Hotel Industry Performance Europe

Hotel Industry in European Region Reports 6.5 Percent RevPAR Growth for Q2 2017

The European hotel industry reported positive year-over-year performance during the second quarter of 2017. Occupancy rose 2.1% to 75.1%, ADR increased 4.4% to €114.10 ($133.37) and RevPAR jumped 6.5% to €85.67 ($100.14).

The hotel industry in Europe reported positive results in the three key performance metrics during the second quarter of 2017, according to data from STR.

Euro constant currency, Q2 2017 vs. Q2 2016

Europe 

  • Occupancy: +2.1% to 75.1%
  • Average daily rate (ADR): +4.4% to EUR114.10  
  • Revenue per available room (RevPAR): +6.5% to EUR85.67

Local currency, Q2 2017 vs. Q2 2016

Germany

  • Occupancy: -0.8% to 73.8%
  • ADR: -0.4% to EUR101.24
  • RevPAR: -1.1% to EUR74.76

Supply growth (+1.1%) played a role in the overall performance decrease for the country, reaching 1% for the first time since Q4 2014. Despite the performance at the national level, Q2 RevPAR growth was strong in Cologne (+14.9%) and Hamburg (+14.5%). Performance in Cologne was due to large events such as Art Cologne (April) and the IIHF Ice Hockey World Championship (May). Hamburg’s levels received a lift ahead of the G20 summit in early July. 

Netherlands

  • Occupancy: +3.9% to 79.5%
  • ADR: +6.0% to EUR129.19
  • RevPAR: +10.1% to EUR102.72

The absolute occupancy level was the highest for a Q2 in the Netherlands since 2006. Performance growth was especially pronounced in April (RevPAR: +14.2%). At the market level, Amsterdam reported double-digit RevPAR growth (+10.5%) for the quarter, due primarily to a 7.5% lift in ADR to EUR164.91. 

United Kingdom

  • Occupancy: +1.0% to 79.6%
  • ADR: +5.2% to GBP94.22
  • RevPAR: +6.3% to GBP75.05

STR analysts note that the devaluation of the pound continues to drive inbound travel and stronger domestic tourism in the U.K. At the market level, London recorded an 8.4% rise in RevPAR to GBP127.33, due primarily to a 6.4% increase in ADR to GBP152.70. The market saw only moderate declines in occupancy following the 3 June terrorist attack at London Bridge. Performance growth soon returned and was boosted around Eid Mubarak as London typically welcomes a high volume of visitors from the Middle East during the holiday. Q2 performance growth for Regional U.K. was lower (RevPAR: +4.8%). 

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