Hotels in Europe Report January 2016 Increase in ADR, OR and RevPAR

According to January 2016 data compiled by STR Global, the European hotel industry recorded positive results in the three key performance metrics when reported in Euro constant currency.

Compared with January 2015, Europe reported an 1.4% increase in occupancy to 54.7%, an 1.5% rise in ADR to EUR100.52 and a 3.0% increase in RevPAR to EUR55.03.

Performance of featured countries for January 2016 (local currency, year-on-year comparisons):

Belgium saw a 2.1% dip in occupancy to 55.5%, but a 3.1% rise in ADR to EUR97.34 pushed a 0.9% increase in RevPAR to EUR54.04. The absolute RevPAR level was the highest for a January in Belgium since 2008.

Russia posted a 2.0% increase in occupancy to 42.5% as well as double-digit growth in ADR (+11.0% to RUB5,078.63) and RevPAR (+13.2% to RUB2,158.66). The country’s hotel market has now posted eight consecutive months of double-digit revenue growth.

Switzerland reported decreases across the three key performance metrics: occupancy (-1.7% to 53.0%), ADR (-3.3% to CHF254.34) and RevPAR (-4.9% to CHF134.84). STR Global analysts note that performance results still reflect the Swiss National Bank’s January 2015 decision to unpeg the Swiss Franc from the Euro.

Turkey experienced a 6.2% decline in occupancy to 47.6%, but double-digit growth in ADR (+10.0% to TRY259.41) drove up RevPAR (+3.2% to TRY123.44) for the month.

Performance of featured markets for January 2016 (local currency, year-on-year comparisons):

Budapest, Hungary, posted increases in each of the three key performance metrics: occupancy (+1.8% to 48.8%), ADR (+6.3% to HUF21,745.38) and RevPAR (+8.3% to HUF10,621.66).

Dublin, Ireland, experienced a 7.3% lift in occupancy to 63.7% as well as double-digit growth in ADR (+19.4% to EUR104.36) and RevPAR (+28.0% to EUR66.51).

Belgrade, Serbia, saw substantial increases in occupancy (+55.2% to 42.0%) and RevPAR (+31.0% to RSD3,795.31). ADR for the month dropped 15.6% to RSD9,030.26. Significant supply growth (+9.3%) outpaced demand performance (+5.3%) in 2015. Absolute occupancy for January remained in line with recent months but was a significant improvement from a low base in January 2015.

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