Europe's Hotels Trend Toward Full Recovery, Driven by Leisure Demand
Much like the recovery seen already in the U.S., the rebound of travel in Europe is being led by leisure-driven markets and destinations that have been more eager to relax pandemic-era restrictions.
Robin Rossmann, managing director of STR, said that while the U.K. has seen a "stronger, faster recovery" — recording occupancy at roughly 87% of pre-pandemic levels in April — he's confident the rest of Europe isn't far behind.
Rossmann said he's bullish on a quick rebound for European markets that are largely dependent on international travel.
"By the time we get to the middle of May, a lot of these European gateway cities will be 90% to 100% recovered to 2019 levels," he said, speaking during the "Decoding the Data" session at the 2022 International Hospitality Investment Forum.
It's been a tale of two recoveries when it comes to segmentation, with economy hotels leading the way on demand recovery and luxury hotels driving up rate at the highest clip, he said, adding he'd rather be on the luxury side of the equation if he were investing.
"In this environment, I'd far rather have robustness on rate rather than occupancy to combat inflation," he said.