Europe hotel performance for July 2016
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 per cent to 76.7 per cent). However, average daily rate was up 3.9 per cent to EUR118.80, and revenue per available room increased 3.5 per cent to EUR91.17.
Performance of featured countries for July 2016 (local currency, year-over-year comparisons):
Germany reported a 0.7 per cent decrease in occupancy to 72.5 per cent, but a 3.0 per cent rise in ADR to EUR92.92 pushed a 2.3 per cent increase in RevPAR to EUR67.38. Transient demand increased 4.9 per cent in July, with notable growth in the Upscale segment (+13.5 per cent).
Poland posted a 3.1 per cent increase in occupancy to 77.3 per cent as well as double-digit growth in ADR (+18.8 per cent to PLN292.90) and RevPAR (+22.5 per cent to PLN226.46). The top performing Polish markets were Poznan, with a 27.3 per cent increase in occupancy, and Krakow, with a 42.0 per cent 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 per cent rise in occupancy to 83.4 per cent along with double-digit increases in ADR (+10.7 per cent to EUR121.89) and RevPAR (+13.9 per cent to EUR101.66). Hotels in the Upper Midscale class posted the strongest growth levels, with a 6.0 per cent increase in occupancy and a 13.5 per cent 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 per cent to GBP137.19). The market recorded nearly flat occupancy (+0.1 per cent to 88.2 per cent) but an increase in ADR (+3.8 per cent 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 per cent) for the month.
Madrid, Spain, experienced a 2.0 per cent drop in occupancy to 65.4 per cent, but a 4.4 per cent rise in ADR to EUR90.06 drove RevPAR up 2.3 per cent to EUR58.89. STR analysts note that Transient demand was up 13.9 per cent, while Group demand declined 16.5 per cent. The Spanish capital also reported a 12.7 per cent increase in Luxury class hotel supply, which dented the Luxury segment’s occupancy (-13.9 per cent).
Prague, Czech Republic, saw a 0.5 per cent dip in occupancy to 88.8 per cent. However, ADR was up 4.8 per cent to CZK2,051.73, and RevPAR rose 4.3 per cent to CZK1,821.87. The overall performance growth was largely due to the Midscale and Economy segment, which experienced a 9.3 per cent increase in RevPAR.
Rome, Italy, reported decreases in occupancy (-2.5 per cent to 80.8 per cent) and RevPAR (-1.0 per cent to EUR126.14). ADR in the market was up 1.5 per cent to EUR156.11.