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June 2017: the gap widens between European hoteliers

Following a strong growth trend in May, European hoteliers record lower performances in June 2017. However, this month's figures feature wide gaps with some countries experiencing drops - such as France and Germany - while others display double-digit growth rates at the beginning of the summer season - spearheaded by Greece, Spain and Portugal.

European hospitality records a slight rise in the month of June 2017, with a RevPAR (revenue per available room) up 1.7% compared to the same period last year. These results can be explained by the relatively slow change in occupancy rate (+0.6 point) and in average daily rates (+1%). Nevertheless, this trend conceals major gaps, particularly between the different ranges considered: whereas the budget segment decreases by 5.1%, the upscale range rises by 3.9%. The result is that the average growth in RevPAR is just above the previous year's average performance thanks to the success of the luxury segment which experienced 6.4% growth since the beginning of the year.



June 2017: Change in European countries' hospitality indicators vs. June 2016



Range discrepancies are compounded by geographical gaps in the European hospitality industry in June: some countries experience double-digit growth while others decline. On the positive side, Hungary records the strongest growth, with a RevPAR reaching €70.1 (excluding tax) for an increase by 21.3%. The Eastern European country is followed by three destinations that are among holidaymakers' favorites: Portugal (+19.3%), Greece (+17.7%) and Spain (+16.8%) all benefit from the first weeks of the summer season to increase their prices - in Portugal, average daily rates rose by 18.4% - although their occupancy rates remain steady compared to 2016. 

However, the weakest European country in terms of hospitality in June is Germany, which records a RevPAR down by 8.9%. This is mainly due to the fact that important trade fairs and exhibitions held once every two years or more, were not held in 2017; this is the case of the Berlin Air Show, Automatica Munich and Drupa Düsseldorf, which generally provide strong support for their the host cities' hotel industry. Nearby, France features the other decrease recorded in June 2017: its RevPAR dropped by 4.4%. However, these figures are far from tragic, since they are mostly caused by the poor performance of provincial cities, which received support last year from the Euro 2016 football competition. In Paris, the hotel industry experienced good performance (RevPAR: +5.7%), driven by the success of the French Open as well as the 2017 Paris Air Show, held once every two years in the capital city.

Between these extreme cases, lie other destinations with good results: the RevPAR in Czech Republic soars by 10.1%, as it organized the 2017 EuroBasket Championships from June 16 to 25, with an audience estimated at about 60,000. Maintaining the momentum initiated last month, the United Kingdom maintained steady occupancy despite recent terrorist threats (+0.2 point), but thanks to rapid inflation, its RevPAR experiences an increase by 5.5%. Finally, Belgium also records good RevPAR performance (+13%) with a +10.2% growth since the beginning of the year.

As the continent prepares itself for the high season of leisure tourism, European hospitality reveals major discrepancies in June 2017 that are masked by modest overall results. Nonetheless, some countries anticipated their transition into the summer season and are already fruitful, as in Greece and the Iberian Peninsula. These globally-positive figures offset the poor performances of France and Germany which experienced the slowest growth on a year-to-date basis, with their RevPARs rising by 2% and 1.7% respectively since the beginning of the year.

Also read:



  • May 2017: Europe's hotel industry re-accelerates
  • April 2017: European hospitality has the wind in its sails
  • March 2017: Europe's hotel industry leaves its doubts behind
  • February 2017: the growth dynamic continues for European hoteliers
  • January 2017: overall improvement in the European hospitality industry

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