The European hotel industry recorded positive results in the three key performance metrics when reported in Euro constant currency, according to July 2015 data compiled by STR Global.
Compared to July 2014, Europe reported a 5.1% increase in occupancy to 77.3%, an 8.0% increase in average daily rate to EUR117.70 and a 13.5% increase in revenue per available room to EUR90.93.
Performance of featured countries for July 2015 (local currency, year-over-year comparisons):
Austria reported a 4.7% increase in occupancy to 77.0% as well as double-digit growth in ADR (+13.5% to EUR93.20) and RevPAR (+18.8% to EUR71.79). Preliminary estimates from the Austrian Institute of Economic Research showed second-quarter GDP growth of 0.3% when compared to the previous quarter. Improvements in domestic demand and government consumption were cited as reasons.
The Czech Republic experienced double-digit increases in each of the three key performance metrics: occupancy (+12.8% to 82.3%), ADR (+15.3% to CZK1,883.42) and RevPAR (+30.1% to CZK1,549.45). GDP for the second quarter of 2015 increased year-over-year by 4.4%, according to a preliminary estimate from the Czech Statistical Office. Employment also was up 1.4% for the same period.
Germany saw a 3.2% increase in occupancy to 72.9%, a 5.2% rise in ADR to EUR90.24 and an 8.6% increase in RevPAR to EUR65.74. GDP growth for the second quarter of 2015 (+0.4%) fell just short of expectations, according to Destatis.
Portugal posted a 6.2% increase in occupancy to 82.3% and double-digit growth in ADR (14.5% to EUR110.31) and RevPAR (+21.6% to EUR90.80). According to Eurostat, the unemployment rate in Portugal dropped 14.3% in June 2015.
Performance of featured markets for July 2015 (local currency, year-over-year comparisons):
Berlin, Germany, reported increases in the three key performance measurements: occupancy (+9.7% to 83.0%), ADR (+5.9% to EUR82.61) and RevPAR (+16.2% to EUR68.57). For the first half of 2015, arrivals in Berlin increased 4.9% according to Amt für Statistik Berlin-Brandenburg. The number of visitors from foreign countries increased 9.0%.
Madrid, Spain, saw a 5.2% increase in occupancy to 66.6%, a 14.2% rise in ADR to EUR86.89 and a 20.2% increase in RevPAR to EUR57.90. RevPAR in the market has grown year-over-year by double digits in each month since March 2015. STR Global analysts attribute the growth to an increase in demand, improved economy across the country and a weak Euro.
Paris, France, experienced increases in the three key performance metrics: occupancy (+2.4% to 86.9%), ADR (+9.4% to EUR274.60) and RevPAR (+12.0% to EUR238.68). Demand growth (+3.4%) outweighed supply (+1.0%) for the month. In the previous six months, supply outpaced demand.
Vienna, Austria, posted a 4.2% increase in occupancy to 76.3% as well as double-digit growth in ADR (+11.0% to EUR88.49) and RevPAR (+15.7% to EUR67.54). July results in the market remain in line with year-to-date performance, which shows RevPAR growth of 8.2%.
Additional performance data
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About Constant Currency
Constant Currency methodology eliminates the effects of exchange rate fluctuations when calculating performance figures. STR Global utilizes Constant Currency to present the most accurate performance summary of a region comprising different local currencies. All ADR and RevPAR calculations use 31 January 2015 exchange rates.
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