The month of February was satisfactory for European hoteliers, but nothing to get excited about. While the trend may be positive, average daily rates are what is driving the RevPAR up and growth is far from being spectacular. The RevPAR is up +2.2% (58.10€ ex-VAT) compared with February 2018 which proved to be more positive with growth in the overall RevPAR by +4.7%. In February 2019, the occupancy rate progressed slightly on all segments by +0.3 point while prices continued to grow by +1.8%.
Brexit is weighing on the atmosphere in Europe… filling the markets with uncertainty. In addition to the chilling effect on businesses, which are adopting a wait and see attitude, the drop in the Pound Sterling handicaps British clientele who are among the top supply markets for their European neighbors.
Once again it is the budget segment that comes out on top with a RevPAR at +4.2% (28.8€ ex-VAT) driven by slight growth in the OR (+0.7 point) an especially the increase in ADR by +3.0%. Year to date it is also the segment that performs the best with +4.4%. The budget segment posts a RevPAR of +3.4% (44.7€ ex-VAT) thanks to average daily rates up by +2.0% and an OR up by 0.9 point. The midscale loses -0.2 point in its occupancy rate, but nonetheless maintains growth in its RevPAR by +2.4% (56.20€ ex-VAT) thanks to average daily rates up +2.7%.
The upscale segment, meanwhile, remains unchanged, with a stagnating OR and average daily rate up just +1.0% for a RevPAR up +1.0% (84.4€ ex-VAT). The segment’s trend year to date, is practically identical with +2.2% growth on the ADR (versus +1.8% across the month) and +0.3 point for the OR (identical across the month).
The Czech Republic is the only European destination on the panel to report double-digit growth in its RevPAR +12.4% (36.4€ ex-VAT). This is the result of strong growth in the average daily rate (+9.7%) combined with an OR up 1.4 points.
The RevPAR in Poland is up +7.8% (34.50€ ex-VAT) with an increase in average daily rates by +5.3% while the OR is up 1.4 points.
Austria reports good results since Fall 2018 and the best growth in OR by +2.7 points. Prices continue to climb at hotels by +2.2%. Thus, the RevPAR posts...
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