The European hotel industry posted mixed results in year-over-year metrics when reported in U.S. dollars, Euros and British pounds for February 2015, according to data compiled by STR Global.
Year-over-year February 2015 figures for Europe (U.S. dollars, Euros and British pounds):
| Europe | % change | |
| Occupancy | 62.6% | +3.1% |
| ADR (U.S. dollars) | $115.67 | -13.2% |
| ADR (Euros) | €103.19 | +5.9% |
| ADR (British pounds) | £74.98 | -6.2% |
| RevPAR (U.S. dollars) | $72.39 | -10.5% |
| RevPAR (Euros) | €64.58 | +9.2% |
| RevPAR (British pounds) | £46.92 | -3.3% |
Source: STR Global
Hotel performance largely dominated by the UK
Northern Europe continues to “dominate the region”, according to Elizabeth Winkle, managing director of STR Global. The sub-region saw double-digit growth for both ADR (+14.8 percent to EUR108.13) and RevPAR (+18.3 percent to EUR76.96).
“Northern Europe’s hotel performance is largely dominated by the United Kingdom,” Winkle said. “In sterling, the sub-region’s RevPAR growth was up almost 5 percent in comparison. The difference was impacted by the strength of the British pound against a weaker Euro”.
Winkle also noted “steady growth” in Western Europe, where RevPAR increased by 5.9 percent to EUR69.68, driven by ADR (+3.4 percent to EUR115.15) and occupancy (+2.4 percent to 60.5 percent).
Southern Europe recorded slight ADR growth of 1.1 percent to EUR91.76, whereas Eastern Europe reported double-digit declines in both ADR (-15.6 percent to EUR69.20) and RevPAR (-12.0 percent to EUR35.37).
“The conflict between Russia and Ukraine, sanctions and the plummeting of gas prices are negatively impacting the region”, Winkle said.
20%+ RevPAR increases
Amongst countries in Europe, six experienced RevPAR increases of at least 20.0 percent when reported in Euros: Lithuania (+35.6 percent to EUR26.50); Croatia (+24.3 percent to EUR15.99); Ireland (+23.2 percent to EUR63.12); Malta (+23.0 percent to EUR46.23); Hungary (+20.8 percent to EUR31.49); and the United Kingdom (+20.7 percent to EUR81.40).
“With the Euro being at a 12-year low against a strengthening U.S. dollar, an increasing number of U.S. travellers are expected to visit Europe in 2015,” Winkle said. “However, slower economic activity and a weaker Euro may affect business travel across the region, as well as outbound travel to the U.S.”
Highlights from key market performers for February 2015 include (year-over-year comparisons, all currency in Euros):
- Five markets recorded double-digit occupancy increases, led by Vilnius, Lithuania, where occupancy was up 21.5 percent to 49.4 percent. Warsaw, Poland, followed with a 17.5-percent occupancy increase to 69.1 percent.
- Moscow, Russia, reported the largest occupancy decrease, falling 5.7 percent to 58.2 percent.
- Manchester, England, reported the largest ADR increase for the month, up 24.9 percent to EUR99.72. Tel Aviv, Israel, followed with a 23.2-percent increase to EUR186.18.
- Barcelona, Spain, reported the largest ADR decrease, falling 29.6 percent to EUR98.79. Moscow experienced the second-largest ADR decrease, dropping 28.4 percent to EUR90.29.
- Four markets experienced RevPAR increases of more than 20.0 percent, including Vilnius (+38.5 percent to EUR28.10). Manchester followed with a 31.8-percent increase to EUR81.56.
- Barcelona (-33.3 percent to EUR58.54) and Moscow (-32.5 percent to EUR52.58) reported the largest RevPAR decreases.
Performances of key countries in February 2015* (all monetary units in local currency):
For more information click here*percentages are increases/decreases for February 2015 versus February 2014