Europe hotel performance for August 2016
Hotels in Europe recorded mostly negative results in the three key performance metrics when reported in euro constant currency, according to August 2016 data from STR.
Compared with August 2015, Europe reported an occupancy decrease of 1.5 per cent to 75.8 per cent. Average daily rate (ADR) was flat at EUR115.94. Revenue per available room (RevPAR) dipped 1.5 per cent to EUR87.88.
Performance of featured countries for August 2016 (local currency, year-over-year comparisons)
Israel reported decreases across the three metrics: occupancy (-9.5 per cent to 69.9 per cent), ADR (-3.1 per cent to ILS908.84) and RevPAR (-12.2 per cent to ILS635.64). August performance in the country has fluctuated significantly over the past several years due to various political unrest issues, according to STR analysts.
Russia posted a 6.7 per cent increase in occupancy to 70.6 per cent as well as double-digit growth in ADR (+16.5 per cent to RUB4,824.38) and RevPAR (+24.3 per cent to RUB3,408.06). The absolute occupancy level was the highest in the country since September 2011. STR analysts cite a boost in domestic travel, as a result of a weakened Russian Ruble, as a reason behind the performance.
Malta recorded increases in each of the three metrics. Occupancy in the country increased 0.9 per cent to 92.8 per cent; ADR was up 4.3 per cent to EUR155.74; and RevPAR grew 5.3 per cent to EUR144.54. Being a particularly seasonal market, Malta has seen fairly strong performance since May, and hoteliers capitalized on high demand with higher rates throughout the summer months. The August absolute RevPAR level was the highest for any month on record in Malta.
Performance of featured markets for August 2016 (local currency, year-over-year comparisons)
Barcelona, Spain, experienced a 0.8 per cent decrease in occupancy to 86.8 per cent, but a 10.2 per cent rise in ADR to EUR144.58 pushed RevPAR up 9.4 per cent to EUR125.54. With fairly flat occupancy performances, ADR has been the driver of RevPAR in the market since the beginning of the year. Hoteliers maintained their focus on rate in August, leading to the market’s highest absolute RevPAR level for any August on record.
Istanbul, Turkey, reported significant declines across the board: occupancy (-33.6 per cent to 50.4 per cent), ADR (-31.8 per cent to TRY288.06) and RevPAR (-54.7 per cent to TRY145.13). According to STR analysts, terrorism in the country along with the July coup d’état attempt all played a role in the performance declines. At the same time, supply has grown 6.9 per cent year to date in Istanbul, compounding the issues for the local hotel industry.
Milan, Italy, reported double-digit decreases in each metric. Occupancy dropped 23.0 per cent to 48.9 per cent; ADR was down 11.3 per cent to EUR112.32; and RevPAR fell 31.6 per cent to EUR54.88. The significant performance declines were due to comparisons with the Expo Milano months from 2015. Aside from last year, August is typically a slower month for Milan.