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European Hotel Industry Keeps Growing in November 2019
The last autumn month brought positive results for the hospitality industry of Europe. All the key performance metrics were growing, making hotels across the region more optimistic about their future. When compared to November 2018, the occupancy added 1.5% to 72.2%. The average daily rate (ADR) was growing as well, adding 1.9% to 106.71 euro. With occupancy and room rates increasing, the revenue for available room (RevPAR) was in the green zone with the result of +3.4% to 77.08 euro.
As usual, some markets performed better than others. For example, hotels in Baku, Azerbaijan, saw a fantastic increase in occupancy in November 2019 – 21.4% up to 54.9%. ADR was, however, negative and decreased by 6.2% to AZN167.04. That being said, this couldn’t offset the positive impact of the growing occupancy, and so Baku hotels increased their RevPAR by 13.8% to AZN91.71.
November 2019 became an important milestone for the hospitality industry of Baku because the absolute occupancy level was the highest since 2008 for this month. There are several reasons for this success. The capital was hosting a number of large events in November, and they attracted many guests to the city. On November 6-8, the CASPINDEXPO Industry Exhibition took place in Baku, followed by the United World Wrestling World Championship (8-9 November). It would be a mistake not to mention the Azerbaijan vs. Wales UEFA Euro 2020 Qualifier match on November 16.
One of the most important gateway cities in Europe, London, posted moderate growth in November 2019. London hotels couldn’t maintain their incredibly high occupancy, and so it dipped a little bit, losing 0.4% to 85.5%. This is a natural process because the hotel supply in the UK’s capital is growing quickly and outperforms the demand for hotel rooms. In November 2019, the demand grew by 1.8%, and the supply added 2.1%.
However, ADR added 1.6% to GBP158.94, and RevPAR added 1.3% to GBP136.43. These two metrics are the highest levels for any November on record, so it is safe to say that London hotels and the city’s hospitality industry look healthy and still have room for growth. The city hosted the CBI Annual Conference on November 18, and this certainly helped to reach the record performance. The revenues surged by 20.2% during the event, helping hotels in London to reach this important milestone.
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