Compared with February 2015, Europe reported a 1.5% increase in occupancy to 63.1%, a 3.7% rise in average daily rate to 102.98 euros and a 5.2% lift in revenue per available room to 65.01 euros. Compared with February 2015, the Middle East subcontinent reported a 5.3% decrease in occupancy to 70.2%. Average daily rate for the month was down 10.5% to US$182.45. Revenue per available room dropped 15.2% to US$128.12.
The European hotel industry recorded positive results in the three key performance metrics when reported in euro constant currency, according to February 2016 data from STR.
Compared with February 2015, Europe reported a 1.5% increase in occupancy to 63.1%, a 3.7% rise in average daily rate to 102.98 euros and a 5.2% lift in revenue per available room to 65.01 euros.
Performance of featured countries for February 2016 (local currency, year-over-year comparisons):
- Austria reported increases in each of the three key performance metrics. The country’s occupancy increased 2.8% to 55.0%; ADR was up 9.6% to EUR101.33; and RevPAR rose 12.6% to EUR55.74. The early months of the year are typically quiet for Austrian hotels, but rate has driven performance thus far in 2016. February ADR was the highest for the month since 1996, and absolute RevPAR was a February record. The Austria Regional market reported RevPAR growth of 27.2% for the month, which reinforces the optimistic winter forecast by the tourism and leisure department of the Austrian chamber of com
- Bulgaria saw double-digit growth in occupancy (+12.8% to 56.8%) and RevPAR (+21.2% to BGN84.21). ADR in the country was up 7.4% to BGN148.28. The country’s absolute occupancy level was a February record, and RevPAR reached its highest level for the month since 2006. According to STR analysts, Bulgaria seems to have become a substitute tourist destination in the Mediterranean region as Greece deals with a migrant crisis, and Turkey feels the effects of terrorist attacks.
- Italy posted increases across the three key performance metrics: occupancy (+6.8% to 57.1%), ADR (+3.6% to EUR109.89) and RevPAR (+10.6% to EUR62.75). The absolute occupancy level was the highest for the country since 2006, driven by major markets such as Milan and Turin reporting occupancy above 60.0%.
- Turkey experienced decreases in occupancy (-13.4% to 49.9%) and RevPAR (-9.6% to TRY120.25). ADR was up 4.3% to TRY241.14. The country’s unstable geopolitical environment and the disaffection of tourists led to the country’s lowest February occupancy level since 2009. Hoteliers maintained rate increases as the loss of demand is due to security concerns and cannot be helped with lower prices.
Performance of featured markets for February 2016 (local currency, year-over-year comparisons):
- Barcelona, Spain, recorded double-digit increases across the three key performance metrics: occupancy (+14.5% to 67.8%), ADR (+53.9% to EUR152.38) and RevPAR (+76.1% to EUR103.26). February has been a slower month for Barcelona over recent years, but the shift of the World Mobile Congress from March to February boosted performance in the market to its highest levels since 2008.
- Berlin, Germany, reported growth in the three key performance metrics. Occupancy increased 7.4% to 69.6%; ADR was up 6.7% to EUR99.53; and RevPAR grew 14.6% to EUR69.29. The market hosted various events during the month, including Bautec (16-19 February) and the Berlin International Film Festival (11-21 February). The absolute values for each of the three key performance indicators were a February record.
- Bucharest, Romania, posted double-digit increases in occupancy (+10.7% to 61.8%) and RevPAR (+17.3% to RON208.49). ADR was up 6.0% to RON337.29. The market has experienced consistently significant RevPAR increases since June. An increase in hotel demand in the market reflects increased traffic from Qatar Airways through Bucharest Henri Coanda International Airport.
- Edinburgh, Scotland, reported a 1.1% increase in occupancy to 71.4%, a 2.7% rise in ADR to GBP71.56 and a 3.9% lift in RevPAR to GBP51.07. The absolute occupancy was a February record for Edinburgh, and RevPAR reached its highest level since 2007. STR analysts also note that the first two Saturdays of the month produced occupancy above 90.0%.
Hotels in the Middle East reported negative results, while hotels in Africa reported mostly positive results for the three key performance metrics when reported in U.S. dollar constant currency, according to February 2016 data from STR.
Compared with February 2015, the Middle East subcontinent reported a 5.3% decrease in occupancy to 70.2%. Average daily rate for the month was down 10.5% to US$182.45. Revenue per available room dropped 15.2% to US$128.12.
The Northern Africa and Southern Africa subcontinents experienced a 2.5% decrease in occupancy to 56.1%. However, average daily rate was up 8.1% to US$105.16, and RevPAR increased 5.5% to US$58.95.
Performance of featured countries for February 2016 (local currency, year-over-year comparisons):
- Egypt reported decreases in occupancy (-8.6% to 43.1%) and RevPAR (-3.2% to EGP263.16) but a rise in ADR (+5.9% to EGP610.85). With the country’s occupancy falling as a result of political and economic unrest, hoteliers have raised rates to maximize RevPAR. Egypt saw RevPAR grow 23.5% in 2015, creating a high base for comparison. However, since the controversial plane crash in the Sinai Peninsula, demand has pointed downward.
- Jordan saw healthy growth in occupancy (+17.0% to 46.3%) and RevPAR (+8.2% to JOD43.81). ADR was down 7.5% to JOD94.70. STR analysts believe that cheaper rates are positively affecting demand in Jordan, which increased 17.0% in February to significantly outpace flat supply performance.
- Qatar saw decreases across the three key performance metrics: occupancy (-16.4% to 65.3%), ADR (-9.5% to QAR493.92) and RevPAR (-24.4% to QAR322.72). The country’s hotel performance has fluctuated due to supply growth at 4.7% for total-year 2015 and 6.8% for year-to-date 2016. STR analysts also cite a slowing in international arrivals due to a drop in oil prices and an increase in security concerns.
Performance of featured markets for February 2016 (local currency, year-over-year comparisons):
- Beirut, Lebanon, reported a 1.9% decrease in occupancy to 48.4%, an 8.9% drop in ADR to LBP203,858.09 and a 10.6% decline in RevPAR to LBP98,605.75. According to STR analysts, Beirut hotels have struggled since September due to political unrest in the country and rising supply in the market.
- Dubai, United Arab Emirates, saw a 3.5% decrease in occupancy to 82.5% as well as double-digit drops in ADR (-11.6% to AED833.78) and RevPAR (-14.7% to AED687.63). With significant supply growth outpacing demand, occupancy and ADR levels in Dubai have each been affected.
- Johannesburg, South Africa, posted increases across the three key performance metrics: occupancy (+5.1% to 63.1%), ADR (+7.9% to ZAR914.28) and RevPAR (+13.4% to ZAR576.58). Johannesburg has seen positive annual RevPAR performance since 2012, and with 2016 year-to-date demand growth (+8.6%) significantly outpacing supply (-0.9%), February numbers followed that trend. STR analysts point to an increase in international tourist arrivals as a main driver of demand.
Hotels in the Central/South America region recorded positive results in two of the three key performance metrics when reported in U.S. dollar constant currency, according to February 2016 data from STR.
Compared with February 2015, the Central/South America region reported a 2.8% decrease in occupancy to 56.6%. However, ADR was up 10.7% to US$97.73, and RevPAR rose 7.6% to US$55.32.
Performance of featured countries for February 2016 (local currency, year-over-year comparisons):
- Brazil saw occupancy fall 3.4% to 52.3%, but a 5.3% rise in ADR to BRL322.27 pushed a 1.7% increase in RevPAR to BRL168.40. Supply continued to grow in the country, increasing 3.5% in February, while demand remained flat, resulting in the dip in occupancy. According to Oxford Economics, the Brazilian real held up in February despite further credit rating downgrades and forecasted weakness against the U.S. dollar. However, STR analysts note that the ADR growth in the country was well below inflation rate.
- Chile experienced a 3.8% decrease in occupancy to 59.0%. However, ADR was up 5.4% to CLP85,163.94, and RevPAR increased as a result by 1.4% to CLP50,285.40. STR analysts note that ADR has led to nine consecutive months of RevPAR growth in Chile even with a slowdown in the country’s economy. According to Focus Economics, after a discouraging January in Chile, February indicators showed recovery in copper prices and the Chilean peso while business and consumer sentiment rose.
- Ecuador reported decreases across the three key performance metrics: occupancy (-9.5% to 60.4%), ADR (-1.9% to US$101.51) and RevPAR (-11.2% to US$61.35). Demand dropped 9.5% in February, the fourth straight month with a decrease near or above double-digits in the metric. At the same time, supply has remained stable, and the drop in oil prices has had a strong effect on the country’s economy.
Performance of featured markets for February 2016 (local currency, year-over-year comparisons):
- Bogota, Colombia, saw a 9.6% increase in occupancy to 65.8% as well as double-digit growth in ADR (+14.1% to COP319,117.78) and RevPAR (+25.1% to COP209,869.81). The double-digit rise in RevPAR follows the trend of the last three months and eight of the last nine months overall. ADR was the highest on record for Bogota, while occupancy reached its highest level since November 2013.
- Lima, Peru, experienced a 7.7% drop in occupancy to 65.7%, but a double-digit lift in ADR (+12.6% to PEN477.98) pushed RevPAR (+3.9% to PEN313.80) into positive figures. A 7.8% increase in supply coupled with nearly flat demand led to the lowest absolute occupancy level for a February in Lima since 2012. On the other hand, ADR remained in line with previous months and was the highest for a February in the market since 2009.
- Sao Paulo, Brazil, posted increases in each of the three key performance metrics. Occupancy in the market rose 0.7% to 54.0%; ADR was up 5.8% to BRL345.94; and RevPAR increased 6.6% to BRL186.76. STR analysts note that corporate demand remains stable in Brazil.
Tatiana is the news coordinator for TravelDailyNews Media Network (traveldailynews.gr, traveldailynews.com and traveldailynews.asia). Her role includes monitoring the hundreds of news sources of TravelDailyNews Media Network and skimming the most important according to our strategy.
She holds a Bachelor's degree in Communication & Mass Media from Panteion University of Political & Social Studies of Athens and she has been editor and editor-in-chief in various economic magazines and newspapers.
