European Hotel Performance for Q3 2016, September 2016

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Hotels in Europe recorded positive Q3 2016 results when reported in euro constant currency, according to findings from STR, the leading global provider of competitive benchmarking, information services and research to the hotel industry. 

Compared with the three key performance metrics from the same period in 2015, Europe reported a 0.5% decrease in occupancy to 77.7%. However, a 2% increase in average daily rate (ADR) to EUR119.17 resulted in revenue per available (RevPAR) growth of 1.5% to EUR92.58.

Performance of featured countries for Q3 2016 (local currency, year-over-year comparisons):

Finland enjoyed a strong third quarter mainly thanks to growth in ADR (+8.9% to EUR99.67).  Occupancy also increased (+0.4% to 71.5%), resulting in a 9.3% increase in RevPAR to EUR71.27. This ADR level was a Q3 record for the country, and the occupancy level also represented their highest Q3 result since 2011. STR’s analysts note that weekday occupancy increased by 5.6% to 70.6%, while weekend absolute occupancy was marginally higher at 71.9%. 

Greece achieved an absolute occupancy level of 81.9%, up by 5.8%, which is the country’s highest recorded Q3 total. ADR also increased 2.2% to EUR144.49, resulting in an 8.1% RevPAR increase to EUR118.35. July proved to be their strongest month of the quarter, with a 9.5% increase in RevPAR, and September produced the highest occupancy level (84.3%). Weekday business drove performance in September, with 11 days of double digit RevPAR during Sunday to Thursday periods throughout the month. 

Ireland recorded double digit RevPAR growth for the 10 successive quarter; and occupancy increased 0.6% to 89.6%, and ADR grew by 13.9% to EUR133.04, which resulted in a 14.5% rise in RevPAR to EUR119.22. Ireland’s hotels faired particularly well in September, as there were only two days without double digit RevPAR growth. 

Performance of featured markets for Q3 2016 (local currency, year-over-year comparisons):

Amsterdam saw a decline in the three key performance indicators due to a strong comparison base. Occupancy dropped by 2.4% to 85.6%; ADR fell by 1.2% to EUR134.92; and RevPAR decreased by 3.6% to EUR115.55. Their performance has however followed a particularly strong 2015, where the market recorded an 18.9% Q3 increase, and despite an overall year-over-year performance decline, Amsterdam maintained its highest September year-to-date actual ADR (EUR137.83) since 2001.

Paris reported double digit drops in occupancy (-15.2% to 71.6%) and RevPAR (-13.9% to EUR182.35); ADR rose 1.5% to EUR254.55. September marked the city’s 14th consecutive month of declines in occupancy and RevPAR. However, ADR fluctuated.

Warsaw saw a 12.1% rise in ADR to PLN293.06. Occupancy also increased by 2.4% to 81%, and RevPAR rose 14.7% to PLN237.33. In September, the city reached an occupancy level of 88.1%, the market’s highest ever on record. Year-to-date through September, Warsaw’s performance has been largely driven by group business, with a 47.5% year-to-date occupancy increase in the segment. 

Europe’s performance for September 2016 (euro constant currency, year-over-year comparisons):

When compared with September 2015, Europe’s results were positive, with a reported 0.8% increase in occupancy to 81.0%, a 2.6% rise in ADR to EUR123.23, and a 3.4% lift in RevPAR to EUR99.77.