Hotel rates across Europe continued to rise in July, driven by countries in Eastern Europe.
According to the latest data from STR, the continent’s average daily rate (ADR) was EUR118.80 (approx. GBP90.33 or US$128.67) last month, compared to EUR114.33 12 months ago. Occupancy levels were almost flat, dipping slightly from 77.0% to 76.7%.
ADR increased in all regions in July, but the sharpest growth was seen in Eastern Europe, were rates jumped 13.1% to EUR68.91. However this remains the lowest actual ADR of any European region. In Western Europe, ADR increased 1.2% to EUR114.09, while rates in Southern & Mediterranean Europe rose 2.7% to EUR136.27.
Two of Europe’s strongest performing countries in July were Poland and Portugal. With occupancy averaging at a strong 77.3%, Poland’s hoteliers were able to drive an 18.8% increase in ADR, to PLN292.90 (approx. EUR68). Portugal meanwhile, achieved a 10.7% jump in ADR, to EUR121.89.
London’s hotel sector rebounded after several weak months, with ADR rising 3.8% to GBP155.47 (approx. EUR181), helped by the hosting of Wimbledon and the biennial Farnborough International Airshow.
For the first seven months of 2016, European hotels were on average 68.9% full and charged an average rate of EUR110.71.