Europe’s hotel industry continues along the route towards recovery - MKG Reports
In February, the economic recovery in Europe is having an increasingly strong felt on the hotel results in the continent, after a good start to the month of January.
The return of a stronger demand is leading to 1.9 points of improvement for occupancy rates at properties, where the OR is almost 60%. Such properties were able to resume increasing their average daily rates, which grew by 0.5% across the month. February thus closes with 3.9% growth in Revenue per available room at hotels on the Old Continent, where it is close to 50 euros. The rise in hotel performances concerns almost all categories, except for the Budget category that struggles to reverse the trend and remains stable with respect to last year (-0.1% of the RevPAR).
with 4.6% improvement of its Revenue per available room, which reflects in particular a renewal of corporate spending that has been forecasted by the Global Business Travel Association for the whole of the year 2014.
In terms of geographic zoning, Southern Europe's hotel industry pursues the way torecovery. This month Portugal joined this route with improvement in its RevPAR by 2.5%, thanks to a 1.4 point increase in its occupancy rates. The carnival season played in favor of hotel activity in the region, particularly in Venice whose festivities are legion. Corteges also wound their way through German cities where, combined with traditionally strong business activity, they boosted the Revenue per available room by 7.6% in February.
Moreover, two countries stand out for the remarkable evolution of their hotel results.Business in the Netherlands, particularly in Amsterdam, benefited from the organization of the World Biomass Power Market, which took place in May last year. The RevPAR on the destination thus progressed by 17.1% across the month.
Nonetheless, mention for the biggest change goes to Hungary for improvement by26.1% of its Revenue per available room. As Hospitality-On anticipated in these columns last month (see our article), Budapest in particular should be a dynamic hotel destination this year, for both structural and economic reasons. Austria, meanwhile, continues to follow a downtrend (-3.6% for its RevPAR), as do France (-3.5%) and Sweden (-0.7%), while Poland (+0.3%) continues to be slowed by the rebalancing of its hotel supply following a strong wave of growth in construction for the UEFA European Championship in 2012.