LONDON - Europe’s hotel industry posted growth across the three key performance metrics during January 2018, according to data from STR.
Euro constant currency, January 2018 vs. January 2017
Europe
- Occupancy: +3.4% to 58.6%
- Average daily rate (ADR): +2.2% to EUR97.89
- Revenue per available room (RevPAR): +5.7% to EUR57.39
Local currency, January 2018 vs. January 2017
Greece
- Occupancy: -2.7% to 49.4%
- ADR: +8.6% to EUR93.81
- RevPAR: +5.6% to EUR46.36
Despite a decrease in demand (-2.5%) during an already historically low performance month, ADR reached its best level for a January since 2009. Athens, one of the region’s top markets for performance growth in 2017, opened the year with a 13.5% jump in RevPAR, driven mostly by a 10.4% increase in ADR.
Romania
- Occupancy: +3.5% to 51.4%
- ADR: +7.5% to RON314.47
- RevPAR: +11.3% to RON161.79
Due to continued demand growth, occupancy reached its highest level for a January since 2007. Performance was also helped by a fairly stable supply situation, which is common among Central and Eastern European countries. STR analysts also note that performance gains have been common among these countries because they are generally considered safe destinations with stable political environments and growing economies. Also helping performance is more meetings, incentives, conferences and event (MICE) business as well as increased airlift from low-cost carriers and legacy carriers.
United Kingdom
- Occupancy: +0.6% to 63.9%
- ADR: +1.0% to GBP81.14
- RevPAR: +1.6% to GBP51.88
Each of the three absolute values were the highest for any January in STR’s U.K. database. The year-over-year rise in occupancy came even with a 1.1% decrease in London. STR analysts note that the surge in both international and domestic tourism following the Brexit vote pushed occupancy and ADR to peak levels in 2017. As that impact continues to fade, so does the potential for year-over-year growth in comparison to previously high performance values.
Hotels in the Middle East reported mixed January 2018 performance results, while hotels in Africa posted growth across the three key performance metrics, according to data from STR.
U.S. dollar constant currency, January 2018 vs. January 2017
Middle East
- Occupancy: +1.9% to 69.1%
- Average daily rate (ADR): -3.4% to US$170.28
- Revenue per available room (RevPAR): -1.6% to US$117.75
Africa
- Occupancy: +5.7% to 53.4%
- Average daily rate (ADR): +2.6% to US$126.55
- Revenue per available room (RevPAR): +8.4% to US$67.54
Local currency, January 2018 vs. January 2017
Morocco
- Occupancy: +16.3% to 54.1%
- Average daily rate (ADR): +28.5% to MAD129.16
- Revenue per available room (RevPAR): +49.5% to MAD69.90
The year-over-year increase in RevPAR was the first for a January in Morocco since 2014. STR analysts attribute a spike in demand (+16.1%) to the FIA Formula E Championship race in Marrakech as well as Marrakech Marathon.
Nigeria
- Occupancy: +8.6% to 41.4%
- ADR: -11.2% to NGN136.09
- RevPAR: -3.6% to NGN56.38
STR analysts note that Nigeria’s hotel industry continues to be affected by a poor reputation around security concerns in the country. Regardless, the 8.6% year-over-year lift in occupancy was the country’s highest for any January since 2013.
Saudi Arabia
Saudi Arabia
- Occupancy: +6.4% to 59.5%
- ADR: -5.2% to SAR566.34
- RevPAR: +0.9% to SAR336.70
The January school holiday, which fell primarily in February last year, pushed a 16.4% rise in demand. Both occupancy and ADR levels continue to be pressured by supply growth, which rose to 9.3% for the month. As STR reported last week, Saudi Arabia’s hotel development pipeline represents 76% of the existing room supply in the country. However, STR analysts stress the importance of considering the long-term investments being made in tourism and hospitality as part of Vision 2030.
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