The latest STR report indicates that hotels in Europe reported positive results in the three key performance metrics. Compared with November 2015, Europe reported 4.2 percent growth in occupancy to 70.3 percent. ADR rose 1.5 percent to €107.14, and RevPAR increased 5.8 percent to €75.36.
Here are the latest hotel stats on how three countries and three cities in Europe fared in November, year-over-year.
Italy recorded a 4.9-percent increase in occupancy to 64.1 percent, but a 7.3-percent decline in ADR to €108.11 dragged the country's RevPAR down 2.7 percent to €69.33. In particular, Milan's ADR dropped by more than 18 percent. Smaller markets like Sicily, Veneto and Emilia Romagna each posted RevPAR increases for the month.
The Netherlands saw a 2.9-percent growth in occupancy to 70.2 percent and a 1.4-percent increase in ADR to €109.49, while RevPAR grew 4.3 percent to €76.83. The absolute ADR level was the highest for a November in the country since 2008.
Spain posted increases in both occupancy (+1.0 percent to 70.8 percent) and ADR (+3.9 percent to €98.08), resulting in 4.9 percent growth in RevPAR to €69.44. The absolute occupancy level was the highest for a November in Spain since 2000. In addition, the country has now reported 43 consecutive month of year-over-year RevPAR growth. Intriguingly, STR analysts found that November’s performance was largely driven by hotels in regional areas, while the two major cities, Madrid and Barcelona, both reported flat performance.
Berlin, Germany, posted record highs for the month of November across all key performance levels: occupancy (+4.7 percent to 81.1 percent), ADR (+1.5 percent to €93.42) and RevPAR (+6.3 percent to €75.76). Breaking down the market’s performance by submarket, the Berlin Surroundings Area recorded double-digit growth in RevPAR. While data is not yet available to analyze the impact of the terror attack of December 19, events of this nature tend to hurt hotel markets in the short term. (STR will release preliminary December data for Berlin during the second week of January.)
Dublin, Ireland, reported a 3.7 percent decline in occupancy to 78.3 percent but a 3.8 percent increase in ADR to €121.03. As a result, RevPAR was flat at €94.80. While this marked Dublin’s highest actual ADR for any November on record, demand declined 2.8 percent compared with November 2015—perhaps a sign that, as warned, the city needs more hotel rooms to satisfy growing demand, or that demand may dry up.
London, United Kingdom, recorded its strongest month of 2016 in terms of growth with an 8.0 percent increase in RevPAR to £130.33. This was due to a 5.3 percent lift in occupancy to 85.9 percent and a 2.6 percent increase in ADR to £151.65. Notably, in November 2015, the city was affected by a downturn in tourism due to the terrorist attacks in Paris.