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Strong Results of European Hotel Industry in January 2018
The beginning of this year was quite solid for the hotel industry of the region. Some destinations, such as Greece, managed to post amazing results that are on par with their pre-recession levels. That is particularly true about such countries as Greece, the United Kingdom, and Romania. Let’s have a more detailed look at the main metrics of European hotels.
Occupancy added 3.4% to 58.6% in January 2018 compared to January 2017. The average daily rate (ADR) was growing as well and added 2.2% to 57.39 euro in total. The increase in revenue per available room (RevPAR) estimated 5.7% to 57.39 in total. As we can see, all main metrics were growing, so hotels managed to reach positive results at the beginning of the year.
That said, there were three record-breaking countries in January 2018. Let’s have a more detailed look at them. The occupancy of hotels in Greece fell down by 2.7% to 49.4%. ADR was growing – fabulous +8.6% to 93.81 euro. Consequently, RevPAR posted a growth of 5.6% in January 2018. Despite the falling demand, January was a strong month for the country as ADR has reached one of the highest results since 2009. Hotels in Athens particularly benefited from the upward trend. One of the top destinations of the country in 2017, the capital of Greece enjoyed a fantastic jump of 13.5% in RevPAR. Such a fabulous growth was mostly geared up by an increase in ADR of 10.4%.
Romania is also one of the best-performing destinations in Europe due to constantly growing demand. January 2018 was no exception. The occupancy grew by 3.5% to 51.4% in total, reaching the highest level ever since January 2007. ADR was growing as well, reaching the result of RON314.47 (+7.5%). Finally, RevPAR added another 11.3% to RON161.79. There are several reasons for growing metrics of Romanian hotels. The country’s hotel supply is quite stable with no big players coming in large numbers. Moreover, many Central and Eastern Europe countries are considered relatively safe, with growing economies, and stable politics. This makes them ideal candidates for long-term planning various conferences, business meetings, and corporate events.
The last but not the least, the United Kingdom had a particularly strong January 2018. The absolute value of all the three main metrics was the highest ever reached by the UK in January! The occupancy added 0.6% to 63.9% in total, the average room rate of GBP81.14 was also growing (+1.0%), and RevPAR was, naturally, growing as well (+1.6% to GBP51.88). The country had growing occupancy despite its decrease in London hotels by 1.1%. Many experts connect such growth of both domestic and international tourism with the Brexit. That effect is already starting to fade, so the year-on-year growth may slow down or almost disappear.
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