STR: Record performance by Greek hotels during Q3 of 2016

Hotels in Europe recorded positive Q3 2016 results when reported in euro constant currency, according to data from STR.

Compared with the three key performance metrics from Q3 2015, Europe reported a 0.5% decrease in occupancy to 77.7%. However, a 2.0% increase in average daily rate (ADR) to EUR119.17 resulted in revenue per available (RevPAR) growth of 1.5% to EUR92.58.

Performance of featured countries for Q3 2016 (local currency, year-over-year comparisons):

Finland reported a strong quarter, mainly due to growth in ADR (+8.9% to EUR99.67). Occupancy also increased moderately (+0.4% to 71.5%), resulting in a 9.3% increase in RevPAR to EUR71.27. The absolute ADR level was a Q3 record for the country, and although occupancy growth was muted, the actual occupancy level was Finland’s highest for a third quarter since 2011. STR analysts note that weekday occupancy increased 5.6% to 70.6%, while weekend absolute occupancy was slightly higher at 71.9%.

Greece reached an absolute occupancy level of 81.9% (+5.8%), the highest on record for a Q3 in the country. ADR also increased 2.2% to EUR144.49, resulting in an 8.1% increase in RevPAR to EUR118.35. July was Greece’s strongest growth month of the quarter, with a 9.5% increase in RevPAR, while September produced the highest occupancy level (84.3%). In September, weekday business drove performance, with 11 days of double-digit RevPAR growth during the Sunday to Thursday periods throughout the month.

Ireland recorded its 10th consecutive quarter of double-digit RevPAR growth. Occupancy increased 0.6% to 89.6%, and ADR grew 13.9% to EUR133.04, resulting in a 14.5% lift in RevPAR to EUR119.22. September was a particularly strong month for the country’s hotels, as there were only two days without double-digit growth in RevPAR. Rate growth has been the driving factor for Ireland’s continued upward trajectory, as ADR is up 15.4% year to date. Occupancy is up 1.7% during the same nine-month time period.

Performance of featured markets for Q3 2016 (local currency, year-over-year comparisons):

Amsterdam, Netherlands, posted declines across the three key performance indicators due to a strong comparison base. Occupancy dropped 2.4% to 85.6%; ADR fell 1.2% to EUR134.92; and RevPAR declined 3.6% to EUR115.55. This performance, however, follows an exceptionally strong 2015, as the market recorded an 18.9% RevPAR increase in Q3 2015. Despite an overall year-over-year performance decline, Amsterdam maintained its highest September year-to-date actual ADR (EUR137.83) since 2001.

Paris, France, continued to feel the effects of security concerns in the country and the July terrorist attack in Nice. The market reported double-digit drops in occupancy (-15.2% to 71.6%) and RevPAR (-13.9% to EUR182.35), while ADR rose 1.5% to EUR254.55. September marked Paris’ 14th consecutive month of occupancy and RevPAR declines. Contrarily, ADR has fluctuated.

Warsaw, Poland, recorded strong growth mainly due to a 12.1% increase in ADR to PLN293.06. Occupancy increased 2.4% to 81.0%, and RevPAR grew 14.7% to PLN237.33. In September, Warsaw reached an actual occupancy level of 88.1%, the highest absolute level for any month on record in the market. Year to date through September, Warsaw’s performance has been largely driven by Group business (bookings of 10 or more at a time), with a 47.5% year-to-date occupancy increase in the segment.

Europe’s performance for September 2016 (euro constant currency, year-over-year comparisons):

Europe’s results were positive when compared with September 2015. The region reported a 0.8% increase in occupancy to 81.0%, a 2.6% rise in ADR to EUR123.23 and 3.4% lift in RevPAR to EUR99.77.

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RELATED TOPICS: Greece, Greek tourism news, Tourism in Greece, Greek islands, Hotels in Greece, Travel to Greece, Greek destinations , Greek travel market, Greek tourism statistics, Greek tourism report