The Greek capital was also the first out of six markets that experienced RevPAR growth of more than 10 percent: Athens (+15.2 percent to 66.50 euros); Edinburgh (+14.0 percent to 101.54 euros); Lisbon, Portugal (+13.7 percent to 60.07 euros); Vilnius (+12.4 percent to 45.68 euros); Bratislava, Slovakia (+11.0 percent to 31.83 euros); and Copenhagen, Denmark (+10.5 percent to 79.76 euros).
Overall, the European hotel industry posted mixed results in year-over-year metrics when reported in U.S. dollars, euros and British pounds for July 2013, STR Global said.
“Europe is posting quite positive demand growth in 2013,” said Elizabeth Winkle, managing director of STR Global.
According to STR Global, year-to-date, on a 12-month moving average, the region is achieving record demand levels (1,038,703,967 rooms sold), the highest actual demand they have ever achieved since STR Global began tracking hotel performance in Europe (back to 2000). Year-to-date supply remains at a one-percent growth level and average daily rate is still a bit weak, when compared to YTD 2012.
“In July ADR fell 5.5 percent; the sharpest ADR decrease the region has seen since the financial crisis. Ramadan was in July this year, which had a negative impact on hotel performance, especially since last July was also strong. The euro is still quite strong compared to the pound and U.S. dollar which reduces spending power and limits hoteliers’ ability to increase their rates,” Ms. Winkle concluded.
Highlights from key market performers for July 2013 include (year-over-year comparisons, all currency in Euros):
- Athens, Greece, reported the only double-digit occupancy increase, rising 16.9 percent to 70.6 percent.
- Istanbul, Turkey, fell 29.6 percent in occupancy to 50.5 percent, reporting the largest decrease in that metric.
- Vilnius, Lithuania, rose 15.6 percent in ADR to 59.66 euros, achieving the largest increase in that metric.
- London, United Kingdom (-23.5 percent to 165.14 euros), and Istanbul (-15.5 percent to 141.06 euros), posted the largest ADR decreases for the month.
- Istanbul fell 40.5 percent in RevPAR to 71.29 euros, reporting the largest decrease in that metric.