Market Reports

Mixed March 2015 Performance for Hotel Industry in European Region

The European hotel industry posted mixed results in year-over-year metrics when reported in U.S. dollars, Euros and British pounds for March 2015, according to data compiled by STR Global.

STR Global

The European hotel industry posted mixed results in year-over-year metrics when reported in U.S. dollars, Euros and British pounds for March 2015, according to data compiled by STR Global. 

Amongst Europe’s sub-regions, Northern Europe saw double-digit growth for ADR (+14.2 percent to EUR110.53) and RevPAR (+16.2 percent to EUR80.31) when compared to March 2014. Within the sub-region, Ireland drove the increases with significant gains in both ADR (+9.4 percent to EUR97.33) and RevPAR (+17.9 percent to EUR71.81).

Year-over-year March 2015 figures for Europe (U.S. dollars, Euros and British pounds):

 

Europe

% change

Occupancy

66.5%

+3.2%

ADR (U.S. dollars)

$116.69

-14.6%

ADR (Euros)

€107.54

+8.2%

ADR (British pounds)

£78.66

-4.2%

RevPAR (U.S. dollars)

$77.62

-11.9%

RevPAR (Euros)

€71.53

+11.6%

RevPAR (British pounds)

£52.32

-1.2%

Source: STR Global

Southern Europe (+13.0 percent to EUR61.90) also experienced a double-digit increase in RevPAR. Spain served as the primary driving factor for the sub-region with a 22.7-percent increase in RevPAR to EUR64.45. Barcelona, Spain, hosted the Mobile World Congress Conference in early March. 

Eastern Europe recorded the highest occupancy increase (+8.3 percent to 56.2 percent) but experienced the steepest decline in ADR (-5.1 percent to EUR70.14). 

Amongst countries in Europe, eight experienced RevPAR increases of at least 15.0 percent when reported in Euros: Malta (+26.7 percent to EUR58.85); Spain (+22.7 percent to EUR64.45); Lithuania (+18.7 percent to EUR28.55); Czech Republic (+18.6 percent to EUR38.04); Hungary (+18.6 percent to EUR38.01); Ireland (+17.9 percent to EUR71.81); Israel (+17.4 percent to EUR96.25); and Slovakia (+15.0 percent to EUR32.23). 

Israel recorded the highest increase in ADR when reported in Euros, up 28.2 percent to EUR161.58. The country also experienced the largest decline in occupancy (-8.4 percent to 59.6 percent). 

Slovakia posted the highest increase in occupancy, up 13.1 percent to 53.3 percent. 

Russia experienced the largest decreases in ADR (-21.1 percent to EUR76.52) and RevPAR (-18.2 percent to EUR37.94). The country’s performance continues to be affected by international sanctions. The devaluation of the Russian ruble, which began late last year, has led to greater performance drops for the first quarter of 2015 when compared to the same months from 2014.  

Highlights from key market performers for March 2015 include (year-over-year comparisons, all currency in Euros):

  • Six markets recorded double-digit occupancy increases, led by Copenhagen, Denmark, where occupancy was up 12.5 percent to 70.9 percent.
  • Moscow, Russia, reported the largest occupancy decrease, falling 6.7 percent to 55.8 percent.
  • Barcelona experienced the largest ADR increase for the month, up 44.0 percent to EUR148.55. Tel Aviv, Israel, followed with a 27.3-percent increase to EUR210.12. Overall, eight markets recorded double-digit ADR increases for the month.
  • Moscow reported the largest ADR decrease, falling 22.2 percent to EUR95.49. Saint Petersburg, Russia, experienced the second-largest ADR decrease, dropping 14.4 percent to EUR55.31.
  • Three markets experienced RevPAR increases of more than 20.0 percent, including Barcelona (+53.9 percent to EUR108.12). Tel Aviv followed with a 24.0-percent increase to EUR142.80.
  • Moscow (-27.4 percent to EUR53.24) reported the largest RevPAR decrease. 

Performances of key countries in March 2015* (all monetary units in local currency):

Country

Occupancy

% change

ADR

% change

RevPAR

% change

Germany

68.4%

+4.9%

EUR99.47

+5.6%

EUR68.06

+10.8%

Italy

59.5%

+1.5%

EUR109.55

-0.5%

EUR65.14

+1.1%

Russia

49.6%

+3.6%

RUB4,804.16

+0.2%

RUB2,381.99

+3.9%

Spain

67.3%

+4.6%

EUR95.74

+17.3%

EUR64.45

+22.7%

United Kingdom

74.8%

+1.3%

GBP82.30

+3.5%

GBP61.54

+4.9%

*percentages are increases/decreases for March 2015 versus March 2014

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