Europe's hotels report overall performance growth in April

The Westin Excelsior, Rome, Italy. Photo credit: Marriott International

Europe’s hotel industry achieved growth across the three key performance metrics during April 2018, according to the latest data from STR.

Occupancy grew 1.5 percent to 73.2 percent while average daily rate rose 2.9 percent to €108.03. These increases caused revenue per available room to jump 4.4 percent to €79.13, compared to the levels reached in the same period in 2017. The region almost saw significant performance growth across the board on the local level in April 2018, despite a slight dip in ADR at Switzerland’s hotels. 


STR analysts noted that the absolute occupancy level was the highest for any April on record in Italy, rising 1.1 percent to 72.9 percent from the levels reached last April. Additionally, absolute ADR was the highest for an April since 2007, increasing 1.6 percent to €149.96. In response, RevPAR jumped 2.8 percent to €109.32.


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Annual and biannual trade fairs in Milan are leveling out year-over-year performance levels. The Bit International Travel Exhibition in February 2018 caused April's performance to decrease. However, both EuroCucina and Salone Internazionale del Mobile, which ran from April 17 to 22, 2018, helped stabilize performance.  


Switzerland's hotels reported greater increases in both occupancy and RevPAR compared to Italy's performance, but failed to match the country's ADR growth. Occupancy rose 7.9 percent to 62.5 percent, achieving the country's highest absolute occupancy level for an April since 2008. However, ADR fell 1.1 percent to CHF188.30, marking the lowest absolute ADR level for any April on record in the country.  

STR analysts highlight that the three bank holidays—Easter Monday, Näfelser Fahrt and Sechseläuten—helped drive RevPAR growth for the month. RevPAR surged 6.7 percent to CHF117.72 this past April. 


Like Italy, Poland's hotels fared better than Switzerland's in overall performance growth. The country reached its highest absolute ADR level for an April in the country since 2007 with levels rising 5.4 percent to PLN295.96. 

STR analysts attribute strong performance comparisons to the Easter calendar shift from mid-April 2017 and a subsequent rise in April 2018 business demand. Occupancy rose 1.7 percent to 72.3 percent thanks to the increase in business demand, allowing RevPAR to jump 7.2 percent to PLN213.87.

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