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January 2017: Overall improvement in the European hospitality industry

The European industry starts the year on a positive note, with indicators showing strong growth in most destinations. Hotel performances are driven by a significant rebound in occupancy rates, in all countries, while growth in activity benefits all hospitality segments.

In this first month of the year, hoteliers post indicators that are up. Their RevPAR (revenue per available room) is up 9.9% compared to January 2016. This is due to an increase in the   occupancy rate by 4.0 points combined with minor growth in the average price, which gained 2.2%. All categories show higher performances, with RevPARs up by 9.7% for high-end hotels to 10.6% for economic hotels. The rebound in the   occupancy rate reflects the return of international customers to some markets, which had suffered greatly in recent months from the decline in the number of customers, particularly in France and Belgium, although the latter also recorded a slight decline in RevPAR due to lower prices.

January 2017: Monthly Hotel chains results by category

While France suffered a sharp deterioration in its performance in 2016, this start of the year 2017 marks new impetus for its tourism and hospitality economy. With a RevPAR up by 11.3 %, hoteliers appear to be gradually making up for the accumulated delay in recent months. Belgium is experiencing more difficulty getting out of its stalemate. Its RevPAR fell again by 3.2%, despite a slight rebound in its occupancy rate by 1.3 %. Nonetheless, this slight improvement suggests, like last month that customers are beginning to regain confidence in the destination. In January 2017, Hungary also saw a decline in its indicators, with a RevPAR down by 1.7%, due to a sharp drop in its average price of 8.7% despite an   occupancy rate up to 3.5 points.

The three countries that show the best performances in January 2017, compared to January 2015 are Greece, which led with a RevPAR, thanks to an   occupancy rate which gained 10.4 points, that is to say the highest increase among European countries. Luxembourg also benefits from the overall upward trend in Europe, its RevPAR rose by 17.2 %. This country has the highest average price (117 € HT) for January, up 5.0 % compared to 2016. Spain climbs higher on the podium of the strongest growth once again, after a glorious 2016, with a RevPAR up 12.4 % across the year: in January 2017, its RevPAR was up by 14.1 %.

Double digit growth is also taking place in the United Kingdom, where the RevPAR is up by +12.5%, thanks to a combined increase in its two indicators. Its   occupancy rate increased by 3.9 points to settle at 67.0%, which was the best occupancy rate in Europe, in January when the standard is 57.3%. Within a context where the pound was devaluated with respect to the primary international currencies, in particular the dollar and euro (which reinforces the increase in number of international arrivals), the British average daily rate also show an increase by +5.9% across the month. It should be noted that Great Britain also posted record tourist arrivals in 2016despite concerns connected to the forthcoming Brexit, the country appears to be on the right track.

Portugal, meanwhile, posts a RevPAR up by +13.2%, in keeping with its strong growth in recent months. Finally, the Netherlands also experienced double digit improvement in their results compared to 2016, with a RevPAR up +10%.

Germany, Italy and the Czech Republic are no exception; the three countries posted improved results with RevPARs up by +6.4%, +8.1% and +8.0% respectively. . This is primarily due to growth in their occupancy rate compensating for a drop in the average daily rate -except in Germany where indicators are up (occupancy rate: +2.0 points and average daily rate: +2.8%)- combined with the very regular and moderate rate that it has had for several years. Austria and Poland are part of a comparable dynamic in this month of January, with growth in the RevPAR by +3.5% and +4.7% respectively.

Thus, on a European scale hotel trends in January 2017 are characterized by an overall uptrend, and even double digit growth in the RevPAR in the westernmost part of Europe. The increase in occupancy rate being felt in all countries without exception, supports the positive dynamic that the European hotel industry has been following in this early part of 2017.

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