Europe hotel performance for Q1 2016
The European hotel industry recorded positive results in the three key performance metrics when reported in euro constant currency, according to Q1 2016 data from STR.
Compared with Q1 2015, Europe reported a 0.8 per cent increase in occupancy to 61.1 per cent, a 2.3 per cent rise in average daily rate to EUR102.98 and a 3.1 per cent lift in revenue per available room to EUR62.94.
Performance of featured countries for Q1 2016 (local currency, year-over-year comparisons):
Croatia posted double-digit increases across the three key performance metrics: occupancy (+14.9 per cent to 26.6 per cent), ADR (+16.0 per cent to HRK534.14) and RevPAR (+33.3 per cent to HRK142.12). The first quarter is a traditionally slow season in Croatia. In comparison to a low base from 2015, the country’s performance was significantly driven by March, with RevPAR at +55.4 per cent (HRK173.39).
Germany recorded modest growth in the three key performance indicators: occupancy (+0.8 per cent to 62.4 per cent), ADR (+2.2 per cent to EUR99.78) and RevPAR (+2.9 per cent to EUR62.22). Germany’s March ADR (EUR101.58) and RevPAR (EUR67.96) were the highest on record for the month. The country’s March occupancy (66.9 per cent) was the second-highest level STR has benchmarked for the month.
Ireland saw a 4.8 per cent rise in occupancy to 66.4 per cent as well as double-digit growth in ADR (+17.6 per cent to EUR107.84) and RevPAR (+23.2 per cent to EUR71.63). The quarterly performance follows recent trends in the country with March being the 16th consecutive month with a year-over-year RevPAR increase. The absolute level of EUR86.67 was a March record for the country, helped by a busy week that included St. Patrick’s Day and the RBS Six Nations rugby final weekend. STR analysts point to continuous demand growth and stagnant supply as the reason behind the RevPAR trend in Ireland. Demand has been driven by Tourism Ireland’s efforts to build on overseas tourism, as reflected by a record 25 million passengers travelling through Dublin Airport in 2015.
Portugal reported increases in occupancy (+6.2 per cent to 49.7 per cent) and ADR (+8.4 per cent to EUR74.39), leading to a double-digit lift in RevPAR (+15.1 per cent to EUR36.98). Q1 is a traditionally slow season for Portugal, but the month’s 62.4 per cent occupancy level and ADR of EUR75.99 were the highest for March since 2008. STR analysts believe that Mediterranean visitors have diverted to countries like Portugal which are viewed as more secure destinations.
Performance of featured markets for Q1 2016 (local currency, year-over-year comparisons):
Amsterdam, Netherlands, experienced a 3.9 per cent increase in occupancy to 68.5 per cent as well as double-digit growth in ADR (+12.3 per cent to EUR122.92) and RevPAR (+16.7 per cent to EUR84.15). STR analysts labelled Amsterdam as a standout in March with RevPAR growth at +25.8. Occupancy for the month eclipsed 90.0 per cent on Friday and Saturday, 25-26 March, during the Food Festival Amsterdam. ADR and RevPAR also reached their highest levels for the month on those two days.
Brussels, Belgium, saw decreases in occupancy (-9.8 per cent to 57.4 per cent) and RevPAR (-8.1 per cent to EUR65.06). ADR was up 1.9 per cent to EUR113.27. Performance in the market was significantly affected by the terror attacks of 22 March, as occupancy dropped from 81.8 per cent on the day before the 22nd to a low of 19.5 per cent on the 28th. Occupancy for the month was down 19.6 per cent to 57.7 per cent.
Geneva, Switzerland, reported decreases across the board: occupancy (-3.1 per cent to 63.5 per cent), ADR (-1.1 per cent to CHF300.01), RevPAR (-4.2 per cent to CHF190.52). According to STR analysts, Geneva saw a positive impact from the Geneva International Motor Show (3-13 March), but the event wasn’t enough to counter a slow time around Easter as many left the market to travel elsewhere. In addition, Geneva likely saw some impact from the closing of the Brussels airport.
Milan, Italy, experienced slight decreases in occupancy (-2.0 per cent to 59.8 per cent) and RevPAR (-0.6 per cent to EUR79.18). ADR was up 1.4 per cent to EUR132.45. Performance in the market has slowed since the end of the fourth quarter of 2015, but in general, Milan seems less affected by the Brussels attacks when compared with other European markets.
Europe performance for March 2016 (Euro constant currency, year-over-year comparisons):
Compared with March 2015, Europe reported a 0.3 per cent increase in occupancy to 66.2 per cent, a 1.9 per cent rise in average daily rate to EUR105.28 and a 2.2 per cent lift in revenue per available room to EUR69.71.