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Hotels in Eastern Europe Add Value Faster Than the Rest of the Region
While Western Europe hospitality industry has to deal with ongoing complications, hotels in Eastern Europe benefit from increased room value, which reached the growth of fantastic 11% last year. The value of Western European hotels was down 2.1%.
Hotels in Bratislava topped the list with the value of rooms increasing 18.9% year-on-year. Another European capital, Sofia, added 16%. The room value in Bucharest added 14.6%, while Prague and Budapest rooms added 9.9%. Hotels in other large Eastern European cities showed a lower growth of room value, but that fact helped them boost demand, especially during the holiday season in the Eurozone, when hotel rooms become more expensive.
Some locations in Western Europe also showed good results, for example, hotels in Dublin had a good 2015, and in 2016 the increase of hotel value reached 15.5% together with the double-digit RevPAR growth caused mostly by the lack of supply. Barcelona hotels were also among best performers of the region. Strong revenue growth helped hotels in the city increase their value by 13.8% in 2016. However, the result of Western Europe in general is not that positive. The unknown future of the Eurozone, Brexit and terror attacks made hotels in Western Europe lose their value by 2.1%. At the same time, forecasts for the region are not entirely pessimistic as the PIGS countries (Portugal, Italy, Greece, and Spain) may add value, boosting Western European hotels.
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