STR Global: Europe results for June 2010

LONDON -- The European hotel industry posted mixed results in year-over-year metrics when reported in U.S. dollars, euros and British pounds for June 2010, according to data compiled by STR Global.

“The first half of 2010 showed again a split across Europe in performance”, said Elizabeth Randall, managing director of STR Global. “Hotels in Western and Northern Europe led the way in ADR improvements (in Euro-terms), whilst Southern and Eastern European hotels struggled to convert the occupancy gains into improved ADR.

“The month of June was the first month this year we saw ADR in Southern Europe improve over the same month last year”, Randall continued. “Whilst demand growth was stronger in Eastern Europe (10 percent year-to-date) than in Southern Europe (9 percent YTD), the additional supply entering Eastern Europe (+3 percent YTD) limited performance. Southern Europe saw only a 0.7-percent supply increase for the first six months”.

Highlights from key market performers for June include (year-over-year comparisons, all currency in euros):

• Munich, Germany, achieved the largest occupancy increase, rising 26.3 percent to 77.0 percent, followed by Frankfurt, Germany, with a 20.7-percent increase to 66.5 percent.
• Four key markets posted occupancy decreases: Malmo, Sweden (-4.9 percent to 65.2 percent); Birmingham, England (-2.1 percent to 64.6 percent); Gothenburg, Sweden (-1.9 percent to 70.5 percent); and Manchester, England (-0.9 percent to 71.2 percent).
• Four markets reported ADR increases of more than 15 percent: Munich (+35.0 percent to EUR123.10); Tel Aviv, Israel (+25.6 percent to EUR191.92); Geneva (+19.2 percent to EUR230.93); and Stockholm, Sweden (+16.6 percent to EUR119.12).
• Copenhagen, Denmark, fell 22.0 percent in ADR to EUR99.51, reporting the largest decrease in that metric. Venice, Italy, followed with a 16.5-percent decrease to EUR287.60.
• Munich experienced the largest RevPAR increase, jumping 70.5 percent to EUR94.79, followed by Tel Aviv with a 47.7-percent increase to EUR165.05.
• Three markets posted double-digit RevPAR decreases: Copenhagen (-17.8 percent to EUR77.36); Milan, Italy (-11.5 percent to EUR77.68); and Venice (-10.5 percent to EUR195.74).

View Global hotel review for June 2010.