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Published on : Thursday, December 5, 2013
Despite the sluggish economic condition of Europe, the growing momentum of the world travel industry has added a positive outlook to the hotels of Europe. The European hotel industry posted mixed results in year-over-year metrics when reported in U.S. dollars, Euros and British pounds for October 2013, according to data compiled by STR Global.
Europe’s year-to-date revenue per available room has increased 0.8 percent and is expected to remain flat through the close of 2013.
“Whilst demand has grown, it has come at the sacrifice of rate, which has dropped 1.3 percent this year”, said Elizabeth Winkle, STR Global’s managing director. “Northern Europe’s average daily rate is down 4.4 percent, mainly due to the high rates achieved during the 2012 Olympics which have normalized in 2013”.
Winkle said there were positive signs for northern Europe’s hotel industry, including having the highest occupancy (73.7 percent) among Europe’s four regions. She also pointed out that the United Kingdom’s 75.8-percent occupancy is among the highest occupancy rates in northern Europe.
Highlights from key market performers for October 2013 include (year-over-year comparisons, all currency in Euros):
• Two markets reported double-digit occupancy increases. Vilnius, Lithuania, rose 20.5 percent to 70.0 percent in occupancy, while Athens, Greece, was up 16.2 percent to 67.3 percent.
• Istanbul, Turkey, fell 11.5 percent in occupancy to 69.5 percent, reporting the only double-digit decrease in that metric.
• Vilnius rose 33.2 percent in ADR to EUR65.00, achieving the largest increase in that metric.
• Madrid, Spain (-11.8 percent to EUR87.20), and Moscow, Russia (-8.9 percent to EUR145.79), posted the largest ADR decreases for the month.
• Four markets experienced RevPAR growth of more than 15 percent: Vilnius (+60.5 percent to EUR45.49); Copenhagen, Denmark (+25.4 percent to EUR87.20); Frankfurt, Germany (+20.2 percent to EUR113.01); and Athens, Greece (+15.2 percent to EUR66.51).
• Istanbul, Turkey, fell 17.2 percent in RevPAR to EUR114.72, reporting the largest decrease in that metric.