Europe hotel overview – STR Global Hotel Market Forecast
1 April 2015The European hotel industry posted mixed results in year-on-year metrics for February 2015. Hotel Management International associate partner STR Global guides us through the numbers.
According to the February 2015 edition of the STR Global Hotel Market Forecast - covering 29 markets across Europe - Milan, Barcelona and Dublin are expected to see the most significant increase in revpar in 2015. Moscow is expected to further decline this year, impacted by economic sanctions due to the continuous conflicts between Russia and Ukraine, the low oil price, as well as inflation and devaluation of the Russian rouble.
Europe reported a 5.0% increase (euro constant currency) in revpar for the region, achieving €72.44. The strong revpar increase was a result of positive occupancy growth (2.1%), and an even stronger ADR (2.8%) compared with the same period in 2013. Demand growth (3.1%) picked up compared with the same period last year, while supply consistently grew by 1.1%.
Of the selected key countries, the UK remains the strongest performer in terms of occupancy actuals (77.2%), followed by Ireland (74.6%) and Malta (74.3%).
Greece continues to show significant growth in occupancy (15.5%) and ADR (5.8%). Year-end December occupancy (66.2%) figures are the highest since 2008 and ADR levels are stronger than the previous three years (€106.83).
Spain increased occupancy (4.5%) and ADR (5.7%) year end 2014, with an ADR of €92.15, when looking at year-on-year comparisons.
Ireland (9.4%), Hungary (8.8%) and Turkey (8.7%) recorded significant increases in ADR throughout 2014.
Russia continues to be affected by the ongoing political instability in Ukraine, not to mention the devaluation of the Russian rouble. The total impact this has had shown the largest year-end decline in occupancy (12.9%).
