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Hotels in Europe Post Positive Results of 2016

Last year was mostly positive for the hospitality industry of Europe. According to the 2016 data posted by STR, European hotels managed to improve all main metrics. The overall region’s performance in euro is the following: the occupancy added 0.6% to 70.4% in total, the average daily rate (ADR) gained 1.5% last year to 111.77 euro and revenue per available room (RevPAR) grew by 2.1% to 78.64 euro.

If analyze the results on a country basis, hotels in Poland were among best performing in 2016. They partially benefited from security issues with France and Belgium as that made Polish hotels a good alternative. Several major events like the NATO Summit in Warsaw only improved the metrics. Hotels in Wroclaw had a particularly good year as the city was named a 2016 European Capital of Culture. Overall, the occupancy added 3.7% to 71.3% last year, ADR added 7.7% to PLN272.60, and RevPAR grew by significant 11.6% to PLN194.34.

Hospitality sector of Spain also had a good year. According to STR, in 2016 the country was visited by 70 million international travelers. Once again, hotels in Spain benefited from security concerns in other popular vacation destinations in Europe, the Middle East and Northern Africa. In 2016, the country enjoyed the highest occupancy since 1999. Barcelona hotels managed to increase their revenues by 9.8%, while hotels in Madrid posted the increase of 6.6%. Overall, the countrywide statistics is the following: the occupancy added 3.5% to 74% in total, the increase of ADR estimated 7.8% to 108.11 euro, and RevPAR added 11.6% to 80.01 euro in total.

At the same time, one of the strongest markets in Europe, the UK, had a steady year. The second half of the year was very calm for hotels in the United Kingdom, and strong results of hotels in London in December 2016 were not enough to change the situation. The overall occupancy fell by 0.2% to 77.2% last year, ADR increased by 1.6% to GBP89.21, thus saving RevPAR that showed a modest growth of 1.4% to GBP68.88.

28.01.2017

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