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Positive Performance of European Hotels in January 2017
Start of the year became optimistic for hotels in Europe as they managed to reach growth of all the three main metrics. In January 2017, hotels across Europe added 5.1% to occupancy, and average daily rate (ADR) grew by 2.4% to 99.25 euro. Naturally, these made RevPAR (revenue per available room) grow as well, resulting in an increase of 7.6% to 56.66 euro.
When analyzed on a country basis, we can see that main markets enjoyed positive shifts. For example, France has had a good start after quite challenging 2016. The occupancy added 9.2% to 55.8% in total in January 2017. Average daily rate estimated 120.43 euro, featuring the growth of 3.1%. The increase of RevPAR reached 12.5% to 67.15 euro. Some submarkets of the country posted a double-digit growth of revenues, namely hotels in Lyon (+44.6%), Paris City Centre (+29.7%) and Toulouse (+12.1%). As the after-effect of terrorist attacks slowly disappears, hotels in France are expected to improve their performance.
Another popular European destination, Italy, posted nearly flat ADR of +0.1% (104.57 euro). As there has been almost no growth of hotel supply in the country in recent years, any growth of demand results in increased occupancy, so the overall prospect is quite positive. In January 2017, occupancy added 11.6% to 51.3%, and RevPAR added 11.7% to 53.67 euro. Hotels in Milan, Florence, Rome and Turin were among the best performers of the month.
January was a very important month for hotels in Portugal as this was the first month since 2008 with occupancy of local hotels exceeding 40.0% (+17.9% to 46.1% in January 2017). Moreover, the increase of ADR of 8.5% to 80.71 euro has made it the highest result since 1997. The growth of RevPAR reached 27.8% to 37.23 euro. Portugal hotels are likely to keep improving their performance due to lowered popularity of Northern Africa and some European destinations.
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