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May 2018: European hotel industry stopped in its tracks?

While it started the year off well, the European hotel industry is being held back by a declining RevPAR this month.

After recording a positive change in RevPAR by +3.4% in March and +5.3% in April, the European hotel industry is facing an initial mild blow by posting -1.1% on the indicator.

All segments saw a decline in their occupancy rate, leading to an overall drop by -0.9 point. The midscale and upscale categories were the most affected: they recorded respective decreases by -0.9% and -1.2 points in their occupancy rate, resulting in RevPARs down by -1.2% and -2.0%, respectively. Average daily rates remained stable for the midscale segment (+0.1%) and slightly down for the upscale segment (-0.4%). The budget segment, despite a drop in occupancy rate (-0.5 point) saw its prices increase by +3.8%, resulting in a RevPAR up +2.9%.


May was not a good month for Germany, which saw a significant decline in performance: -14.4% due to a combined decline in occupancy (-6.6 points) and average daily rates (-6.5%). Its neighbors the Czech Republic and Austria follow the same trend but at a lower intensity. Austria recorded a -3.1% decline in RevPAR, due to a -4.2 point drop in occupancy rates, while the Czech Republic suffered a 6.2% drop in average daily rates, explaining the -6.6% decline in RevPAR.

Portugal, Hungary and Greece, on the other hand, posted notable performances with more than 6% growth in RevPAR, due solely to a rise in average daily rates for Hungary (+9.3%) and Portugal (+7.3%), which saw a massive influx of foreign investors, while Greece owes its growth to the rise in occupancy rate (+2.5 points) and average daily rates (+5.5%).

Both France and the Netherlands expect average growth in RevPAR by +4.3% each thanks to a combined increase in the other two indicators. While French growth in performance is weaker than a month ago when we saw impressive growth in RevPAR (+7.1%), France has weathered the episode of strikes and long weekends rather well. Spain was impacted by a -1.1 point decrease in the occupancy rate, resulting in a -1.1% decline in RevPAR. The United Kingdom, meanwhile, posted timid growth in RevPAR (+0.4%) thanks to an occupancy rate up +1.5 points.

At the top of the table, Latvia shows dynamism with +14.8% growth in its RevPAR thanks to +3.6 points growth in occupancy rate and +9.6% in prices.

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