During October 2016, Europe's hotel industry reported flat occupancy (-0.4% to 75.3%), while ADR decreased 1.6% to €113.51 ($119.98) and RevPAR fell 2% to €85.47 ($90.32) in year-over-year performance.
LONDON—Hotels in Europe reported negative results in the three key performance metrics when reported in euro constant currency, according to October 2016 data from STR.
Compared with October 2015, Europe reported nearly flat occupancy, down 0.4% to 75.3%. Average daily rate (ADR) dipped 1.6% to EUR113.51. Revenue per available room (RevPAR) fell 2.0% to EUR85.47.
Performance of featured countries for October 2016 (local currency, year-over-year comparisons):
Portugal recorded its highest ADR (EUR94.78) for the month of October since 2003 as well as its sharpest year-over-year increase in ADR (+13.0%) for any October on record. Meanwhile, occupancy increased 3.0% to 77.8%. As a result, RevPAR grew 16.3% to EUR73.72. STR analysts believe that the country’s hotels have benefitted from an increase in arrivals, which could very likely be due to tourists avoiding countries with security concerns such as Turkey or France.
Slovakia posted double-digit RevPAR growth (+21.5% to EUR51.90) as a result of a 7.7% increase in occupancy to 73.7% and a 12.8% lift in ADR to EUR70.42. STR analysts note that the country’s hotels fared slightly better on weekends than weekdays during the month and attribute overall performance to a rise in international tourism.
The United Kingdom saw a 1.8% decline in occupancy to 80.9%. The decrease came in comparison with a record-high occupancy level for an October (2015), when the UK hosted major events like the Rugby World Cup. ADR dropped 2.9% in October 2016 to GBP91.84, and RevPAR dipped 4.7% to GBP74.29. Overall, the UK’s supply continued to grow, up 1.9% in October, while demand was flat.
Performance of featured markets for October 2016 (local currency, year-over-year comparisons):
Budapest, Hungary, posted its highest occupancy level for an October on record with a 15.5% increase to 87.7%. October also brought Budapest’s fourth highest actual ADR for any month since 1996, with an 8.8% rise to HUF27,939.28. As a result, RevPAR grew 25.6% to HUF24,515.18. According to STR analysts, the market has thrived as an affordable and popular destination.
Sofia, Bulgaria, registered an actual occupancy level of 76.3% (+10.1%), the first time since October 2004 that the market achieved an occupancy level higher than 70%. The market also recorded its highest actual ADR (+9.0% to BGN148.48) since November 2009, and RevPAR grew 20.0% to BGN113.26. According to STR analysts, an increase in the number of flights from low-cost airlines such as Ryanair and Wizz Air has significantly helped hotel performance. Occupancy increased 11.4% on weekends, suggesting a large amount of leisure travel.
Zurich, Switzerland, continued to struggle, reporting an ADR of CHF217.24 (-6.0), the lowest actual ADR for an October in the market since 2004. Meanwhile, occupancy grew 0.5% to 74.4% and RevPAR dropped 5.5% to CHF161.53. STR analysts note that Zurich’s performance has been affected by a decline in business travel, as occupancy was down 1.4% during weekdays in October. ADR, on the other hand, declined across both weekdays and weekends.
International Media Contacts:
Media & Communications Coordinator
+44 (0)207 922 1979
Director of Marketing, Research & Analysis
+44 (0)207 922 1965
The above is a news release written by a third party. While HNN’s editorial mission is to produce unique content, it occasionally publishes timely, newsworthy news releases to complement in-house reporting efforts. All news releases are clearly marked as such. For questions and clarification, please contact Editor-in-Chief Stephanie Ricca at firstname.lastname@example.org.