LONDON—The European hotel industry posted mixed results in year-over-year metrics when reported in U.S. dollars, Euros and British pounds for June 2014, according to data compiled by STR Global.
Highlights from key market performers for June 2014 include (year-over-year comparisons, all currency in Euros):
- Athens, Greece, rose 19.9 percent in occupancy to 88.2 percent, reporting the largest increase in that metric. Bucharest, Romania, followed with an 11.3-percent increase to 74.5 percent.
- Moscow, Russia (-12.4 percent to 67.7 percent), and Frankfurt, Germany (-11.5 percent to 65.7 percent), posted the largest occupancy decreases.
- Copenhagen, Denmark (+16.4 percent to EUR142.62), and Edinburgh, Scotland (+11.6 percent to EUR117.89), reported the only double-digit ADR growth during June.
- Lisbon, Portugal, fell 15.0 percent in ADR to EUR90.64, posting the largest decrease in that metric.
- Three markets experienced RevPAR growth of more than 10.0 percent: Athens (+31.1 percent to EUR108.10); Copenhagen (+23.5 percent to EUR128.57); and Edinburgh (+10.3 percent to EUR103.95).
- Geneva, Switzerland, fell 13.3 percent in RevPAR to EUR185.96, reporting the largest decrease in that metric.
Year-to-date June 2014, Europe’s occupancy rose 2.1 percent to 66.0 percent; its ADR, in Euro terms, grew 2.4 percent to EUR103.90; and its RevPAR increased 4.5 percent to EUR68.59.
“Year to date, the region is growing on par for both occupancy and ADR, achieving a 4.6-percent growth in RevPAR, when measured in constant currency terms in Euros ”, said Elizabeth Winkle, managing director of STR Global. “Looking at the four sub-regions, Northern and Southern Europe have achieved more than 7.0-percent growth in RevPAR, in constant currency. The only region to report negative RevPAR results was Eastern Europe (-0.9 percent), but this is mostly driven by a drop in occupancy of 3.8 percent.
“As economies across Europe improve, we are starting to see the impact in the hotel industry. There are some standout performers, such as the United Kingdom, where the economy is performing well. Concerns exist, particularly in France, where the proposal of a new hotel tax is on the horizon. With recent VAT increases on hotel stays, the new tax, if passed, could have a damaging impact on hotels performance and profitability”.
View the global hotel review for the month of June.
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