Hotels in Andalusia have been recording a significant RevPAR increase (+8.1%) over the first semester of 2014. This gain is tied to increases in both occupancy and average daily rates. The region is back on a positive momentum, as this recent increase follows a 2.4% RevPAR rebound initiated in 2013.
Indeed, in 2013 the region posted positive change in occupancy with a rise by 2.2 points (to 60.7%), more than compensating for another decrease in average daily rates (-1.2% to €72.4). Hoteliers thus benefited from a 2.2% increase in RevPAR to €44 on a full-year basis, driven merely by the bounce back in volumes (overnights spent). Only Sevilla suffered from a last banderilla of the crisis as it posted a moderate 0.5% decrease in RevPAR in 2013, due to the decrease in ADR (-1.4%).
However, Andalusia's capital city has put back on its "traje de luces" (suit of lights) and has been recording positive change over the first six months of 2014, with rates rising by 0.8% and occupancy rates gaining 1.4 point to 61.6%. Sevilla's RevPAR over the S1 2014 thus climbed by 3.2%. And Andalusia as a whole is doing even better, with a 8.1% surge in RevPAR to €42.6. This positive trend is now linked to the change in average daily rates (+2.2% to €69.5) in addition to rising occupancy that remains the key engine for growth: OR increased by 3.4 points to 61.4% over the S1 2014.
Although still far from the impressive growth track recorded by the Canary Islands since 2013 (read our article), Andalusia can be confident about its 2014 year-end performances if the second semester is to confirm the bullish figures recorded so far on its hospitality market.
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