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Hotels in Europe saw flat occupancy but higher revenues

Staff Writer |
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.

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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.

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.

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.

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