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European hotel industry growth passes US for first time since 2010

08 March 2016 by
European hotel industry growth passes US for first time since 2010

The European hotel industry has passed the US in growth for the first time since 2010, according to new data from industry insight advisor STR.

Europe's year-end 2015 revpar growth reached 6.9% - a total of $83.9b (£58.8b), while growth in the US hit 6.3% ($78.6b/£58.8b).

Several markets in the region experienced strong overall performances despite key cities, including Paris and London, suffering safety concerns due to terrorist attacks and threats, according to the data. Milan saw revpar growth of 30.3%, with Dublin (23.3%), Prague (14.6%), Amsterdam (12.1%) and Barcelona (11.3%) following.

The figures also showed that European hotels saw high revpar growth in summer, including a 9.9% rise in June, 13% in July, and 8.4% in August.

Both the UK and the US have reported six years of consecutive growth since each suffered significant decline following the financial crisis in 2009, but this is the first time that the European industry has passed the US in terms of growth since 2010.

Robin Rossmann, managing director of STR, said: "Most European hotels had a fantastic 2015 and should be able to carry this momentum through to 2016. While the US has maintained higher performances after recovering from the recession, Europe is definitely catching up and the future looks bright.

"It will be interesting to see how the high projected supply growth in the US will put pressure on hotel occupancy, while Europe's supply growth trend remains slow and steady."

Rossmann is to present at the 19th International Hotel Investment Forum (IHIF) in Berlin on 8 March.

Overseas interest in regional hotel market to increase in 2016 >>


Slower rate of growth predicted for hotels in 2016 >>

London forecast to achieve Europe's highest hotel occupancies in 2016 >>

TagsFinance and Hotels
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