STR: 2016 Europe hotel performance
STR: 2016 Europe hotel performance
24 JANUARY 2017 8:32 AM

The European hotel industry experienced a 0.6% occupancy increase to 70.4% in 2016, as ADR rose 1.5% to €111.77 ($120.22) and RevPAR increased 2.1% to €78.64 ($84.58).

LONDON—Hotels in Europe recorded positive performance for total-year 2016 when reported in euro constant currency, according to data from STR.

Euro constant currency, year-over-year comparisons:


  • Occupancy: +0.6% to 70.4%
  • Average daily rate (ADR): +1.5% to EUR111.77
  • Revenue per available room (RevPAR): +2.1% to EUR78.64

Local currency, year-over-year comparisons:


  • Occupancy: +3.7% to 71.3%
  • ADR: +7.7% to PLN272.60
  • RevPAR: +11.6% to PLN194.34

With security concerns in markets like France and Belgium, Poland benefitted as an alternative destination, according to STR analysts. Additionally, the country’s hotels benefitted from hosting a variety of major events throughout the year, most notably the July NATO Summit in Warsaw, when the market’s RevPAR increased 22.1% for the month. For the full year, the Polish capital recorded a 10.8% increase in RevPAR to PLN227.18. Outside of the capital, Wroclaw was named a 2016 European Capital of Culture and recorded 8.6% growth in occupancy as well as a 13.1% rise in ADR.


  • Occupancy: +3.5% to 74.0%
  • ADR: +7.8% to EUR108.11
  • RevPAR: +11.6% to EUR80.01

STR analysts note that more than 70 million international tourists visited Spain in 2016. The country benefitted as an alternative destination for many as ongoing security concerns have hindered tourism in some western European markets as well as in Northern Africa and the Middle East. Spain’s total-year occupancy level was the highest for the country since 1999.At the market level, Barcelona posted RevPAR growth of 9.8%, while Madrid recorded growth in the metric of 6.6%.

United Kingdom

  • Occupancy: -0.2% to 77.2%
  • ADR: +1.6% to GBP89.21
  • RevPAR: +1.4% to GBP68.88

In the second half of 2016, U.K. hotels posted steady demand growth, but a 2.0% year-over-year increase in supply led to the marginal year-end occupancy decline. London recorded 6.9% growth in occupancy in December, as the pound devaluation has made travel to the destination more affordable for visitors from North America and Europe. For 2017, STR and forecast partner, Tourism Economics, project that “staycations” will play a major role for hotel performance across the U.K., as travelling abroad has become more expensive following the devaluation of the pound.

Download the December 2016 global hotel review here.

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1 Comment

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