Europe's hotel industry reported strong growth in each of the industry's three key performance metrics through the first quarter of 2017, according to year-to-date data from STR. The report also stated that 12 of Europe's key markets reached record-breaking levels in year-to-date RevPAR.
Compared to the first four months of 2016, Europe recorded that occupancy increased by 3.3 percent to 65.6 percent, while ADR rose by 2.5 percent to $115. Europe also witnessed increases in RevPAR by 5.9 percent to $75.
Hotel performance growth across different regions in Europe can be traced to a number of different factors. First, the devaluation of the British pound has made the U.K. a favorable destination by both domestic and international tourists. However, this has made travel outside of the country less affordable for U.K. residents.
Lisbon, Portugal's performance growth has been gaining force since early 2016. Some of this growth can be traced to ongoing security concerns in other markets, prompting travelers to choose Portugal or Spain. Eastern Europe has been seeing an increase in both business and leisure travel. Budapest, Hungary, for example, benefited from hosting several trade events in early 2017. Meanwhile, there is a lack of new supply entering the market.
These key European markets reported their highest actual April year-to-date RevPAR levels:
- Amsterdam, Netherlands (up 8.8 percent to $115.17)
- Belgrade, Serbia (up 18.7 percent to $47.44)
- Berlin, Germany (up 4.1 percent to $73.12)
- Budapest, Hungary (up 13.5 percent to $53.75)
- Dublin, Ireland (up 6.2 percent to $103.62)
- Edinburgh, Scotland (up 14.4 percent to $77.71)
- Lisbon, Portugal (up 22.1 percent to $75.48)
- London, England (up 11.1 percent to $137.16)
- Manchester, England (up 3.0 percent to $75.04)
- Sofia, Bulgaria (up 20.1 percent to $52.02)
- Tallinn, Estonia (up 14.4 percent to $44.28)
- Vilnius, Lithuania (up 9.1 percent to $39.29)