The European hotel industry posted mixed results in year-over-year metrics when reported in U.S. dollars, Euros and British pounds for October 2014, according to data compiled by STR Global.
ADR growth
“Each month this year, Europe has reported either flat or positive performance in the three key performance metrics”, said Elizabeth Winkle, managing director of STR Global. “October performance was no different. Actual average daily rate (EUR110.42) for the month was the highest rate we’ve seen in any October in the past 10 years. Compared to last year, ADR increased 3.8 percent. The ADR growth is driven mostly by Northern Europe, with help from Southern Europe.
Dublin, London and Edinburgh contribute to growth
“In Northern Europe, when measured in local currency year to date, markets such as Dublin, London, Copenhagen and Edinburgh have contributed to ADR growth”, Winkle continued. “With the exception of Dublin, the markets mentioned do not use the euro, which has an overall impact on the exchange rate. When measuring in constant currency, year-to-date ADR increased 4.4 percent for the Northern region. Athens, Lisbon and Madrid have all have contributed to Southern Europe’s ADR growth.”
Highlights
Highlights from key market performers for October 2014 include (year-over-year comparisons, all currency in euros):
- Seven markets achieved ADR increases of more than 10.0 percent: Geneva, Switzerland (+14.6 percent to EUR243.28); Manchester, England (+12.9 percent to EUR94.32); Lisbon, Portugal (+12.0 percent to EUR97.86); Amsterdam, Netherlands (+11.1 percent to EUR161.27); Paris, France (+10.8 percent to EUR295.21); Budapest, Hungary (+10.4 percent to EUR75.37); and Edinburgh, Scotland (+10.2 percent to EUR99.14).* Athens, Greece, reported the only double-digit occupancy increase, rising 18.2 percent to 79.6 percent.
- Tel Aviv, Israel, fell 24.4 percent to 64.9 percent in occupancy, posting the largest decrease in that metric.
- Moscow, Russia, reported the largest ADR decrease, falling 21.7 percent to EUR110.89. The market also experienced the largest RevPAR decrease, down 29.1 percent to EUR72.45.
- Six markets reported RevPAR increases of more than 15.0 percent: Athens (+27.8 percent to EUR85.01); Geneva (+20.6 percent to EUR173.46); Lisbon (+20.4 percent to EUR83.12); Madrid, Spain (+18.3 percent to EUR74.87); Budapest (+18.2 percent to EUR58.64); and Manchester (+15.3 percent to EUR79.78).
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