European hotel sector moves ahead in June

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The European hotel industry recorded positive results in terms of occupancy, ADR and RevPAR, according to June 2015 data compiled by STR Global. 

The partnership is aimed at providing technology for small and mid-sized independent hotels and chains
The European hotel sector reported positive results in key metrics in June.

Compared to June 2014, Europe reported a 4.5% increase in occupancy to 78.1%, a 5.5% increase in average daily rate to EUR122.10 and a 10.2% increase in revenue per available room to EUR95.34.

Finland reported mixed results in the three key performance metrics with a 1.4% increase in occupancy to 71.4%, a 0.5% decrease in ADR to EUR97.44 and a 0.9% increase in RevPAR to EUR69.59.

Italy posted a 7.4% increase in occupancy to 74.5% as well as double-digit growth in ADR (+12.3% to EUR167.62) and RevPAR (+20.5% to EUR124.81).

Romania reported positive results in the three key performance measurements: occupancy (+7.3% to 75.8%); ADR (+8.4% to RON328.63); and RevPAR (+16.3% to RON249.06). STR Global analysts note that value added tax in the country is set to decrease to 19% from 24% in 2016, a move which should further aid tourism. VAT was cut to 9% for hotel accommodation in January 2015 and, whilst too early to judge, that cut might be a catalyst for stronger performance.

Spain experienced a 3.5% increase in occupancy to 76.5%, an 8.4% lift in ADR to EUR97.58 and a 12.2% rise in RevPAR to EUR74.69. Key June events hosted in the country included the 10th International Conference on Ecosystems & Sustainable Development (ECOSUD 2015) and The International School & Conference on Network Science (NETSCI2015).

Athens, Greece, saw occupancy rise 3.2% to 90.5%. However, ADR in the market was down 3.8% to EUR135.04 and RevPAR decreased 0.7% to EUR122.17. Demand in the market remained strong despite the month’s uncertainty about Greece’s participation in the Euro and agreement of a third European bailout in Greece.

Lisbon, Portugal, reported a 7.7% increase in occupancy to 84.0%. The market also recorded double-digit growth for ADR (+19.8% to EUR104.26) and RevPAR (+29.0% to EUR87.58). Year-end GDP in Portugal is expected to increase by 1.7%, according to Oxford Economics.

Milan, Italy, experienced double-digit increases for each of the three key metrics: occupancy (+10.9% to 76.5%), ADR (+29.5% to EUR177.63) and RevPAR (+43.7% to EUR135.82). Expo Milano 2015 reported 6.1 million attendees through June.

Zurich, Switzerland, reported increases in occupancy (+3.2% to 83.8%) and RevPAR (+2.5% to CHF206.89). ADR in the market fell 0.6% to CHF246.74. According to STR Global analysts, hotel performance in Switzerland has fluctuated due to the unpegging of the Swiss franc, which has made the destination more expensive.

Klook.com

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