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June 2019: the RevPAR progresses… particularly in southern Europe

June 2018 had been a month of positive performance for the European hotel industry with positive growth in RevPAR by +6.7%, the 2019 vintage is also very promising. RevPAR was up 6.4% across all categories compared to June 2018, or €89.8 ex-VAT. However, it is important to remain vigilant about the evolution of these performances as prices rose by +5.3% overall (110.20€ ex- VAT), while ORs rose more timidly by +0.9 points (81.5%).

Year to date, prices progress by +2.6% (94.1€ex-VAT) and the OR by +0.4 points and the RevPAR by +3.3% (68.3€ ex-VAT).

By segment, it is the budget that does the best with an OR up +1.8 point (78.0%), ADR up +5.3% (53.50€ ex-VAT) for a RevPAR up by +7.8% (41.7€ ex-VAT). In terms of OR performances, the economy segment comes in second with an OR +1.1 point (82.1%), ADR progresses moderately with respect to other categories, +3.7% (79.8€ ex-VAT) and a RevPAR up +5.2% (65.5€ ex-VAT).

The upscale is up +7.8% on the RevPAR (137.1€ ex-VAT) with average daily rates up by +6.7% (166.0€ ex-VAT) and an OR up +0.8 point (82.6%). Finally the midscale brings up the rear with growth in OR by + 0.4 point (81.3%) for an ADR up by +4.3% (101.5€ ex-VAT) leading to growth in RevPAR by +4.8% (82.5€ ex-VAT).

Greece and Luxembourg are vying for the highest RevPAR in terms of absolute value for this month of June or 137.4€ ex-VAT and 136.6€ ex-VAT, respectively.
As for occupancy rate, Greece and the Netherlands post the best score at 87%.

Five destinations post double-digit growth in the RevPAR 

After a poor month of May (RevPAR -10.3%) Italy improves. The RevPAR took off by +15.0% (109 € ex-VAT) fed by growth in OR by +3.2 points (81.5%). Average daily rates up by +10.5% (133.8€ ex-VAT). All segments are up. RevPAR +17.3% on the economy segment with OR up +6.6 points. +11.5% for the midscale (73.7€ ex-VAT) for an OR up +4.5 points. RevPAR +15.5% (136.3€ ex-VAT) for the upscale with an OR up +1.7 point.

Hungary saw its RevPAR increase by +13.4% (83.8€ ex-VAT) thanks to an increase in ADR by +14.5% (98.4€ ex-VAT) while the OR stagnates with -0.8 point after a month of May at +0.2 point.

Portugal pursues its growth trend and hoteliers enjoyed an OR up +1.1 point to increase average daily rates by +11.3% (107.5€ ex-VAT) bringing the RevPAR to +12.8% (92.8€ ex-VAT). All indicators are positive on the territory with the strongest growth in OR for Algarve at +3.2 points.

The RevPAR of Spanish hoteliers is up +12.3% (90.5€ ex-VAT) thanks to combined growth in OR by +1.9 point (82.6%) and average daily rates +9.7% (109.5€ ex-VAT). All segments (in particular economy +4.4 points) saw their OR progress. Madrid outperformed with +37.8% (118.2€ ex-VAT) in the RevPAR benefiting from an OR up 3.5 points for an increase in average daily rates by +32.1% (139.6€ ex-VAT).

France closes up the rear for destinations with +10% growth in RevPAR. France closed 2019 with +10.2% growth in its RevPAR (91.2€ ex-VAT) driven by both an increase in prices by +6.6% (111.9€ ex-VAT) and occupancy rate +2.6 points (81.5%) second best growth in the panel after Italy.

Five challengers with 5 to 10% growth in RevPAR

Luxembourg saw its OR progress by +0.5 point (83.9%) combined with an increase in ADR by +7.8% (163.9€ ex-VAT) the RevPAR posted +8.5% to reach the highest point in the panel 137.6€ ex-VAT. The OR posted its weakest growth January 2019 when it was down .

The Czech Republic maintained an OR at 0.1 point (80.8%) for ADR up +8.4% (82.5€ ex-VAT) and growth in the RevPAR by +8.5% (66.6€ ex-VAT).

For the first time since May 2018, the OR is down -1.4 point (84.4%) in Austria. Hoteliers have nonetheless maintained growth in ADR by +10.1% to reach a RevPAR at 90.9€ ex-VAT up by +8.4%.

The United Kingdom posted growth in RevPAR by +7.4% (99.1€ ex-VAT) backed by an OR up by +1.2 point (86.5%) and ADR up +5.9% (114.6€ ex-VAT). While London, Birmingham, Manchester, Leeds-Bradford and Edinburgh are in the green, Glasgow and Cardiff saw their RevPAR. The OR is steady in Cardiff (+0.4 point) but falls -3.1 points in Glasgow.

Belgium ranks fourth in growth in OR in the panel +1.4 point (81.9%) with ADRs up +3.1% (110.5€ ex-VAT) which allowed the RevPAR to increase by +5% (90.5€ ex-VAT). Brussels is up across all indicators while Ghent stayed afloat thanks to the increase in average daily rates while Liège and Antwerp are in the red across the board.

Some timidly hold steady…

Poland posts the weakest RevPAR in the panel (57.2€ ex-VAT) despite growth by +1.6%. The OR stagnates at -0.4 points (79.8%) and average daily rates pursue their trajectory with +2.1% (71.7€ ex-VAT).

Despite an OR down by -2.1 points, making it nonetheless the highest on the panel at 87%, Greek hoteliers maintain growth in RevPAR by +1.6% (137.4€) - the second highest on the panel – with an increase in prices by +4% (157.8€ ex-VAT).

… while others regress

With RevPAR -1.1%(119.5€ ex-VAT) following a drop in prices by -0.2% (137.3€ ex-VAT), the Netherlands holds the third highest average daily rate on the panel. OR stagnates at -0.8 point but reaches 87.0% which is the best occupancy rate along with Greece.

In Germany, June is negative. With the second strongest drop in OR by -2.2 points (76%), average daily rates simmer at -0.1% (94.5€ ex-VAT). The RevPAR thus drops by -2.9% (71.8€ ex-VAT). All segments are affected by this drop. Only the upscale maintains an OR at +0.3 point. Frankfurt posts the strongest drop in RevPAR -31.5% followed by Hanover and Nuremberg.

Final destination: Latvia loses -6.8% of RevPAR (64€ ex-VAT) with an OR down by -4.0 points (strongest drop for this indicator) despite average daily rates down by -2.4%.

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