR118.80, and revenue per available room increased 3.5% to EUR91.17.

Hotels in Europe recorded mostly positive results in the three key performance metrics when reported in euro constant currency, according to July 2016 data from STR.

Compared with July 2015, Europe reported nearly flat occupancy (-0.4% to 76.7%). However, average daily rate was up 3.9% to EUR118.80, and revenue per available room increased 3.5% to EUR91.17.

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

Germany reported a 0.7% decrease in occupancy to 72.5%, but a 3.0% rise in ADR to EUR92.92 pushed a 2.3% increase in RevPAR to EUR67.38. Transient demand increased 4.9% in July, with notable growth in the Upscale segment (+13.5%).

Poland posted a 3.1% increase in occupancy to 77.3% as well as double-digit growth in ADR (+18.8% to PLN292.90) and RevPAR (+22.5% to PLN226.46). The top performing Polish markets were Poznan, with a 27.3% increase in occupancy, and Krakow, with a 42.0% increase in ADR. Poznan hosted the 24th World Congress of Political Science on 23-28 July. Krakow hosted World Youth Day on 25-31 July.

Portugal recorded a 2.8% rise in occupancy to 83.4% along with double-digit increases in ADR (+10.7% to EUR121.89) and RevPAR (+13.9% to EUR101.66). Hotels in the Upper Midscale class posted the strongest growth levels, with a 6.0% increase in occupancy and a 13.5% rise in ADR.

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

London, England, reported its first month of the year with noticeable RevPAR growth (+4.0% to GBP137.19). The market recorded nearly flat occupancy (+0.1% to 88.2%) but an increase in ADR (+3.8% to GBP155.47) helped by the 2016 Wimbledon Championships (27 June to 10 July) and the biennial Farnborough International Airshow (11-17 July). The Luxury class was the top performing segment (RevPAR +8.1%) for the month.

Madrid, Spain, experienced a 2.0% drop in occupancy to 65.4%, but a 4.4% rise in ADR to EUR90.06 drove RevPAR up 2.3% to EUR58.89. STR analysts note that Transient demand was up 13.9%, while Group demand declined 16.5%. The Spanish capital also reported a 12.7% increase in Luxury class hotel supply, which dented the Luxury segment’s occupancy (-13.9%).

Prague, Czech Republic, saw a 0.5% dip in occupancy to 88.8%. However, ADR was up 4.8% to CZK2,051.73, and RevPAR rose 4.3% to CZK1,821.87. The overall performance growth was largely due to the Midscale and Economy segment, which experienced a 9.3% increase in RevPAR.  

Rome, Italy, reported decreases in occupancy (-2.5% to 80.8%) and RevPAR (-1.0% to EUR126.14). ADR in the market was up 1.5% to EUR156.11. 

About Constant Currency

Constant Currency methodology eliminates the effects of exchange rate fluctuations when calculating performance figures. STR 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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