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April 2019: the sun rises on European hoteliers

In April 2019, hoteliers are smiling again in Europe. Overall, with a RevPAR at +5.3%, no indicator is in the red.

The economy and budget segments performed best with respectively +4.0% and +5.8% growth in RevPAR, driven both by steady price increases (+2.9% in budget and +2.3% in economy) and an increase in occupancy rate. The OR in the entry-level segment increased by +1.9 points while the economy segment grew by +1.2 points.

Midcale instead is a bit behind with the RevPAR up +2.4% (67.30€ ex-VAT) thanks to growth in prices by +2.5% while occupancy stagnates.

For the upscale, the recovery is slower with a RevPAR up by only +0.7% (101.7€ ex-VAT) and a perfectly stable OR and average daily rates up very slightly by +0.6%. 
Hoteliers thus see their indicators progress by +0.6 points in terms of OR, +1.4% for average daily rates for a RevPAR up by 2.2% (70.5€ ex-VAT). Spring school holidays were beneficial to them.

Year to date, the trend is also positive with a RevPAR up +1.9% (61.7€ ex-VAT) for average daily rates up +1.6% and an OR that is steady at +0.2 point. The ranking of RevPAR growth is led by the budget (+3.3%) followed by the economy (+2.8%), mid-range (+2.1%) and high-end (+1.0%) segments.

Austria leaves the competition in the dust

Once again, Austria posted impressive performances with a RevPAR up +18.2% (€85.20 ex-VAT) over the last 12 months, with this indicator performing +11.7%. However, after several months of maintaining average daily rates, hoteliers are increasing their rates as they did in March, for a +14.7% increase. The occupancy rate rose a further 2.5 points to 82.5%. However, it should be noted that there was a slight drop in OR in the mid-scale hotel, with a 0.5 point decline in April 2019. April was a busy month at Easter with the Vienna market, exceptional concerts and also the marathon in the capital. In addition to this leisure calendar, the International Liver Congress was held from 10 to 14 April and also provided the MICE nights.

The Netherlands returns to the growth track after a few mediocre months. The drop in average daily rates in March was not prolonged and instead ADR were up +5.1% to revive the RevPAR which rose +6% (117.50€ ex-VAT). The OR rose a timid 0.7 point.

France progressed one again with the strongest growth in OR across the board with +2.8 points, for 71.5%. The RevPAR gained ground with +4.1% to 63.40€ ex-VAT. Hoteliers were prudent and kept their ADRs so stimulate leisure clientele loisirs to visit the destination destination during the holiday period. Once again, a symposium, the Congress  of General Practice France which was held April 4 to 6 and other professional fairs such as Produrable have also provided hoteliers in the Ile de France with MICE clientele. 

+3% RevPAR for 6 destinations

Hungary, Luxembourg, Portugal, Czech Republic,Greece and Italy all post a that is up, nonetheless, while some OR and ADR are up, for others the growth is more fragile.
April marks the return of growth in arrivals in Greece with an O +2.8 points or 65.6% (best increase in OR on the panel with France). The beginning of the year was sluggish, and the RevPAR returned to growth at +3.3% (€62.2 ex-VAT), with Greek hotels maintaining slightly lower prices at -1.1%. See the destination analysis: Stuck in the middle of the ford, Greece tries to reach the shore.

Luxembourg also saw its occupancy rate grow by +2.7 points to 78.4%. Prices stabilized with +0.3 point (after 11 consecutive months of growth in ADR) leading to a RevPAR up by +3.9% to 103.20€ ex-VAT.

The Czech Republic grew in occupancy by +1.3 point (77.1%) with ADR up by +1.8% for a RevPAR up +3.6% (61.0€ ex-VAT).

Italy also maintains its occupancy rate at +0.9 point (77.1%) with ADR up by +1.7% for a RevPAR up +3.0% to 98.8€ ex-VAT.

Destinations that maintain their revenues by increasing prices follow. Hungary loses -1.6 points for its occupancy rate (80.3%) with average daily rates up by +6.0% the second strongest growth in the panel. The RevPAR thus grew in April by +3.9% to 65.7€ ex-VAT.

The same is true for Portugal where the occupancy stagnates at -0.3 point (73.5%) with growth in the ADR by +4.1% for a RevPAR up +3.7% (69.20€ ex-VAT).

Germany and Spain continue to grow ... at all costs 

Occupancy down -1.2 point (73.5%) and +2.5% for the ADR make it possible to maintain the RevPAR at +0.9%(69.9€ ex-VAT) in Spain. The economy segment comes out with +2 points occupancy rate while the midscale is down -1.8 point and the upscale slips -1.7 point for poorer results in April. It comes as no surprise that the capital of Madrid shows the strongest drop in RevPAR by -12.3%.

Germany is also in the green thanks to prices up +4.3%, occupancy is down -1.8 point (69.7%) for a RevPAR at +1.7% (68.8€ ex-VAT). All segments are affected by this drop with -2.6 points for the midscale, -1.6 point for economy and -0.1 point for upscale. 

A disparate group trail behind

Timid performances for the United Kingdom with stagnation in occupancy by -0.4 point despite a slight drop in prices by -0.2%. The RevPAR thus lost -0.7% to drop to 76.7£ ex-VAT. All segments are impacted by this slight drop in RevPAR, with occupancy up slightly in the upscale by +0.1 point while there is a slight slump in the economy segment which is down -0.5 points and the midscale which is down -0.2 point.

Poland and Latvia lose -2.3% and -4.2% in their RevPAR respectively, with a drop in occupancy by -1.7 point in Poland and -3.4 points in Latvia. Average daily rates remain stable at +0.6% in Latvia and +0.1% in Poland.

Belgium wants to booster occupancy

Belgian hoteliers continue to see their une ADR drop by -8.1% (100 € ex-VAT) despite a recovery in terms of occupancy rate by +1.9 point. The RevPAR thus thus lost -5.9% to 78.10€ ex-VAT. Occupancy dropped in Antwerp whereas it grew in Brussels, Ghent and Liege. Occupancy rates across all segments are up.

A positive month of April suggests the recovery should be confirmed in the weeks and months to come after an already satisfying year 2018 in terms of performances.

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