LONDON—The European hotel industry posted mixed results in year-over-year metrics when reported in U.S. dollars, euros and British pounds for July 2012, according to data compiled by STR Global.
“European hotels reported a solid increase in average room rates for the month of July when measured in euro terms (+7.0 percent). However, this is coupled with the third consecutive month of small occupancy declines”, said Elizabeth Randall Winkle, managing director of STR Global. “With the Olympic coverage taking over a bit from the ongoing troubles in the eurozone, London (U.K.) hoteliers reported weaker occupancy performances in June and the non-Olympic days in July compared to last year. We receive monthly results from more than 422 hotels in London and results for July reflect that the first four days of the Olympics during July could not offset the weaker occupancy in the early part of the month. London reported 80.7 percent occupancy (a decline of 11.1 percentage points) and £166.34 average room rate (+8.8 percent) compared to July 2011. This occupancy result for July 2012 still puts London into the top eight out of 31 European capital or gateway cities, which we track on our European Hotel Review. Given the most of the Olympic events occurred in August, a bigger impact, especially in ADR terms, should be visible in London’s August results”.
Highlights from key market performers for July 2012 include (year-over-year comparisons, all currency in euros):
• Bratislava, Slovakia, reported the largest occupancy increase, rising 19.5 percent to 51.2 percent, followed by Vilnius, Lithuania, with a 10.6-percent increase to 78.7 percent.
• Two markets experienced double-digit occupancy decreases: London (-12.1 percent to 80.7 percent) and Istanbul, Turkey (-10.6 percent to 72.7 percent).
• Five markets achieved ADR increases of 15 percent or more: Reykjavik, Iceland (+26.1 percent to EUR129.63); Tel Aviv, Israel (+22.4 percent to EUR205.15); London (+22.1 percent to EUR212.91); Manchester, U.K. (+18.5 percent to EUR80.76); and Istanbul (+15.0 percent to EUR176.84).
• Geneva, Switzerland (-15.1 percent to EUR242.25), and Zurich, Switzerland (-11.5 percent to EUR183.69), ended the month with the largest ADR decreases.
• Reykjavik grew 32.2 percent in RevPAR to EUR119.54, achieving the largest increase in that metric.
• Geneva fell 21.5 percent in RevPAR to EUR160.65, reporting the only RevPAR decrease of more than 20 percent.
View the global hotel review for July.
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