Concluding with strong growth in March, the European hotel industry reported increases in each of the three key performance metrics during the first quarter of 2017, according to the latest data from STR.
Compared toÊthe first quarter 2016, occupancy in Europe increased by 4.1 per cent to 63.5 per cent. The average daily rate also improved by 2.3 per cent to Û100.94, while RevPAR increased by 6.5 per cent to Û64.06.
Baku
With one of the world’s most improved economies in 2017 and rising 13 spots in the World Economic Forum’s global ranking, Azerbaijan’s capital saw massive improvements in hotel performance in the first quarter of the year.
Occupancy increased by +74.9 per cent to 49.5 per cent as RevPAR increased by +119.5 per cent to AZN84.85 since Q1 2016. While ADR increased by +25.5 per cent to AZN171.46 per cent, exchange rate fluctuations made the destination cheaper for many international visitors. STR analysts note the performance growth is particularly impressive considering the market experienced significant supply growth of 18.1 per cent in 2015 and 6.8 per cent in 2016.
Looking ahead, Baku currently has two new hotels in construction and another pair in the planning stage.
Barcelona
March 2017 marked Spain’s 47th consecutive month of year-over-year RevPAR growth, leading RevPAR to rise in Q1 2017Êby +7.2 per cent to Û68.06.
Despite a slight slowdown in occupancy (+2.3 per cent to 67.5 per cent) and ADR (+4.8 per cent to Û100.76) compared with January and February, Spain still saw a 3.6 per cent increase in RevPAR in March.
Barcelona was the standout market in Q1 with a 13.6 per cent increase in RevPAR that was equal parts occupancy and ADR growth.
March was a particularly strong month for Barcelona, with occupancy up 8Êper cent and ADR up 18Êper cent. The Mobile World Congress from Feb. 27 to Mar. 22 boosted performance.
The UK
UKÊhotels continued a run of positive year-over-year performance that started late in 2016. Occupancy increased by +2.6 per cent to 70.6 per cent. ADR (+4.1 percent to £83.73) and RevPAR (+6.8 per cent to £59.12) also saw increases.
March was the strongest growth month of the quarter (RevPAR improved by 8.3 per cent), thanks in part to a favorable Easter calendar shift. STR analysts also attribute performance to the Brexit and the devaluation of the British pound with a subsequent increase in domestic and international hotel demand.
Notably, the Westminster attack on MarchÊ22 did not disrupt performance in London, the country’s largest market.
