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February 2018: no shadow on results for Europe's hotel industry

After a satisfactory start to the year, Europe's hotel industry is not stalling midway. It shows progress that remains encouraging albeit disparate from one country to the next on the continent.

Last January, Europe's hotel industry signed strong performance with a change in its RevPAR by +4.7%. This growth continues in February with +5.5%, bringing the RevPAR up to 58.3 euros. It may be explained by a combined increase of +1.6 points for the occupancy rate which rose from 62.9% to 64.6% as well as a +2.8% increase in average daily rates from 87.8 to 90.3 euros.

Growth in the RevPAR is fairly uniform across all segments among chain hotels. The upscale segment produced the highest occupancy rate among all categories with 65.2%, representing +1.3 point growth. With average daily rates up +2.8 points, the category achieved an increase in its RevPAR by +4.9%. Growth in the RevPAR on the midscale and economy segments (respectively +6.5% and +5.3%) may also be explained by a combined increase in occupancy rate by +2.2 points and +1.7 points and average daily rates up +2.9% and 2.6%. The strong growth of the budget category (+6.4% for the RevPAR) may be explained above all by the increase in average daily rates by +4.6% rather than by the increase in occupancy rate (+1.0 point) which reached 61.7% in February 2018.

With RevPARs up by +0.2% to +20.0%, results in European countries in terms of hospitality are positive but heterogeneous. At the peak, Austria posts the strongest growth in RevPAR thanks to the rise in occupancy rate, +5.5 points to reach 59.0% as well as in average daily rates by +8.8%. Greece presents significant change in its RevPAR with +13.0% thanks to the increase in average daily rates by 13.4%. Latvia also posted double-digit growth in its RevPAR (+11.4%), however this growth is due to its occupancy rate that is up by +7.1 while prices dropped -2.7%.

France is among the front-runners with the best RevPAR results showing growth between +6.9% and +8.6%. It is joined by Belgium, Italy, Spain, Hungary, Luxembourg and The Netherlands. In Luxembourg and Spain, the increase in average daily rates prevails at +6.8% and +7.2% respectively. The other countries progressed thanks to combined increases in occupancy and average daily rates.

Portugal, the United Kingdom and the Czech Republic post timid results with growth in the RevPAR that is less than or equal to +1.0%. Portugal and the United Kingdom suffer from a slight drop in occupancy rate by -1.2 points and -0.6 points while the Czech Republic saw its average daily rates lose -3.9%. The results of the front-running countries need explaining, nonetheless. The United Kingdom, for example, while it doesn't show brilliant growth, posts the highest occupancy rate at 74.1%.

While Europe's hotels are progressing at their own rates, they are nonetheless all headed in the right direction.

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