STR Global: Europe results for December, '14
STR Global: Europe results for December, '14
27 JANUARY 2015 8:42 AM
Year-end 2014, Europe achieved total demand of 1.1 million rooms sold, one of the highest in the last 10 years, according to STR Global.
LONDON—The European hotel industry posted mixed results in year-over-year metrics when reported in U.S. dollars, Euros and British pounds for December 2014, according to data compiled by STR Global.

Highlights from key market performers for December 2014 include (year-over-year comparisons, all currency in Euros):
  • Budapest, Hungary, reported the largest occupancy increase, rising 21.3 percent to 60.5 percent. Athens, Greece, followed with a 14.5-percent increase to 45.3 percent. 
  • The largest occupancy decrease was reported by Tel Aviv, Israel (-5.0 percent to 59.1 percent).
  • Three markets reported double-digit ADR increases: Manchester, England (+14.6 percent to EUR94.44); Tel Aviv (+14.1 percent to EUR178.71); and London, England (+13.1 percent to EUR179.05).
  • Moscow, Russia, reported the only double-digit ADR decrease, falling 35.0 percent to EUR83.70 during the month.
  • Budapest recorded the highest RevPAR increase during the month (+26.4 percent to EUR38.43). Athens followed with a 19.6-percent increase in RevPAR to EUR39.86.
  • Moscow reported the largest decline in RevPAR (-37.7 percent to EUR46.69).

Year-end results
STR Global also reported year-end 2014 results for the European hotel industry, which recorded mixed results in year-over-year metrics when reported in U.S. dollars, Euros and British pounds.

Europe achieved a RevPAR growth of 5.8 percent during 2014, one of the highest levels of growth since 2011. 2013 was a flat year for Europe with only 0.9 percent growth year-end driven solely by occupancy increases. Both years reported similar demand growth of circa 3.0 percent, which resulted in occupancy growth. In 2014, ADR improvement was finally realised. For comparison, the 2007 annualised ADR was EUR107.02. At year-end 2014, with an achieved ADR of EUR106.09, the gap is closing.
“Europe has yet to reach its ADR pre-recession peaks; however, it is in a much better position today for rate growth in 2015 due to stable supply, increasing demand and higher occupancy levels”, said Elizabeth Winkle, managing director of STR Global. “There are concerns in the economy including widespread deflation, impact of Eurozone quantitative easing and continued declines in the value of the Euro”. 
Year-end 2014, Europe achieved total demand of 1.1 million rooms sold, one of the highest in the last 10 years.
“Since 2011, Europe has surpassed its demand pre-recession peak, and demand growth has continued to go from strength to strength, increasing the number of rooms sold each year”, Winkle said. “Over the last four years, Europe’s international arrivals grew by more than 20 million arrivals each year. Europe commands more than half of global international arrivals, which is forecast to continue into 2015”.
“Northern Europe was the star performer among the four main regions within Europe”, Winkle said. “The region grew in occupancy and ADR, which led to a double-digit RevPAR growth during 2014”.
Winkle said the performance of the hotel sector in the United Kingdom was a major contributor to the overall growth in Northern Europe.
Winkle also pointed to Southern Europe’s hotel industry performance as a major factor in the continent’s stabilisation during 2014. “We’ve seen recovery in Greece, Spain, Portugal and limited growth in Italy”, she said.
Western Europe experienced flat performance, particularly from an ADR perspective, and reported marginal growth in occupancy.
Eastern Europe is the only region to post negative results in all three key performance indicators, and Winkle said the performance was driven by the unrest in the region and the devaluation of the Russian ruble and decreased numbers of Russian outbound travellers into Eastern European markets.
View the global hotel review for the month of December.

Media contacts:
Naureen Ahmed
Manager, Marketing & Analysis
STR Global
+44 (0)207 922 1965
Jeff Higley
VP, Digital Media & Communications
+1 (615) 824-8664 ext. 3318

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