European hotel sector posts strong first quarter

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The European hotel industry has reported a strong first quarter, with a 0.8% increase in occupancy to 61.1%, a 2.3% rise in average daily rate to EUR102.98 and a 3.1% lift in revenue per available room to EUR62.94 compared to the previous corresponding period in 2015.

Highlights included Croatia posting double-digit increases across the three key performance metrics: occupancy (+14.9% to 26.6%), ADR (+16.0% to HRK534.14) and RevPAR (+33.3% to HRK142.12).

Germany recorded modest growth in the three key performance indicators: occupancy (+0.8% to 62.4%), ADR (+2.2% to EUR99.78) and RevPAR (+2.9% to EUR62.22). Germany’s March ADR (EUR101.58) and RevPAR (EUR67.96) were the highest on record for the month. The country’s March occupancy (66.9%) was the second-highest level STR has benchmarked for the month.

Ireland saw a 4.8% rise in occupancy to 66.4% as well as double-digit growth in ADR (+17.6% to EUR107.84) and RevPAR (+23.2% to EUR71.63). The quarterly performance follows recent trends in the country with March being the 16th consecutive month with a year-over-year RevPAR increase.

Portugal reported increases in occupancy (+6.2% to 49.7%) and ADR (+8.4% to EUR74.39), leading to a double-digit lift in RevPAR (+15.1% to EUR36.98). Q1 is a traditionally slow season for Portugal, but the month’s 62.4% occupancy level and ADR of EUR75.99 were the highest for March since 2008. STR analysts believe that Mediterranean visitors have diverted to countries like Portugal which are viewed as more secure destinations.

 

Klook.com

EXPERT OPINION

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