London Marriott Hotel Park Lane.
United Kingdom reports first decline in room rates since 2016; France registers 11th straight month of RevPAR growth.
LONDON – Europe’s hotel industry reported mixed results in the three key performance metrics during May 2018, according to data from STR.
Euro constant currency, May 2018 vs. May 2017
Europe
- Occupancy: -0.8% to 74.4%
- Average daily rate (ADR): +1.5% to EUR113.35
- Revenue per available room (RevPAR): +0.6% to EUR84.31
Local currency, May 2018 vs. May 2017
United Kingdom
- Occupancy: +0.5% to 79.8%
- ADR: -0.8% to GBP93.31
- RevPAR: -0.3% to GBP74.47
The year-over-year ADR decline was the first for the U.K. since October 2016. That decrease came even as strong demand (+2.0%) outpaced healthy supply growth (+1.4%). London overall performance was negative (RevPAR: -4.5%), mainly due to the largest ADR decrease in the market (-3.7%) for any May since 2009.
France
- Occupancy: +3.2% to 69.6%
- ADR: +1.7% to EUR120.87
- RevPAR: +4.9% to EUR84.18
Another rise in demand (+2.7%) helped continue a trend of improved performance levels in the country. The monthly increase in RevPAR was the 11th consecutive for France. This increase was helped by Upscale hotels, which posted the largest jump in RevPAR (+9.1%) among the class segments.
Portugal
- Occupancy: -2.0% to 77.2%
- ADR: +16.8% to EUR123.11
- RevPAR: +14.5% to EUR94.98
The ADR and RevPAR growth figures were the highest for any May in STR’s Portugal database. Those increases came even as slower demand (-2.0%) lowered occupancy levels. Overall RevPAR growth was helped by Upper Midscale hotels, as RevPAR in the class rose 33.9%.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
