STR: Europe hotel performance for May 2017
LONDON -- The hotel industry in Europe reported positive results in the three key performance metrics during May 2017, according to data from STR.
Euro constant currency, May 2017 vs. May 2016
- Occupancy: +3.5% to 75.6%
- Average daily rate (ADR): +4.8% to EUR114.35
- Revenue per available room (RevPAR): +8.5% to EUR86.47
Local currency, May 2017 vs. May 2016
- Occupancy: +18.1% to 74.1%
- ADR: +3.6% to EUR103.81
- RevPAR: +22.3% to EUR76.94
May was the third-straight month with double-digit RevPAR growth in the country. According to STR analysts, performance recovery has been evident since November 2016 when Belgium broke a streak of eight-consecutive months with double-digit declines that followed the March 2016 terror attack in Brussels. Returning demand levels have coupled with a low rate of supply growth to push performance up considerably. Brussels, which tends to be a corporate-driven market, reports its highest performance levels on Tuesdays and Wednesdays, and May was no different.
- Occupancy: +1.6% to 76.1%
- ADR: +1.2% to EUR154.97
- RevPAR: +2.8% to EUR117.90
Although Italy recorded growth in both occupancy and ADR, this was the country's lowest year-over-year increase in RevPAR since the beginning of the year. In terms of actual occupancy, however, this was the highest level for the month of May since 2001. Several Italian hotel markets benefitted from hosting events in May, including Verona (RevPAR +62%), which hosted a series of concerts, Bologna (RevPAR +38.5%), which hosted the annual AIC dental congress, and Venice (RevPAR +21.0%), which hosted the Biennale Arte international exhibition.
- Occupancy: +2.4% to 66.9%
- ADR: +14.2% to BGN155.70
- RevPAR: +17.0% to BGN104.24
May was the eighth month in a row with double-digit RevPAR growth in the market. STR analysts note that hotelier pricing power was helped by a second-consecutive month with flat supply. Year to date, RevPAR has grown 19.4% in Sofia.
STR provides premium data benchmarking, analytics and marketplace insights for global hospitality sectors. Founded in 1985, STR maintains a presence in 15 countries with a corporate North American headquarters in Hendersonville, Tennessee, an international headquarters in London, and an Asia Pacific headquarters in Singapore. STR was acquired in October 2019 by CoStar Group, Inc. (NASDAQ: CSGP), the leading provider of commercial real estate information, analytics and online marketplaces. For more information, please visit str.com and costargroup.com.