European hotels trade well as traveller demand grows
Reporting on June trading figures in European hotels, STR noted a 4 per cent increase in occupancy, a 13 per cent increase in average daily rates and a 17 per cent increase in RevPAR for the month.
The month’s results reflected a positive performance for the first half of the year to date, said STR.
“Europe continued with its solid performance for the first six months of this year”, said Elizabeth Randall, managing director at STR Global.
“Across the region we saw equal increases in occupancy and ADR, resulting in a 9-percent RevPAR increase. Despite the reoccurring uncertainties in the wider economic environment, European hoteliers benefitted from the continued improvement in business, MICE and leisure demand”.
In Europe as a whole, average room rates rose to £95, while RevPAR reached £70 and occupancy reached 74 per cent.
In the UK, room rates reached £86 (an increase of just under 7 per cent). RevPAR was just under £70 (11 per cent up), and occupancy rates were 82 per cent (4 per cent up).
Edinburgh hotel market grows
Another report released last week by the hotel consultancy HVS London found that Edinburgh is doing particularly well, predicting a 13 per cent increase in room supply in the city over the next three years.
Figures from STR also reveal that RevPAR for the city’s hotels has risen 6.1 per cent in the 12 months to April 2011.
“The city benefits from a mix of leisure and business tourism so hotel performance remains strong all year round,” said Lara Sarheim, associate director, HVS London.
“As a result the impact of the economic downturn was less severe in Edinburgh and the city has emerged largely unscathed with occupancy, average rate and RevPAR growing year-on-year in 2010 and 2011. Full year occupancy in 2009 and 2010 was the second highest in Europe, beaten only by London.”
Over the next two years, an additional 1,500 rooms are expected to be added to the Edinburgh hotel market.
New hotels due to open in the city include a 97-room Premier Inn, a 107-room Marriott Residence Inn and two brands from InterContinental - Hotel Indigo with 60 rooms and Staybridge Suites with 121 rooms. Travelodge will open two further properties and Motel One will open a hotel in summer 2012. In addition, Rezidor Hotel Group will add over 300 rooms to Edinburgh’s hotel supply when two Park Inn by Radisson hotels open in early 2013.
