20 / 28
20
|
2018
|
2019 HOTREC ANNUAL REPORT
2018 in Europe
The Golden Age of ADRs is here
2018 HOTEL RESULTS ACROSS EUROPE,
BY MKG GROUP
Brexit, trade wars, populism and demonstrations... European countries suffered a number of blows in in 2018,
impacting their economic activities and tourist flows. While there have been many challenges and most of them
remain to be resolved, European hoteliers nonetheless show improved performance in 2018, demonstrating a
certain appetite among tourists to continue to visit to the old continent, regardless of the weather.
2018 was the year for ADRs: +3.3% overall
2017 succeeded in combining an occupancy rate up by more than +2% in each segment with a strong increase
in ADR (+2.4% overall). 2017 was the symbolic year of market recovery and renewed confidence in the safety of
European destinations. The hotel business was then emerging from a complicated period bruised by the terrorist
attacks - which unfortunately have continued - and occupancy remained unchanged between 2015 and 2016.
While optimism remains high in 2018, hotel occupancy seems to have reached a more mature level and is
stabilizing at 72.6% thanks to an overall 0.9 point increase. The time has come for the growth inn ADRs for
hoteliers: +2.7% for the 2* hotels, +3.5% for the 3* hotels, +3,3% for the 4* hotels and +4.6% for the 5* hotels. 2018
was the year for ADRs: +3.3% overall.
Regarding occupancy rate, all categories registered a positive change compared to 2017. The highest OR change
was registered by 5* hotels with +1.9 point. Other categories registered an OR change between 0.7 point and 1.1
point.
Although 2018 had started off rather well with a +4.7% increase in RevPAR overall in January and +5.3% in April,
this momentum was halted in May (-1.1% of revenues) with Germany’s poor performance.
Summer allowed the European hotel industry to improve thanks to the Mediterranean region and unspoiled
destinations such as the Netherlands, Austria and Latvia.
The Baltic country had a record year with dynamic occupancy (+3.7 points to 73.6%) exceeding the European
average (72.7%) and average daily rates up by 5.2%. Hoteliers particularly benefited from festivities associated
with the country’s centenary and the Pope’s visit.
Source: OlaKala_destination
SEGMENT Occupancy Rate
ADR
RevPAR
% Change (pts) € VAT excl.
Change (%)
€ VAT excl.
Change (%)
2*
72,9%
0,7
67,0
2,7%
48,8
3,7%
3*
72,4%
1,1
81,2
3,5%
58,8
5,2%
4*
73,1%
1,1
115,3
3,3%
84,3
4,8%
5*
72,7%
1,9
202,6
4,6%
147,3
7,3%
GLOBAL
72,6%
0,9
99,3
3,7%
72,1
5,0%