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December 2017: Europe's hotel industry closes the year on a high note

Despite gloomy weather, Europe's hotel industry is looking up: the new impetus at the beginning of the year continued through the end of 2017.

After an encouraging October with a RevPAR up +4.7%, a gratifying November with an increase in its RevPAR by +6.7%, December 2017 presented further growth in the global RevPAR by +7.0%.

Overall, this increase in the RevPAR may be explained by a +2.1 point change in occupancy rate over December 2016 bringing it up to 61.9% together with increase in average daily rates by +3.3% from 90 to 93 euros.

Favorable performances were reported across all hotel categories. The Budget segment stands out nonetheless with the strongest growth in comparison to the other categories. Its RevPAR increased by +9.0% thanks to an occupancy rate up by +2.6 points to reach 59.6% and average daily rates up by +4.2%. The other segments revealed an occupancy rate around 62%, which is higher than that of the Budget segment, but their other indicators showed progress that was slightly lower.


Portugal posts a RevPAR that is flirting with +20% growth. Its occupancy rate remains moderate with an increase from 48.3% to 52.6% on the period, for a +4.3 points increase. Likewise, averaged daily rates rose from 69.7 to 76.7 euros, or a 10.0% increase. One of the “trendy” destinations for 2017 is the city of Lisbon, which boosted Portugal’s tourist arrivals.

Belgium follows a similar positive dynamic with growth in its RevPAR by +17.3%. This outcome is the result of an increase in occupancy rate by +4.3 points and in average daily rates by +9.9%. Brussels is rising back out of the aftermath of the terrorist attacks and Belgium is benefiting from it. On New Years Eve, the Belgian capital recorded an occupancy rate of 93.1%. It also showed strong growth in its RevPAR by +36.5% from 2015 to 2016 and +20.5% from 2016 to 2017 on the last day of those years, according to our last analysis of New Year's Eve results..

Prime European tourist destinations are often in the lead when it comes to occupancy rates. Austria, driven by Vienna during year-end celebrations, saw its RevPAR increase by just +0.3% but has the highest occupancy rate at 76.4%. The United Kingdom also posts slight growth in its RevPAR by +1.5% while its occupancy rate rose to 71.6%. Luxembourg, with an occupancy rate of 70.5%, experienced an increase in its RevPAR by +11.5% thanks to an increase in average daily rates by 9.5%.

Latvia, meanwhile, reveals a RevPAR up by +9.8% thanks to occupancy rate alone that grew by +5.5 points from 55.5% to 61.0%.

This year was favorable to Europe’s hotels and this month of December closes 2017 honorably. We can only hope that this dynamic continues in 2018.

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