Hotels in Europe recorded positive Q2 2016 results when reported in euro constant currency, according to data from STR.
Compared with the three key performance metrics from Q2 2015, Europe reported nearly flat occupancy (+0.6% to 73.9%). Average daily rate was up 2.1% to EUR114.33. Revenue per available room grew 2.7% to EUR84.49.
The UK experienced steady results across the metrics: occupancy (-0.7% to 78.9%), ADR (+1.7 to GBP89.71) and RevPAR (+1.0% to GBP70.82). The Brexit vote occurred late in June, and STR analysts note that it is still too early to quantify the impact on UK hotels and the European hotel industry as a whole.
France reported decreases across the three key performance metrics: occupancy (-5.5% to 68.2%), ADR (-7.5% to EUR138.43) and RevPAR (-12.6% to EUR94.34). France has seen consistent performance declines due to security concerns in the country.
Even a large event like the 2016 UEFA European Championship (10 June to 10 July) could not push performance into positive territory as June produced a 5.5% decrease in occupancy to 75.1% and a 5.3% drop in ADR to EUR157.13. The country’s hotel market will be monitored further after the mid-July terrorist attack in Nice.
Italy reported nearly flat occupancy (+0.4% to 72.4%). ADR in the country was down 2.2% to EUR149.98, and RevPAR dipped 1.8% to EUR108.53. STR analysts note that the absolute levels were solid, and year-over-year decreases were due to a comparison with a strong second quarter in 2015 (helped by Expo Milano). Group demand for Q2 2016 increased 4.0%, while Transient demand slipped 0.8%. At the market level, Sicily (+10.3%) reported the largest demand increase through the first six months of the year.
Turkey reported double-digit decreases in each of the three key performance metrics. Occupancy fell 23.9% to 51.0%; ADR was down 17.2% to TRY271.85; and RevPAR dropped 37.0% to TRY138.55. The country’s hotel industry has been significantly affected in both metropolitan areas and tourist regions by terrorist attacks and ongoing security concerns. Demand in both the Transient and Group segments declined more than 20.0% during the quarter. Turkey’s hotel performance will be monitored further after the attempted coup in mid-July.
Europe’s results were mostly positive when compared with June 2015. The region reported a 0.7% dip in occupancy to 77.1%. However, ADR was up 1.3% to EUR119.48, and RevPAR increased 0.7% to EUR92.18.
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