The European hotel industry recorded marginal improvement across the three key performance metrics in January, according to data from STR Global.
Compared with January 2015, Europe reported a 1.4% increase in occupancy to 54.7%, a 1.5% rise in average daily rate to EUR100.52 and a 3.0% lift in revenue per available room to EUR55.03.
Belgium saw a 2.1% dip in occupancy to 55.5%, but a 3.1% rise in ADR to EUR97.34 pushed a 0.9% increase in RevPAR to EUR54.04. The absolute RevPAR level was the highest for a January in Belgium since 2008. The market is showing small signs of recovery following the Paris terrorist attacks in November.
Russia posted a 2.0% increase in occupancy to 42.5% as well as double-digit growth in ADR (+11.0% to RUB5,078.63) and RevPAR (+13.2% to RUB2,158.66). The country’s hotel market has posted eight consecutive months of double-digit revenue growth. According to STR Global analysts, that streak has been helped by the weakness of the Russian Ruble and a subsequent increase in domestic tourism.
Switzerland reported decreases across the three key performance metrics: occupancy (-1.7% to 53.0%), ADR (-3.3% to CHF254.34) and RevPAR (-4.9% to CHF134.84). STR Global analysts note that performance results still reflect the Swiss National Bank’s January 2015 decision to unpeg the Swiss Franc from the Euro.
Turkey experienced a 6.2% decline in occupancy to 47.6%, but double-digit growth in ADR (+10.0% to TRY259.41) drove up RevPAR (+3.2% to TRY123.44) for the month.
Compounding on a traditionally slow month in Turkey, security concerns related to recent terrorist attacks, and the close proximity to the Syrian refugee crisis kept absolute occupancy below 50.0%. Hoteliers raised rates in January with demand in decline.
Budapest, Hungary, posted increases in each of the three key performance metrics: occupancy (+1.8% to 48.8%), ADR (+6.3% to HUF21,745.38) and RevPAR (+8.3% to HUF10,621.66). STR Global analysts labelled the month’s performance as “good” during a traditionally slow season.
Dublin, Ireland, experienced a 7.3% lift in occupancy to 63.7% as well as double-digit growth in ADR (+19.4% to EUR104.36) and RevPAR (+28.0% to EUR66.51). Strong demand experienced in the last two years has greatly affected hotels in Dublin and allowed hoteliers to raise rates.
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