European Hotel Industry: Athens among Key Market Performers for December 2014

NEW Hotel in Athens.

Hotels in Athens, Greece, last month reported the second largest increase in occupancy on a European level, according to data released recently by STR Global on the European hotel industry for December 2014.

Budapest, Hungary, reported the largest occupancy increase, rising 21.3 percent to 60.5 percent. Athens, followed with a 14.5 percent increase to 45.3 percent. The largest occupancy decrease was reported by Tel Aviv, Israel (-5 percent to 59.1 percent).

According to STR Global, three markets reported double-digit average daily rate (ADR) increases: Manchester, England (+14.6 percent to 94.44 euros); Tel Aviv (+14.1 percent to 178.71 euros); and London, England (+13.1 percent to 179.05 euros). Moscow, Russia, reported the only double-digit ADR decrease, falling 35 percent to 83.70 euros during the month.

Budapest recorded the highest largest revenue per available room (RevPAR)  increase during the month (+26.4 percent to 38.43 euros). Athens followed with a 19.6 percent increase in RevPAR to 39.86 euros. Moscow reported the largest decline in RevPAR (-37.7 percent to 46.69 euros).

Year-end 2014 results

Europe achieved a RevPAR growth of 5.8 percent during 2014, one of the highest levels of growth since 2011.

STR Global’s data also showed that last year, ADR improvement was finally realized. For comparison, the 2007 annualised ADR was 107.02 euros. At year-end 2014, with an achieved ADR of 106.09 euros, the gap is closing.

“Europe has yet to reach its ADR pre-recession peaks; however, it is in a much better position today for rate growth in 2015 due to stable supply, increasing demand and higher occupancy levels,” said Elizabeth Winkle, managing director of STR Global.

Year-end 2014, Europe achieved total demand of 1.1 million rooms sold, one of the highest in the last 10 years.

According to Ms. Winkle, Northern Europe was the star performer among the four main regions within Europe.

She also pointed to Southern Europe’s hotel industry performance as a major factor in the continent’s stabilization during 2014. “We’ve seen recovery in Greece, Spain, Portugal and limited growth in Italy,” she said.

STR Global benchmarks hotel data for over 6.4 million hotel rooms worldwide.