STR Global - Europe hotel overview
26 August 2015All European sub-regions indicated a positive RevPAR growth for the first half of 2015, with mid-scale and economy segments leading the charge. Hotel Management International associate partner STR Global guides us through the numbers.
Hotels in Europe reported a 6.2% increase to €74.03 in revenue per available room (RevPAR) levels for the June 2015 year-to-date (EUR constant currency). This was the result of positive occupancy (2.7%) and average daily rate (ADR) (3.4%) for the first six months of the year when compared with the same period in 2014.
Besides total continent performance, all European subregions indicated a positive RevPAR growth for the first half of 2015.
Despite the weakened euro partly impacting overall ADR increases in Europe, all subcontinents managed to increase occupancy levels. The increase in occupancy can be seen as a positive result of inbound travel into Europe, due to a benefiting currency conversion rate that particularly affected Southern and Eastern Europe. Overall, for the first six months of the year, occupancy and ADR increased throughout all class segments resulting in positive RevPAR growth. However, the positive performance was mainly driven by the increases in ADR, which grew at a faster rate than occupancy.
The midscale and economy hotel segment continued to maintain the most significant increase of all classes in both measures, with 6.2% growth in ADR and a 3.6% increase in occupancy.
