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Positive July Results for Hotels in London and Berlin
The second month of summer was successful for many destinations across Europe, and such important gateway cities as London and Berlin are no exception. The renowned European capitals managed to improve their revenues despite a series of challenges and falling occupancy. The detailed information was provided by STR Global.
Hotels in London showed strong growth in July 2017, even though the occupancy was falling and the decrease estimated 0.9% to 87.5%. The increase of supply is fast, +3.5% for the second month of summer. However, it was softened by the growing demand of 2.5%. Even though the occupancy is falling, the absolute occupancy of London hotels is still impressive. They managed to improve their average daily rate (ADR) by 6.6% to GBP165.42. Consequently, the revenue per available room (RevPAR) was growing as well and added 5.6% to GBP144.76 year-on-year.
In general, the hospitality industry of London maintains its record performance despite obvious challenges caused by recent terror attacks in the capital of the UK. Even though the occupancy is declining, experts do not foresee serious problems for London hotels in coming months. The supply is growing, but the absolute occupancy of June is currently the highest in 2017.
Berlin hotels reached even more incredible results in June 2017. The preliminary data for the month shows that despite nearly flat occupancy hotels in the German capital managed to increase ADR significantly and this helped them reach a fantastic growth of RevPAR of 14%. The city’s hotels benefited greatly from Berlin Fashion Week. The event shifted this year, so instead of June, like in 2016, the fashion week took place on 4-7 July 2017 instead. Berlin hosted one more event that helped hotels boost their revenues – the Lesbian and Gay City Festival. This event took place on 15-16 July.
The year-on-year comparisons for the month of July are the following. The hotel supply was growing just like in London and added +2.2%, but the growth was nearly fully compensated by the increased demand of 2.1%. The resulting occupancy was almost flat – the decline is -0.1% to 82.4% in total. The growth of ADR was the major booster in July - +14.1% to 93.01 euro. Naturally, this helped RevPAR grow and add +14.0% to 76.68 euro.
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