European hotel occupancies and room rates increase for 11 months in 2011

25 January 2012 by
European hotel occupancies and room rates increase for 11 months in 2011

European hotels saw an average increase in occupancy and average daily room rates (ADR) for 11 months of 2011, according to STG Global.

August was the only month that saw a slight decline (-1%) in ADR.

However, two UK cities - Cardiff and Birmingham - reported the largest ADR decreases for the year (-8.1% to £53.84 and -7.8% to £51.78 respectively).

"Overall 2011 was a good year for European hoteliers", said Elizabeth Randall, managing director of STR Global. "Recent months, as well as December's performance, still showed modest but in-line with the usual expected performance increases, compared with the previous year.

"The outlook for 2012 is less certain, as the economic expectations have weakened throughout the later half and worries about the Eurozone continue. Our latest Market Forecast, released in November, predict a positive revenue per available room (revpar) growth across 21 cities out of 34 European cities which we forecast".

Venice in Italy was the only city to report double-digit occupancy increase in 2011, rising 13.8% to 68.1%, while Malmo in Sweden - falling 7% in occupancy to 59.0% - recorded the largest decrease.

Venice also reported the largest growth in ADR, rising 13.1% to £229.43, and revpar, increasing 28.6% to £156.23.

The average occupancy figures for 2011, year-on-year, across Europe was 66.3% (up 3.1%), with ADR at £87.13 (up 4.9%) and revpar at £57.73 (up 8.2%).

Cardiff and Manchester record poor occupancies in January >>

London hotels boosted revpar by 12% in 2012 >>

Scotland and Wales see a dip in hotel occupancies and room rates >>

By Janet Harmer

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