STR: Europe hotel performance for Q1 2016, March 2016


The European hotel industry recorded positive results in the three key performance metrics when reported in euro constant currency, according to Q1 2016 data from STR.

Compared with Q1 2015, Europe reported 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.

Performance of featured countries for Q1 2016 (local currency, year-over-year comparisons):

1Croatia posted 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). The first quarter is a traditionally slow season in Croatia. In comparison to a low base from 2015, the country’s performance was significantly driven by March, with RevPAR at +55.4% (HRK173.39).

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.

2Ireland 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. The absolute level of EUR86.67 was a March record for the country, helped by a busy week that included St. Patrick’s Day and the RBS 6 Nations rugby final weekend. STR analysts point to continuous demand growth and stagnant supply as the reason behind the RevPAR trend in Ireland. Demand has been driven by Tourism Ireland’s efforts to build on overseas tourism, as reflected by a record 25 million passengers travelling through Dublin Airport in 2015.

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.

Performance of featured markets for Q1 2016 (local currency, year-over-year comparisons):

Amsterdam, Netherlands, experienced a 3.9% increase in occupancy to 68.5% as well as double-digit growth in ADR (+12.3% to EUR122.92) and RevPAR (+16.7% to EUR84.15). STR analysts labelled Amsterdam as a standout in March with RevPAR growth at +25.8. Occupancy for the month eclipsed 90.0% on Friday and Saturday, 25-26 March, during the Food Festival Amsterdam.  ADR and RevPAR also reached their highest levels for the month on those two days.

Brussels, Belgium, saw decreases in occupancy (-9.8% to 57.4%) and RevPAR (-8.1% to EUR65.06). ADR was up 1.9% to EUR113.27. Performance in the market was significantly affected by the terror attacks of 22 March, as occupancy dropped from 81.8% on the day before the 22nd to a low of 19.5% on the 28th. Occupancy for the month was down 19.6% to 57.7%.

Geneva, Switzerland, reported decreases across the board: occupancy (-3.1% to 63.5%), ADR (-1.1% to CHF300.01), RevPAR (-4.2% to CHF190.52). According to STR analysts, Geneva saw a positive impact from the Geneva International Motor Show (3-13 March), but the event wasn’t enough to counter a slow time around Easter as many left the market to travel elsewhere. In addition, Geneva likely saw some impact from the closing of the Brussels airport.

Milan, Italy, experienced slight decreases in occupancy (-2.0% to 59.8%) and RevPAR (-0.6% to EUR79.18). ADR was up 1.4% to EUR132.45. Performance in the market has slowed since the end of the fourth quarter of 2015, but in general, Milan seems less affected by the Brussels attacks when compared with other European markets.

Europe performance for March 2016 (Euro constant currency, year-over-year comparisons):

Compared with March 2015, Europe reported a 0.3% increase in occupancy to 66.2%, a 1.9% rise in average daily rate to EUR105.28 and a 2.2% lift in revenue per available room to EUR69.71.

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