STR Global: European hotel occupancy up by 2.3% in 2015

The European hotel industry recorded positive year-end 2015 results in the three key performance metrics when reported in Euro constant currency, according to data from STR Global.

Compared with 2014, Europe reported a 2.3% increase in occupancy to 70.1%, a 4.6% increase in average daily rate to EUR112.16 and a 7.1% increase in revenue per available room to EUR78.68.

Performance of featured countries for year-end 2015 (local currency, year-over-year comparisons):

Key performance metrics

Germany reported increases across the three key performance metrics: occupancy (+2.2% to 69.9%), ADR (+4.3% to EUR99.46) and RevPAR (+6.5% to EUR69.52). Demand growth (+2.8%) in the country outpaced supply growth (+0.6%) for the year, and occupancy and RevPAR each increased in year-over-year comparisons in 11 of 12 months. 

Hungary recorded increases in each of the three key performance indicators. Occupancy increased 5.6% to 71.5%; ADR was up 9.1% to HUF21,431.05; and RevPAR increased 15.3% to HUF15,325.37. Demand growth (+5.5%) significantly outweighed supply growth (-0.1%) for the year. In addition, the third quarter of 2015 produced a 21.3% increase in RevPAR. 

Transient segment

Portugal posted a 5.7% increase in occupancy to 66.7%, a 9.9% rise in ADR to EUR89.63 and a 16.2% increase in RevPAR to EUR59.75. December was a particularly strong month in the country with RevPAR up 28.2% in year-over-year comparisons. Overall in 2015, Portugal’s demand growth (+6.2%) was significant, while supply growth (+0.4%) remained almost flat. STR Global analysts note that demand was driven primarily by the transient segment, and regions outside of key cities such as Porto and Lisbon reaped the benefits.

Switzerland reported decreases in the three key performance measurements: occupancy (-0.4% to 65.0%), ADR (-2.5% to CHF217.41) and RevPAR (-2.9% to CHF141.39). STR Global analysts describe 2015 as a turbulent year in Switzerland due to the sudden unpegging of the Swiss Franc from the Euro. In addition, a warmer winter was reflected in seasonal hotel performance with a fourth-quarter demand decline of 1.4%.

Performance of featured markets for year-end 2015

Brussels, Belgium, saw a 1.5% decrease in occupancy to 69.8% but increases in both ADR (+3.7% to EUR109.61) and RevPAR (+2.1% to EUR76.54). The year’s overall occupancy level was affected by the terrorist attacks in Paris, France, and the subsequent security lockdown on Brussels. Occupancy dropped 19.3% in November and 26.5% in December. ADR for December also fell 2.0% after six consecutive months of year-over-year increases.

Budapest, Hungary, posted increases in each of the three key performance metrics: occupancy (+6.0% to 73.2%), ADR (+8.8% to HUF22,793.73) and RevPAR (+15.3% to HUF16,676.94).

Decreases in occupancy

Paris, France, experienced decreases in occupancy (-4.8% to 76.5%) and RevPAR (-1.7% to EUR195.58). ADR in the market increased 3.3% to EUR255.80. Paris’ occupancy decreased year over year in 10 of 12 months in 2015. During the final month of the year, occupancy fell 20.0% to 58.9%, the lowest December absolute occupancy in the market since 2001. According to STR Global analysts, performance was boosted some by the United Nations Conference on Climate Change (30 November-11 December); however, security concerns have led to an overall decline in travel to Paris.

Milan, Italy, reported a 9.4% increase in occupancy to 69.4% and double-digit spikes in ADR (+19.3% to EUR155.58) and RevPAR (+30.5% to EUR107.92). The market’s success story of 2015 was primarily driven by the Expo Milano, which ran from May through October. Even after Expo Milano, the market stayed busy with large events such as Eicma-Motorcycle Exhibition and ITMA (International Textile and Machinery Association) exhibition.

Compared with December 2014, Europe reported a 0.6% increase in occupancy to 59.1%, a 2.4% increase in ADR to EUR105.36 and a 3.1% increase in RevPAR to EUR62.30.

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