Europe reported a +4.5% increase in revenue per available room (revpar) for the region, achieving €68.69 in June 2014 year-to-date (YTD). The increase in hotel performance was equally driven by occupancy (+2.0%), and average daily rate (ADR, +2.4%).
Demand growth (+3.1%) picked up compared with the same period last year, while supply consistently grew by +1.0%. London (80.3%) and Paris (79.1%) achieved the highest occupancy levels of all markets within the region in the first six months of 2014. Athens continued to show signs of recovery, with the strongest growth in occupancy (+23.5%) of all key markets to 65.0%.
Moscow, due to recent events in Ukraine and the international sanctions levied as a result, reported the strongest decline in occupancy (-6.0%) after Istanbul (-7.7%), driving an overall negative revpar performance (-5.6%) for the Russian capital YTD.
Copenhagen (+13.0%) and Istanbul (+10.1%) recorded the strongest increases in ADR of all markets within this region, measured in local currency, while Bratislava (-4.6%) and Paris (-5.0%) declined in this measure YTD.
Budapest (+9.8%) expereinced one of the most significant increases in overall hotel performance in Europe, with upwards trends recorded in occupancy and ADR.
Looking south for 2015
According to the August 2014 edition of the STR Global Hotel Market Forecast, covering 29 markets across Europe, Athens, Milan and Rome are expected to see the most significant increase in revpar in 2015.
Glasgow is expected to show one of the fastest declines in hotel performance, off the back of the 2014 Commonwealth Games held in July.
