As terrorism fears fade, French hotels report occupancy, revenue growth

Hyatt Hotels has added five hotels in Europe to its The Unbound Collection by Hyatt brand.
Hotel du Louvre, Paris, France. Photo credit: Hyatt Hotels

February was a good month for Europe's hotel sector, with increases across three key performance metrics. 

According to the latest stats from STR, the region's occupancy improved 2.1 percent year-over-year to 65.5 percent. ADR grew 2.5 percent to €99.87, while RevPAR improved 4.7 percent to €65.43. 

France

Last year, Dirk Bakker, head of EMEA Hotels at Colliers International, predicted that France's travel and hospitality sectors would rebound after the terrorism-driven downturn

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The forecast seems to have been apt: Occupancy in France grew 6.2 percent to 59.6 percent year-over-year in February—its highest February occupancy since 2014—while ADR improved 8.6 percent to €105.08. RevPAR grew an impressive 15.4 percent to €62.62. 

STR noted that February is historically the lowest hotel demand month of the year in France. However, the country reported its highest absolute occupancy level for a February since 2008 and highest absolute RevPAR level for a February since 2014. 

National performance was heavily influenced by Paris’ 12.7 percent increase in RevPAR to €135.18.

Czech Republic

In the Czech Republic, also known as Czechia, occupancy rose 3.6 percent to 56.5 percent in February. ADR dropped 1.9 percent to CZK 1,642.46, while RevPAR grew 1.6 percent to CZK 928.61. 

The number of rooms nights sold (demand) and absolute occupancy level were the highest for any February in STR’s Czech Republic database. STR analysts noted that an "incredibly stable supply situation" continues to help performance in the country. 

At the same time, RevPAR growth was limited as ADR declined for the second month in a row after nine consecutive months of increases to close 2017. 

Overall performance gains have been common among Central and Eastern European countries because they are generally considered safe destinations with stable political environments and growing economies. 

Malta

The news wasn't quite as sunny for Malta, which faced an occupancy decline of 3.2 percent to 58.2 percent in February. ADR dropped 7.6 percent to €90.56, while RevPAR fell 10.5 percent to €52.71.

Those declines may not be painting a full picture, however. Year-over-year ADR comparisons were difficult to match due to the Malta Informal Summit last February, which brought 28 EU heads-of-state. Demand actually rose slightly (+0.3 percent) year over year, but supply growth (+3.6 percent) pulled down occupancy levels. 

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