Europe reports slight growth for July: STR

American Hotel Amsterdam
The upcoming Hard Rock Hotel Amsterdam American will be a conversion of the former American Hotel. Photo credit: American Hotel

According to data from STR, Europe’s hotel industry reported positive results in the three key performance metrics in July.

Across the region, occupancy was up 1.2 percent to 79 percent year over year. Average daily rate only rose 0.1 percent to €120.92, but revenue per available room was up 1.3 percent to €95.54.

In Milan, occupancy grew 4.8 percent to 75.2 percent year over year; however, ADR was up 11.3 percent to €145.59, driving RevPAR growth of 16.6 percent to €109.54, reported STR.

The absolute RevPAR level was the highest for a July in STR’s Milan database. The company's analysts pointed to double-digit RevPAR increases from July 4 to 17, which were partially due to the Laura Pausini and Biagio Antonacci concerts at the San Siro Stadium (July 4-5), as well as increases in tourism to the city as several art museums and exhibitions opened during the summer season. 

Amsterdam was a different story. Occupancy declined 0.4 percent to 88.1 percent year over year, and ADR fell 6.8 percent to €139.73, which can be credited for the RevPAR drop of 7.2 percent to €123.12, according to the data.

STR analysts attribute the decline in performance to an absence of previous year’s conferences held in July: the Biennial Congress of the European Association for Cancer Research (June 30-July 3, 2018) and the International AIDS Conference (July 23-27, 2018). 

Performance levels also are being affected by the continued supply growth in the market, according to STR. Earlier this month, Dutch hospitality brand CitizenM opened the CitizenM Amstel Amsterdam. The Hard Rock Hotel Amsterdam American, meanwhile, is slated to open in April 2020 on Leidseplein Square. 

The city's restrictive hotel policy could limit the growth of hotel supply from 2020 onward, the STR data indicated.