An increased supply of accommodation options appears to have driven hotel demand levels down in Athens in the first quarter (Q1) of the year, according to benchmarking and analytics firm STR.
STR data indicates a 9.2 percent decline in demand in Q1 compared to a strong Q1 in 2018, when the number of rooms sold grew by 5.4 percent and revenue per available room (RevPAR) by 13.2 percent.
STR analysts note that Athens’ absolute Q1 hotel occupancy level was the worst since 2014, attributing the drop to “new inventory”, which was up by 2.0 percent and the largest Q1 rise for quite some time.
STR also cites the surge in short-term rental options as cause for the decline, which does not coincide with the increased number of airport arrivals.
More specifically, first-quarter occupancy levels at Athens hotels dropped by 11.0 percent to 54.5 percent, with average daily rates (ADR) up by 1.9 percent to 103.34 euros and RevPAR down by 9.3 percent to 56.32 euros.
In Europe, meanwhile, occupancy levels increased in Q1 from -0.2 percent to 63.7 percent, with ADR up by 1.6 percent to 101.28 euros and RevPAR stronger by 1.3 percent to 64.56 euros.
Athens’ rival market, Madrid, saw occupancy levels rise by 2.6 percent to 71.1 percent, ADR up by 5.7 percent to 106.79 euros and RevPAR stronger by 8.4 percent to 75.95 euros.