Europe Hotel Market – H1 2017 Update

Europe Hotel Market – H1 2017 Update


Okay so when we look at Europe as a whole,
it’s had a pretty decent start to the year. Four percent growth from a RevPAR perspective,
bucking the trends of recent years where we have predominately seen that being driven
by rates, for the first half of 2017, it’s been driven by occupancy. So occupancy’s up by three percent and average
rate up by one percent. If we start looking at what’s driving the
performance of the growth across the continent, well it really does depend on where you’re
looking at. So first of all if we look at the UK, certainly
the devaluation of pound sterling has had a big effect on performance. Moving across the channel, looking at the
French and Belgian hotel markets, both of those markets negatively impacted by terror,
of course back in 2016, so we’re seeing some recovery in those markets. Looking at Germany, it’s very much a mix of
both leisure and corporate demand, which is pushing the growth there. So depending on markets, somewhere like Dusseldorf,
very much driven by fair business, obviously corporate demand there, looking at somewhere
like Hamburg this year to date, it’s been far more driven by leisure performance and
demand. If we move further to the south in the Mediterranean
and look at the Iberian Peninsula, the Spanish and Portuguese economies, both of which are
doing fairly well. But then I think one of the key regions and
certainly the star performer from my perspective for the first half of 2017 has been Central
and Eastern Europe. All of the countries across that region are
growing from a RevPAR perspective, and we’ve got double-digit growth, so significant RevPAR
growth in a number of those markets, such as the Czech Republic, Hungary, Bulgaria,
Croatia, and Estonia as well, so a very healthy picture in that part of the continent.

Leave a Reply

Your email address will not be published. Required fields are marked *