Hotel Industry Performance Europe

Hotel Occupancy in the European Region Up 3.6% to 56.5% December 2013

Two markets experienced occupancy growth of more than 15 percent: Vilnius, Lithuania (+15.9 percent to 49.8 percent) and Tel Aviv, Israel (+15.5 percent to 62.1 percent).

STR Global The European hotel industry posted positive results in year-over-year metrics when reported in U.S. dollars, Euros and British pounds for December 2013, according to data compiled by STR Global. 

“2013 served as the beginning of the recovery for most of Europe’s economies and the hotel industry as a whole”, Naureen Ahmed, manager of marketing & analysis, said, adding that hotel demand grew 3.3% for the year.  

“However, this came at the expense of rate. RevPAR remains €4 from pre-recession levels achieved in 2007”, Ahmed said. “Southern Europe’s 6% RevPAR growth was one of the pleasant surprises of 2013. It is coming from a low base; however, it’s encouraging to see some growth in occupancy and ADR in the countries from these regions”. 

Ahmed said Europe’s hotel pipeline also has some interesting trends, including:

  • The U.K. has 38% of the total share of rooms to come online within Europe in 2014.
  • Russia, where all eyes are currently on the impending the Winter Olympics in Sochi, has an expected supply increase of 96%.
  • Spain is among the top five European countries with the largest pipelines, with an additional 4,000 rooms scheduled to open. 
“There appears to be some positives coming out of Southern Europe after several years of gloomy news”, Ahmed said. “All of Europe is pleased that the signs of recovery are beginning to take a foothold”. 

Table - December 2013 Performance for Hotel Industry in European Region

Highlights from key market performers for December 2013 include (year-over-year comparisons, all currency in Euros):

  • Two markets experienced occupancy growth of more than 15 percent: Vilnius, Lithuania (+15.9 percent to 49.8 percent) and Tel Aviv, Israel (+15.5 percent to 62.1 percent).
  • Istanbul, Turkey, fell 5.9 percent in occupancy to 56.7 percent, reporting the largest decrease in that metric.
  • Copenhagen, Denmark, rose 19.6 percent in ADR to EUR113.44, achieving the largest increase in that metric, followed by Tallinn, Estonia (16.9 percent to EUR78.25).
  • Moscow, Russia (-11.4 percent to EUR133.55) posted the largest ADR decrease for the month.
  • Three markets experienced RevPAR growth of more than 20 percent: Vilnius (+33.9 percent to EUR28.47); Copenhagen (+31.9 percent to EUR68.12); and Tallinn (+21.9 percent to EUR46.24).
  • Istanbul fell 15.1 percent in RevPAR to EUR66.78, reporting the largest decrease in that metric.
Table - December 2013 Performance for Hotel Industry in European Region - Key Countries

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STR Global provides clients-including hotel operators, developers, financiers, analysts and suppliers to the hotel industry-access to hotel research with regular and custom reports covering Europe, Middle East, Africa, Asia/Pacific and South America. STR Global provides a single source of global hotel data covering daily and monthly performance data, segmentation data, forecasts, annual profitability, pipeline and census information. Hotel operators can join the surveys on a complimentary basis and benefit from free industry data. STR Global is part of the STR family of companies and is proudly associated with STR, RRC Associates, STR Analytics and HotelNewsNow.com. For more information, please visit www.strglobal.com.



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