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European Hotel Industry Grows in Q2 2017

News The second quarter of 2017 was a successful one for the hospitality industry of Europe. Hotels across the region managed to improve their main metrics and reach the growth of RevPAR (revenue per available room) of 6.5% compared to the same period of 2016. This has become possible because of the growth in other two important metrics – occupancy and average daily rate.

The statistics for the first half of the year shows that the European hotel industry is in full bloom. Local hotels reached improved results in all the three key metrics. When compared to Q2 2016, the occupancy added 2.1% to 75.1%, and the average daily rate added 4.4% to 114.10 euro. This helped RevPAR add significant 6.5% to 85.67 euro in total.

The metrics in most important regions were the following. In Germany, the occupancy fell down slightly by 0.8% to 73.8% in total. The average daily rate fell a bit as well, -0.4% to 101.24 euro. Naturally, RevPAR declined by 1.1% to 74.76 euro. The weakened performance was primarily caused by the growing hotel supply of 1.1%. Some destinations performed better than others. For example, hotels in Cologne enjoyed the growth of RevPAR of 14.9%, and Hamburg hotels were nearly as much successful, reaching the increase of 14.5%. In both cases, the German cities benefited from large events. Cologne greeted visitors of Art Cologne and IIHF Ice Hockey World Championship in April and May respectively. Hotels in Hamburg benefited from visitors coming to the G20 summit that took place a bit later, at the beginning of July.

Hotels in the Netherlands had more positive results. The occupancy added 3.9% to 79.5%, and the average daily rate grew by 6% to 129.19 euro, helping RevPAR to grow by 10.1% to 102.72 euro. The Q2 2017 performance is absolutely best for the country since 2006. April was a particularly fruitful month. As expected, hotels in Amsterdam posted the highest growth of RevPAR, 10.5%, that was primarily based on the growing daily rate (+7.5%).

Finally, hotels in the United Kingdom reached better results than German hotels but lower than the Netherland ones. The occupancy grew by 1.0% to 79.6% in total, the average daily rate increased by 5.2% to GBP94.22. The growth of RevPAR in Q2 2017 estimated 6.3% to GBP75.05. The devaluation of the pound is the main factor for the growing tourism, both international and domestic. London hotels reached the record RevPAR for the country, +8.4% to GBP127.33. This was mostly achieved because of the growing daily rate. June 3 terrorist attack didn’t cause any significant decline in bookings.


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