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June 2016: weak growth for Europe’s hotel industry

The trend that began last month – resulting in weak growth in European hotel indicators – is gaining strength in June. The balance sheet is nonetheless positive across the continent, with a majority of countries showing positive indicators overall, making up for a minority that post a decline.

Revenue per available room (RevPAR) remained stable in June with just 0.9% growth over the same period last year. Occupancy rate is down slightly from last month (-0.5 points), settling at 78.1%. Average daily rate pursued moderate growth by +1.6%. As they did in May, upscale properties posted a RevPAR down by 1.6% due to an occupancy rate down 0.8 points and an average daily rate that lost 0.6%. Other hotel categories, however, post a RevPAR that is up and positive indicators overall; the best results are produced by the budget categories, where the RevPAR is on a rebound with 6.4% improvement.



June 2016: Monthly results of hotel chains by country



June 2016 saw the gap between markets widen. Spain’s indicators suggest that the economic recovery is growing stronger. Like last month, it is in the lead with a RevPAR up by 17.9%. Poland and Portugal post increases in their RevPARs by 15.7% and 14.2% respectively.

Belgium and Italy posted the strongest drop in their indicators, with RevPARs down by 22.7% and 12.5% respectively on the same period last year. This trend may be explained once again by the security fears that have affected Belgium since the terrorist attacks last March. Its occupancy rate dropped 14.5 points to 70.2%. Like last month, Italy’s drop in performances is related to a calendar effect: in 2015 the country hosted major events such as the World’s Fair held in Milan and the Venice Art Biennale.

In France, Euro 2016 has not brought a distinct improvement in results, but the Hexagon continues to follow its trend towards stabilization with a RevPAR down by -1.3% versus -1.6 last May. On the first six months of the year, the strongest drop in results was experienced by Belgian, Italian and French hoteliers. The RevPAR is down 12.5% in Belgium, 3.6% en France and 3.1% in Italy. At the other end of the spectrum, encouraging results observed in Portugal (+9.9), Poland (+9.8%), Hungary (+9.8%) and the Netherlands (+9.5%) are confirmed. The United Kingdom (+0.6%) and Greece (+0.9%) are the only countries with relatively stable indicators. Time will tell if Brexit will have an impact on performances in the United Kingdom in the months to come.

Since the beginning of the year, the European hotel sector experienced a slight increase in its RevPAR (+1.7%), with an occupancy rate that is relatively stable (+0.2 points) and an average daily rate up slightly by 1.4%. Overall, European countries pursue a positive trend with a few exceptions that are compensated for by the majority that are driven by good results.

Also read:



  • May 2016: slow growth widening gap between European hotel markets
  • April 2016: Europe's hotel industry improves overall, despite a deepening gap
  • 2015 in Europe: hotel KPIs continue to grow, driven by southern countries and CEECs

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