Europe's hotel industry experienced 2.4% occupancy growth in 2017 to 71.9%, and a 3.1% ADR increase to €110.51 ($136.59) drove RevPAR up 5.6% to €79.46 ($98.22).
LONDON—Europe’s hotel industry posted solid growth across the three key performance metrics during 2017, according to data from STR.
Euro constant currency, 2017 vs. 2016
- Occupancy: +2.4% to 71.9%
- Average daily rate (ADR): +3.1% to EUR110.51
- Revenue per available room (RevPAR): +5.6% to EUR79.46
Local currency, 2017 vs. 2016
• Occupancy: +3.9% to 74.3%
• ADR: +5.3% to EUR117.93
• RevPAR: +9.4% to EUR87.57
STR analysts noted that the absolute occupancy level was well above historical averages in the Netherlands. The country’s overall performance growth was driven by its key market, Amsterdam, where occupancy was up 4.1% to 81.5% and ADR grew 6.0% to EUR143.91. A pair of events lifted Amsterdam’s performance in September. The IBC entertainment and technology conference, which drew a record crowd, led to an average occupancy of more than 90% with rate increases ranging between 41% and 67% over a five-day period. The European Photovoltaic Solar Energy and Exhibition (EU PVSEC) also helped push occupancy above 90% on four straight nights near the end of September.
- Occupancy: +0.7% to 74.6%
- ADR: +8.0% to EUR114.41
- RevPAR: +8.8% to EUR85.29
The country’s occupancy and rate levels were well above long-term averages in Spain. The occupancy growth came even with relatively flat total-year occupancy in Barcelona (-0.1% to 76.7%). Barcelona saw three consecutive months of year-over-year RevPAR declines following the Catalan Independence Referendum. Earlier in the year, performance growth was strong, thanks in part to events such as the Barcelona International Comics Fair (April), European Society of Cardiology Congress (August), International Epilepsy Congress (September) and the Congress for European Society of Organ Transplantation (September). United European Gastroenterology Week (October/November) helped performance after unrest began around the time of the referendum.
- Occupancy: +0.5% to 77.4%
- ADR: +3.6% to GBP92.32
- RevPAR: +4.1% to GBP71.49
The U.K.’s year-end performance figures were mainly the result of a record-breaking first half, as STR reported in August. Following the results of the June 2016 referendum to leave the European Union, the British pound was devalued considerably against the dollar and the euro. In the short term, this proved to be very positive for U.K. hoteliers, as the favorable exchange rate attracted an influx of international tourists, and provided a boost in domestic tourism as traveling to other countries became less affordable for U.K. residents. Performance figures for the final months of 2017 showed that the “Brexit effect” appears to be waning, as the pound continues to climb back in value. While occupancy levels decreased slightly for seven straight months to end the year, ADR grew year over year in each month of 2017. London hotels posted a 4.1% increase in ADR for the year, with relatively flat occupancy that was heavily affected by strong, continued supply growth. The U.K. capital also showed resilience in the wake of multiple terror attacks in 2017, with minimal impact on hotel performance following each instance.
International Media Contacts:
Media & Communications Coordinator
+44 (0)207 922 1979
Director of Marketing, Research & Analysis
+44 (0)207 922 1965
The above is a news release written by a third party. While HNN’s editorial mission is to produce unique content, it occasionally publishes timely, newsworthy news releases to complement in-house reporting efforts. All news releases are clearly marked as such. For questions and clarification, please contact Editor-in-Chief Stephanie Ricca at firstname.lastname@example.org.