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Hotels in Europe Post Growing Occupancy in December 2013

The last month of 2013 was rather successful for European hotels as the occupancy in the region added 3.6% and estimated 56.5%. Previous year marked the beginning of recovery. Most European economies feel better than before, and this certainly has its impact on hotel industry of the region.

Even though RevPAR is still approximately 4€ below the pre-recession level of 2007, in 2013 Southern Europe posted the growth of RevPAR of 6% and this became one of pleasant surprises of the year.

The most notable current trends of European hotel industry are the following. The UK will have the biggest share of guestrooms that are expected to come online in 2014 – 38%. Due to the Winter Olympic Games in Sochi, the hotel supply in Russia is expected to add 96%. Finally, despite crisis and economic problems, Spain has one of biggest pipelines – over 4000 guestrooms are to be added to the country’s hotel supply.

In December 2013, two markets posted the growth of occupancy of more than 15% - hotels in Vilnius (Lithuania) had their occupancy grow by 15.9% to 49.8% in total, and hotels in Tel Aviv (Israel) increased their occupancy by 15.5% to 62.1%. The largest decrease of occupancy was reached by hotels in Istanbul (Turkey) – 5.9% to 56.7%. Hotels in Copenhagen (Denmark), in their turn, managed to increase their ADR by 19.6% to 113.44€ in total. This is the biggest growth of average daily rate in Europe in December 2013. Finally, the highest growth of RevPAR was reached by Vilnius hotels (+34% to 28.47€ in total) and hotels in Copenhagen (+32% to 68.12€).

30.01.2014

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