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Hotels in Europe Post Growth in July 2017
The hospitality industry of Europe has another successful month this summer, and July 2017 results only prove the positive dynamics. The year-on-year data shows that local hotels managed to reach the increase in all main three metrics. The data provided by STR indicates that the occupancy was stable and added 2.6% to the level of 78.5% in total. Together with growing occupancy, European hotels managed to increase the average daily rate by 4.3% to 118.3 euro.
The revenue per available room (RevPAR) of hotels of the region added 7.0% to 92.84 euro, which is a good result. Now let’s be detailed about some local markets and compare their June 2017 and June 2016 performances. Hotels in Poland had a nearly flat month despite faster-growing demand that outpaced supply. The country’s capital performed better than the rest of the country, but there is an explanation to that – Warsaw hotels had an exceptionally powerful start of the month because of the International Schools Festival. The event took place at the first six days in July. Consequently, the occupancy of the capital’s hotels was +8.0%, ADR added 1.9%, and RevPAR grew by significant 10.1%.
The performance of the country was the following. The occupancy grew by 1.5% to 78.2% in total, but ADR was falling. The decrease estimated 1.6% to PLN285.62. Naturally, the resulting RevPAR is nearly flat with the decline of 0.1% to PLN223.39.
An important European tourism country, Spain, enjoyed a strong performance despite falling occupancy. The decrease in occupancy of 0.6% to 80.7% didn’t prevent ADR from growing. It managed to add solid 7.7% to 129.34 euro. RevPAR, in its turn, was growing as well and added 7.1% to 104.33 euro. The performance of the country was significantly boosted by hotels in Madrid and Barcelona that increased their ADR by 13.3% and 15.5% respectively.
However, when it comes to record metrics, Turkey is the leader of the month. The year-over-year increase is simply dramatic. The occupancy added 64.9% to 69.2%. ADR grew by 8.9% to TRY330.83. Finally, RevPAR growth is astonishing - +79.5% to TRY229.04. There is an explanation for such increase – a year ago, the coup d’état attempt shrunk tourism of the country. Hotels in Istanbul had a particularly large increase in RevPAR - +132.5% with the occupancy up by 97.0%.
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