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Tue, 26 June 2018

Hotels in Europe Report May 2018 Increase in ADR and RevPAR

According to data from STR, Europes hotel industry reported mixed results in the three key performance metrics during May 2018.

In Euro constant currency, May 2018 vs. May 2017, hotels in Europe reported a slight 0.8% drop in Occupancy to 74.4%, a 1.5% rise in ADR to EUR113.35 and an increase of 0.6% in RevPAR to EUR84.31.

In local currency, May 2018 vs. May 2017, hotels in the United Kingdom reported an increase of 0.5% in Occupancy to 79.8% while ADR and RevPAR fell 0.8% to GBP93.31 and 0.3% to GBP74.47 respectively.

The Compleat Angler luxury hotel in Marlow, England. Click to enlarge.

The year-on-year ADR decline was the first for the U.K. since October 2016. That decrease came even as strong demand (+2.0%) outpaced healthy supply growth (+1.4%). London overall performance was negative (RevPAR: -4.5%), mainly due to the largest ADR decrease in the market (-3.7%) for any May since 2009.

Hotels in France experienced a 3,2% rise in Occupancy to 69.6%, while ADR and RevPAR were up 1.7% to EUR120.87 and 4.9% to EUR84.18 respectively.

Another rise in demand (+2.7%) helped continue a trend of improved performance levels in the country. The monthly increase in RevPAR was the 11th consecutive for France. This increase was helped by Upscale hotels, which posted the largest jump in RevPAR (+9.1%) among the class segments.

Hotels in Portugal reported a 16.8% rise in ADR to EUR123.11 with RevPAR jumping 14.5% to EUR94.98. Occupancy was the only negative, down 2.0% to 77.2%.

The ADR and RevPAR growth figures were the highest for any May in STRs Portugal database. Those increases came even as slower demand (-2.0%) lowered occupancy levels. Overall RevPAR growth was helped by Upper Midscale hotels, as RevPAR in the class rose 33.9%.

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