According to STR Global, the European hotel industry saw overall revenue per available room growth in the 12-months leading up to January.
Just 15 of the 157 cities and destinations monitored in Europe saw declining demand, despite the economic conditions. buy property in qatar for expats
One of the sponsors of the International Hotel Investment Forum in Berlin, STR Global, reported on the current and potential success of hotels in Europe's major markets. "Our results show that in 2011, European hotel markets benefited from relatively limited new supply and positive demand growth," said Elizabeth Randall, managing director of STR Global, who will speak at the event.
With the exception of Vilnius and Istanbul, the best-performing markets in terms of RevPAR growth in the 12-months to January were primarily driven by occupancy growth. Vilnius saw a 15.6 percent rise in occupancy and a 15.9 percent increase in ADR to LIL199.33.
Istanbul's ADR increased by 30.8 percent (TRY 367.09), but it was also the only top-performing sector where occupancy fell by 4.2 percent (70.0 percent) as more supply entered the market (+4.3 percent).
Yekaterinburg, Russia, one of the best-performing markets, saw its RevPAR rise by 21.3 percent to 38.0 percent in the 12-month period ending in January. Increased occupancy (+21.6 percent) and the recovery in 2011 from the ash cloud, which disrupted most air travel in April and May 2010, drove RevPAR development in Reykjavik, Iceland.
New supply in Preston (+11.1%) and Hull (+4.4%), both in the United Kingdom, resulted in double-digit declines in RevPAR production in Europe's bottom ten destinations. ADR fell to £47.11 (-5.5%) in Preston and £44.60 (-9.3%) in Hull in the 12-months leading up to January.
Except for three, the other markets that saw a drop in RevPAR were all due to lower occupancy and rates. Only Bradford, Essen, and Cardiff saw a decline in occupancy and ADR, resulting in a decrease in RevPAR.
In the 12-month period leading up to January, demand in Essen dropped the most (-9.1%). During the same time, ADR increased by 3.6 percent (€96.89), causing Essen's RevPAR to fall by 5.8%. Cardiff and Bradford both saw an increase in occupancy of 3.1 percent and 0.6 percent, respectively, but fell short on ADR rise, resulting in a drop in RevPAR.
"Our new outlook for 2012 has been updated downward across 39 markets in Europe due to current market conditions," Randall said. "However, we expect demand to rise in Berlin (5.0%), London (4.0%), and Vienna (3.9%), as well as another 27 European markets, in 2012, which is very good news."