Hotels across Europe reported positive results in the three key performance metrics during October, according to the latest data from STR.
From October 2018 to last month, occupancy improved 0.2 percent to 76.8 percent while average daily rate was up 0.8 percent to €115.15. Revenue per available room, meanwhile, grew 1.1 percent to €88.40.
In Prague, occupancy was up 0.3 percent to 86.7 percent year over year, while ADR improved an impressive 4.2 percent to CZK2,680.45 and RevPAR grew 4.6 percent to CZK2,322.95. STR analysts attribute the positive performance levels to minimal supply growth.
International arrivals have played a part in the higher performance, STR analysts noted, as Prague reported 7.9 million overnight arrivals in 2018. That number is expected to grow for 2019 as a whole.
The city’s development pipeline is modest, however, with only a 2.1 percent increase on existing inventory expected by 2021. Still, global companies are eyeing the city for new projects. Just last week, Hard Rock International announced plans to open its first hotel in Prague in 2023, as part of a partnership with local firm EP Real Estate. “Prague is a striking favorite among European capital cities and has experienced great development in its tourism industry in recent years,” said Todd Hricko, Hard Rock's SVP/head of global hotel business development, adding that the project has already been in development for two years.
It was more of a mixed bag for Barcelona, Spain, where ADR was up 9.1 percent to €155.88 and RevPAR grew 6.9 percent to €129.99, but occupancy dropped 2 percent to 83.4 percent year over year.
The absolute ADR level was the highest for an October in STR’s Barcelona database. STR analysts attribute the improvement to medical congresses held in the market, such as the United European Gastroenterology Week and the Euroopean Association of Nuclear Medicine 2019.
As CBRE noted earlier this year, Spain was the second largest hotel investment market in Europe for the 12 months leading to to Q2 2019. Deals in that timeframe amounted to €4.3 billion, up 67.2 percent from last year, with Barcelona accounting for 4.6 percent of activity. In March, Hyatt entered into franchise agreements with an affiliate of Hesperia Hotels & Resorts bring the Regency brand to Spain with the 280-room Hyatt Regency Barcelona Fira and another property in Madrid.