According to data compiled by STR, the European
hotel industry reported increases in each of the three key
performance metrics during the first quarter of 2017.
In Euro constant currency, Q1 2017 vs. Q1 2016,
Europe reported a 4.1% increase in Occupancy to 63.5%, ADR rose by
2.3% to EUR100.94 and RevPAR jumped 6.5% to EUR64.06.
Azerbaijan, Spain and
in local currency, Q1 2017 vs. Q1 2016, hotels
in Baku (Azerbaijan) reported an overall occupancy increase of
74.9% to 49.5%, ADR was up 25.5% to AZN171.46 and RevPAR grew by
119.5% to AZN84.85.
With one of the world’s most improved economies
in 2017, rising 13 spots in the World Economic Forum’s global
ranking, the Azerbaijani capital experienced massive uplifts in
hotel performance in Q1. While ADR increased, exchange rate
fluctuations have made the destination cheaper for many
international visitors. STR analysts note that the performance
growth is particularly impressive considering the market
experienced significant supply growth of 18.1% in 2015 and 6.8% in
2016. Looking ahead, Baku currently has two new hotels In
Construction and another pair in the Planning stage.
Hotels in Spain reported a 2.3% increase in
occupancy to 67.5%, ADR rose by 4.8% to EUR100.76 and RevPAR was
up 7.2% to EUR68.06.
March 2017 marked Spain’s 47th consecutive month
of year-on-year RevPAR growth. Despite a slight slowdown in
occupancy and ADR compared with January and February, Spain still
posted a 3.6% increase in RevPAR in March. Barcelona was the
standout market in Q1 with a 13.6% increase in RevPAR that was
equal parts occupancy and ADR growth. March was a particularly
strong month for Barcelona, with occupancy up 8.0% and ADR up
18.0%. Performance was boosted by the Mobile World Congress (27
February through 2 March).
The United Kingdom also saw increases across all
three metrics. Occupancy was up 2.6% to 70.6%, ADR increased by
4.1% to GBP83.73 and RevPAR grew by 6.8% to GBP59.12.
U.K. hotels continued a run of positive
year-on-year performance that started late in 2016. March was the
strongest growth month of the quarter (RevPAR: +8.3%), thanks in
part to a favorable Easter calendar shift. STR analysts also
attribute performance to Brexit and the devaluation of the British
pound with a subsequent increase in domestic and international
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