Market Reports

European Hotel Industry Reports Mostly Positive Performance Metrics for Q1 2019

For the first quarter of 2019, Europe saw occupancy dip 0.2% to 63.7%, ADR increased 1.6% to €101.28 ($112.96) and RevPAR rose 1.3% to €64.56 ($72).
Calle Gran Va, Madrid, Spain - Photo by Florian Wehde on Unsplash
Major events help Madrid hotels break Q1 performance records

STR

  • Major events help Madrid break Q1 performance records 
  • Athens reports noticeable drop in demand, significant supply growth

Europe’s hotel industry reported mostly positive results in the three key performance metrics during Q1 2019, according to data from STR.

Euro constant currency, Q1 2019 vs. Q1 2018

Europe

  • Occupancy: -0.2% to 63.7%
  • Average daily rate (ADR): +1.6% to EUR101.28
  • Revenue per available room (RevPAR): +1.3% to EUR64.56

Local currency, Q1 2019 vs. Q1 2018

Madrid, Spain

  • Occupancy: +2.6% to 71.1%
  • ADR: +5.7% to EUR106.79
  • RevPAR: +8.4% to EUR75.95

The absolute occupancy and RevPAR levels were the highest among first quarters with the most complete samples in STR’s Madrid database. STR analysts attribute a 4.4% rise in demand (room nights sold) to major events hosted in the market, such as Mercedes Benz Fashion Week Madrid (24-29 January), ARCOmadrid (27 February-3 March), World ATM Congress (12-13 March), Motortec Automechnika (13-16 March) and the annual match between Real Madrid and Barcelona (2 March).

Athens, Greece

  • Occupancy: -11.0% to 54.5%
  • ADR: +1.9% to EUR103.34
  • RevPAR: -9.3% to EUR56.32

STR analysts note that a 9.2% decline in demand in the market came in comparison with a strong Q1 in 2018, when the number of rooms sold grew 5.4% and RevPAR jumped 13.2%. At the same time, however, Athens’ absolute occupancy level was its worst for a Q1 since 2014. New inventory played a role in the equation as a 2.0% increase in supply was the largest for a Q1 in the market for quite some time. Additionally, a surge in short-term rentals as outlined by AirDNA, is likely part of the explanation for how airport arrivals are up, yet hotel demand is down.

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