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Trends

May 2019: a fine month for European hoteliers

+4.3% of the monthly RevPAR across all categories. In the first month of the year the RevPAR increased by more than 4%.

The strongest growth in OR goes to the midscale segment with +1.5 point hoteliers in this segment also signed the best growth in RevPAR +5.2% (70.4€ ex-VAT).  Upscale followed with an OR up +1.4 and a RevPAR up +5.0% to 114.4 € ex-VAT. The economy segment, saw its OR grow by 1.3 point to reach a RevPAR at 55.9€ ex VAT (+3.5%). Slight regression in terms of occupancy for budget hotels that lose 0.9 point. They are the ones that most significantly increase average daily rates (+3.4%) to sustain a RevPAR at +2.0% (34.40€ ex-VAT).

Year to date the trend is also positive with a RevPAR up +2.4% (64.30€ ex-VAT) and an OR up slightly by +0.4 point (to 68.6%).

Double digit growth in the RevPAR for four European destinations

After a dull April, Belgium led the way in terms of growth in performance for May 2019, with RevPAR up +17.8% (€89.3 ex-VAT) driven by a price increase by +15.5% (€114.5 ex-VAT) and a positive OR by up +1.5 point. The period of the European elections attracted many MICE travelers to Brussels, boosting RevPAR by +24.2%, with prices up by 20.6%. It is therefore not surprising that it is the upscale segment that performs best with a RevPAR up +21.7%.

Coming in a strong second, Germany posted the best increase in OR at +6.0 points, with hotels increasing average daily rates by +5.9% for a RevPAR of +15.0%. The biannual Ligna trade fair in Hanover was held from May 27 to 31. As a result, average prices were +35.7%, OR +11.6 points and RevPAR +61.1% for the city. Stuttgart and Frankfurt also had busy events schedules. The first saw its RevPAR up +40.5% with an OR up +11.7 points, the second improved its RevPAR by +36.0% driven by a price increase of +24.5%. All segments benefited from this eventful month, in terms of growth in prices and occupancy.

Accustomed to being in the lead in the ranking, Austria comes in 3rd with a RevPAR up +14.7% driven by an OR up +4.6 points and an 8.5% increase in average daily rates.

After a slow start, Hungary’s RevPAR leapt by +12.4%, with average daily rates up by +12.1% and the OR stagnating at +0.2 point.

In the middle of the table results are disparate

+9.5% RevPAR (75.5€ ex-VAT), an OR up +2 points (76.6%) for Spain and an ADR up by +6.7% (98.6€). The Feria de Seville, held from May 5 to 12, boosted average daily rates up +31.1%, resulting in a +29.2% increase in RevPAR despite a -1.2 point drop in OR. Bob Dylan's concert in Valencia on May 7 could explain the strong performance in the destination that allowed May to close with +21.4% growth in RevPAR and an OR at +3.3 points. Madrid is no exception with a +19% increase in RevPAR driven by average daily rates up +16.7% and an OR up +1.5 point.

Poland's RevPAR rose +7.2% (€54.1 ex-VAT) with the second strongest increase in OR in May by +4.7 points. Prices remain unchanged at +0.7%. Luxembourg also posted a +7.2% increase in RevPAR (€115.7 ex-VAT) with an OR up +2.6 points and average daily rates up by 3.8%.

Prices rose by +7.1% in the Czech Republic allowing the country to grow by +5.3% in RevPAR, while OR was down -1.3 point.

The same scenario occurred in Greece where average daily rates rose by +7.2% sustaining growth in the RevPAR at +2.9% (81.7€ ex-VAT), despite an OR down by -3.2 points.

In Portugal, where the OR increased by 1.3 point with prices steady at +0.7%, the RevPAR was up +2.3% (€85.1 ex-VAT).

Some quiver

RevPAR (83.7£ ex-VAT) down -0.1% with an OR down -0.5 point in the United Kingdom despite stable average daily rates at +0.5%. Only the upscale maintains a positive RevPAR with prices up +1.1%.

In France too, the RevPAR is steady at -0.1% (67.3€ ex-VAT) with an OR at -1.2 point and ADRs holding fast at +1.6%.

The Netherlands are in the red with an OR down by -1.9 point and stable average daily rates at +0.3% for a RevPAR down -2.0% (106.7€ ex-VAT).

Others lose hold

In Latvia the OR is down 3.3 points, leading to a drop in the RevPAR by -3.0% (56€ ex-VAT) despite steady average daily rates at +1.1%.

Italy brings up the rear losing -10.3% in its RevPAR (85.2€ ex-VAT). Hoteliers have adjusted their prices downward by -8.8% while the OR lost -1.3 point. Only the upscale segment remains in the green with prices up by +5.9%.

 

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