LONDON—The European hotel industry posted mixed results in year-over-year metrics when reported in U.S. dollars, euros and British pounds for August 2012, according to data compiled by STR Global.
“European hotels reported a bounce in average room rates this August as the Olympics took full effect in London and the U.K., and German cities hosted major trade fairs”, said Elizabeth Randall Winkle, managing director of STR Global. “Because the majority of the games took place during August, the event boosted average room rates in London, with the city reporting a 43.7 percent ADR increase in local currency. Further, average room rates in August 2011 were depressed with a 1-percent decline, leading to the bounce back. Occupancy managed to increase 0.5 percent compared to last year, halting a period of three months with declines. However, it remains a factor to watch in the coming months, especially in conjunction with the economic developments in Europe”.
Highlights from key market performers for August 2012 include (year-over-year comparisons, all currency in euros):
Istanbul, Turkey, reported the largest occupancy increase, rising 23.9 percent to 65.2 percent, followed by Bratislava, Slovakia, with a 15.7-percent increase to 55.5 percent.
Madrid, Spain, fell 16.3 percent in occupancy to 47.6 percent, reporting the only double-digit occupancy decrease for the month.
London, United Kingdom, increased 60.6 percent in ADR to EUR199.27, achieving the largest increase in that metric. Geneva, Switzerland, followed with a 19.2-percent increase to EUR260.61.
Madrid (-7.8 percent to EUR67.98) and Zurich, Switzerland (-7.6 percent to EUR174.20), posted the largest ADR decreases for the month.
Five markets experienced RevPAR increases of 20 percent or more: London (+61.2 percent to EUR163.52); Istanbul (+39.8 percent to EUR99.76); Geneva (+32.8 percent to EUR151.77); Berlin, Germany (+20.5 percent to EUR60.62); and Reykjavik, Iceland (+20.0 percent to EUR117.37).
Madrid fell 22.9 percent in RevPAR to EUR32.36, posting the largest decrease in that metric.
View the global hotel review for the month of August.
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