Europe hotel overview

Hotels in Europe reported a 7.7% increase in RevPAR to €81.07 for October 2015 year to date (YTD). This was the result of growth in occupancy (2.7%) and average daily rate (ADR) (4.9%) when compared with the same period in 2014.

After removing the exchange rate impact on the euro and calculating ADR on a constant-currency basis, all European sub-regions indicated RevPAR growth for the first half of 2015.

Although a weakened euro has partially contributed to overall ADR increases in Europe, all continents managed to increase occupancy levels compared with the same period in 2014. This increase may be a result of inbound travel to Europe, which has seen a recent boost due to a beneficial currency conversion rate, particularly affecting Southern and Eastern Europe.

Germany reported increases in each of the three key performance metrics: occupancy (1.6% to 77.0%), ADR (6.4% to €107.67) and RevPAR (8.1% to €82.91) in the month of October. Rates drove RevPAR as German hotels benefitted from a mix of international fairs such as the ANUGA Food Show in Cologne, ceramitec in Munich and the European Petrochemical Association's annual meeting in Berlin.

Poland recorded a 4.9% increase in occupancy to 77.1% in October, a 3.7% rise in ADR to ZL275.31 and an 8.8% increase in RevPAR to ZL212.31. Strong leisure visitation was a main factor behind the country's October YTD RevPAR of €183.98, the highest for that time period since 2007.

Spain posted a 5.7% rise in occupancy to 77.1%, as well as double-digit increases in ADR (13.8% to €104.26) and RevPAR (20.3% to €80.43). Spain's absolute occupancy for October was its highest since 2000, while RevPAR reached its highest level for the month since 2002. Barcelona hosted four medical conferences in October: the 54th Annual Meeting of the European Society for Paediatric Endocrinology, the 31st Congress of the European Committee for Treatment and Research in Multiple Sclerosis, the CPhl worldwide exhibition and the 23rd United European Gastroenterology week.

Ireland posted a 5.1% increase in occupancy to 80.1%, as well as double-digit growth in ADR (15.5% to €109.69) and RevPAR (21.4% to €87.86) for October 2015 YTD. In October, the country was one of the strongest-performing European countries in absolute occupancy, with the figure breaching 80.0% in six consecutive months.

Italy reported a 6.1% rise in occupancy to 68.3%, and double-digit increases in ADR (10.6% to €146.98) and RevPAR (17.3% to €100.36) for October 2015 YTD. Significant performance increases occurred in Milan, which hosted Fashion Week and Expo Milano. Absolute occupancy in the market reached 90.8% in the final month of the event.

The general forecast for Europe shows a positive outlook for 2016, with a majority of markets expected to have increased performance over 2015. Milan, Cologne and Prague are expected to experience a decline in RevPAR in 2016 due to the comparison with a particularly strong year where international events held in those cities boosted the 2015 performance.