November 2018, Europe’s hospitality industry holds its course

Once again the economy segment posted the best growth compared to November 2017 with +1.7 point for the OR and +3% for the ADR leading to a +5.5% increase in the RevPAR. The upscale segment follows with +1.4 point for the OR, +3.4% for the ADR, and +5.3% for the RevPAR. The budget and midscale supply also participate in this growth with +3.2% and +5.2% in the RevPAR respectively. It should nonetheless be observed that the offer in the entry range of products lost 0.8 pt in terms of OR but nonetheless progressed thanks to a +4.4% increase in its ADR.

Austria continues to lead the way in performance gains with an OR that increased by +8.3 pts with a ADR at +11.5%, allowing the RevPAR to rise by +24.2% to €78.6 excluding VAT. The Christmas Market, the opening of the carnival which offers the opportunity to waltz and the Vienna Festival of Modern Art only partly explain the good health that has persisted since the start of the school year in September. The city of Salzburg reported a +20% increase in RevPAR at the YTD and Vienna also reported an increase by +6.4%.

Latvia recorded a RevPAR up +15.8% to reach €38.9 excluding VAT, driven by an ADR up +9.9% and a OR up +3.3 points. The Baltic State already recorded an increase in RevPAR by +8.1% in October and has posted strong growth since the beginning of 2018.

Belgium maintained good growth with a RevPAR up 11% to reach €87.2 excluding VAT, driven by average daily rates up 5.4% and an OR up 4 points. The high-end, economy and mid-range segments increased by +12.7%, +10% and +9.6% respectively. While Antwerp and Liège lost -5.6% and -1.7% in RevPAR, Brussels (€99.9 excluding VAT) and Ghent (€98.4 excluding VAT) were...