According to the newest study conducted by PwC, RevPAR (revenue per available room) of main 18 European cities is expected to grow in 2014 and 2015. This concerns all the cities except for one of them.
Hotels in Dublin topped the list with the expected growth of RevPAR of 5.2% in 2014. They are followed by London hotels, where the forecasted growth of RevPAR estimates 3.8%. Other destinations that are told to improve their revenues this and next year are Edinburgh (+3.4%), Berlin (+3.2%), hotels in Frankfurt and Vienna (+2.9% and 2.7% respectively), and Moscow accommodations (+2.6%). In 2015, hotels in London will top the list with the growth of revenue of 5.2%. They will be followed by hotels in Dublin, Lisbon, Edinburgh, Prague, Zurich, Moscow and Frankfurt.
According to experts in PwC, the growth of RevPAR will be reached thanks to the increase of ADR (average daily rate) and occupancy. The trend will concern even such popular destinations as London, where hotel supply is expected to grow within next several years. In London, the occupancy will remain on its usual high level, while many destinations will improve their usual results. For example, hotels in Milan and Lisbon will see huge increase of occupancy. In long-term prospect, however, hotels in top European destinations may face declines because of the increased supply. Such cities as Berlin, Amsterdam, Moscow, Zurich, Edinburgh and Vienna have significant hotel pipelines.
In 2014, hotels in Edinburgh, London and Paris will have occupancy above 80%, and expected occupancy of hotels in Dublin is close to 80%. When it comes to the average daily rate, hotels in Switzerland traditionally occupy the leading position. Geneva remains the most expensive city with an average of €230 per night. The city is followed by hotels in Zurich (€196), London accommodations (€227), and hotels in Paris (€155).