heu report - profitroom · 2020-02-06 · overall, the increase in average daily rates is...

EU Report

Europe

AUGUST 2018

H

ANALYSIS OF HOTEL RESULTS – AUGUST 2018

Prosperous for Europe’s hotels

Since the beginning of the year, the overall trend in Europe has remained stable. Some countries that are used to being in the lead are compensating for the decline in occupancy rates by increasing average dailyrates, while less popular destinations are consolidating their leadership positions. The summer season nonetheless ends with good hotel performances.

The positive results observed in August confirm the good summer performance of the European hotel industry. European hotels posted a 1.5-point increase in occupancy rates to 76.6% and average daily ratesrose +3.7% to 112.7 euros. RevPAR was up +5.7% (to 86.1 euros) compared to the previous year, bringing the increase for the first 8 months of 2018 to +3.8%.

All segments saw their performance evolve in the right direction, with substantially similar results. Despite a less impressive increase than observed at the beginning of the summer, the 5* hotels experienced thestrongest growth (+9.4%) followed by the 4* hotels (+5.6%) and the 3* hotels (+4.8%).

This month's champions are Latvia and Hungary, which posted RevPAR growth of +18.3 (for 92.6% occupancy) and +15.9 (for 92.5% occupancy) respectively. It should be mentioned that Latvia's hotel industryrecorded a +14.7% increase in RevPAR and gained 5.7 points in its occupancy rate since the beginning of the year. Other countries have substantially similar revenues: such as Belgium (+12.9% RevPAR) andGermany (+10.1% RevPAR) with increases in their average daily rates (+6.3% and +6.5% respectively).

The leading group remains the same as in July, with France (+7.5%), Greece (+6.4%), Austria (+5.5%) and the Netherlands (+5.4%) which recorded an increase in RevPAR by more than 5%. Occupancy rate explainsthe increase in this RevPAR for France and Austria, while Greece and the Netherlands rely on the increase in average daily rates.

Switzerland and England illustrate a significant growth, despite average daily rates above 100 euros that do not impact occupancy. Glasgow (+11.3%) and Edinburgh (+7.2%) oust the London capital withoccupancy rates close to 95%. Luxembourg posted a good month of August, mainly due to the budget hotel sector (+9.3%), and compensated for less advantageous developments since the beginning of the year(occupancy rate down -2.2 points).

It should be mentioned that Spain has seen a drop in occupancy rates (-4.2%) in recent years, in a context where prices no longer have any impact (-3.8%) and the geopolitical climate in Barcelona (-21.2% ofRevPAR) does not benefit hotel operators. Finally, the year 2018 is improving slightly for Italy thanks to Florence's efforts (RevPAR up +7.7%), which brings the country's RevPAR up +2.2% and improves a timidyear-to-date (RevPAR up +2.7%).

Poland, which had an eventful 2016 and an increase in its RevPAR?? by 7.3% in August 2017, experienced a decrease in these indicators this year with a -1.2% decrease in RevPAR, due to a drop in the occupancyrate (-2.7 points). Malta follows a similar dynamic with a -1.0 % drop in its RevPAR due to a decrease in its occupancy rate (-0.7 points) and its average daily rate (-0.3%). Results over the first eight months of theyear for Poland and Malta were slightly different, with changes in RevPAR by +0.7% and -0.4% respectively.

Overall, the increase in average daily rates is sufficient to boost results, particularly occupancy rates. After another month of growth, Europe's hotel industry is now in a position to maintain solid growth in itsperformance.

EU ReportH Produced by 2


HOTEL RESULTS BY SEGMENT

IN EUROPE – AUGUST 2018

YTD RESULTS

Occupancy Rate Average Daily Rate (€ VAT excL) RevPAR (€ VAT excl)

(pts) (%) (%)

2* 0,8 2,3% 3,4%

3* 1,2 2,9% 4,7%

4* 1,1 1,1% 2,6%

5* 2,3 4,2% 7,6%

Global 1,0 2,3% 3,8%

OR, ADR and RevPAR change - Last 24 months

MONTHLY RESULTS

Occupancy Rate Average Daily Rate (€ VAT excL) RevPAR (€ VAT excl)

(pts) (%) (%)

2* 1,1 2,6% 4,1%

3* 1,7 2,5% 4,8%

4* 2,0 2,8% 5,6%

5* 2,3 6,1% 9,4%

Global 1,5 3,7% 5,7%

Note : The indicators are compared to the same period of previous year, i.e. AUGUST 2018 vs AUGUST 2017

-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

09/16 10/16 11/16 12/16 01/17 02/17 03/17 04/17 05/17 06/17 07/17 08/17 09/17 10/17 11/17 12/17 01/18 02/18 03/18 04/18 05/18 06/18 07/18 08/18

Changes ADR Changes OR Changes RevPAR


HOTEL RESULTS BY COUNTRY


Sup. to 10%

Between 5% and 10%

Between 0% and 5%

Inf. to 0%

European

average

+5.7%

Monthly Results - RevPARchange by countryAUGUST 2018 vs AUGUST 2017

FR

+7.5%

UK

+4.5% NL

+5.4%

BE

+12.9%

DE

+10.1%

PL

-1.2%

CZ

+3.6%

HU

+15.9%

GR

+6.4%

IT

+2.2%

AT

+5.5%CH

+5.3%

ES

-4.2%

PT

+1.4%

TR

+73.9%

MT

-1.0%

LU

+3.6%

LV

+18.3%




Sup. to 5 pts

Between 2,5 and 5 pts

Between 0 and 2,5 pts

Inf. to 0 pt

European

average

+1.5 pt

Monthly Results – OccupancyRate change by countryAUGUST 2018 vs AUGUST 2017

FR

+1.8 pt

UK

+2.4 pts NL

-1.3 pt

BE

+4.2 pts

LU

-1.3 pt

DE

+2.4 pts

PL

-2.7 pts

CZ

-2.4 pts

HU

+4.9 pt

GR

-1.7 pt

IT

-0.1 pt

AT

+3.0 ptsCH

+2.3 pts

ES

-0.3 pt

PT

-1.6 ptTR

+4.6 pts

MT

-0.7 pt

LV

+5.7 pts




Sup. to 10%

Between 5% and 10%

Between 0% and 5%

Inf. to 0%

European

average

+3.7%

Monthly Results - ADR change by countryAUGUST 2018 vs AUGUST 2017

FR

+4.9%

UK

+1.5% NL

+7.0%

BE

+6.3%

LU

+5.4%

DE

+6.5%

PL

+2.4%

CZ

+6.6%

HU

+9.8%

GR

+8.5%

IT

+2.4%

AT

+1.7%CH

+2.3%

ES

-3.8%

PT

+3.2%

MT

-0.3%

TR

+63.6%

LV

+10.9%




Sup. to 10%

Between 5% and 10%

Between 0% and 5%

Inf. to 0%

European

average

+3.8%

YTD Results - RevPAR change by countryYTD AUGUST 2018 vs YTD AUGUST 2017

FR

+6.7%

UK

+1.6% NL

+8.5%

BE

+9.8%

LU

+3.2%

DE

+2.0%

PL

+0.7%

CZ

-0.1%

HU

+7.3%

GR

+10.5%

IT

+2.7%

AT

+2.7%CH

+1.4%

ES

+0.0%

PT

+6.3%TR

+59.5%

MT

-0.4%

LV

+14.7%




Sup. to 5 pts

Between 2,5 and 5 pts

Between 0 and 2,5 pts

Inf. to 0 pt

European

average

+1.0 pt

YTD Results – Occupancy Rate change by countryYTD AUGUST 2018 vs YTD AUGUST 2017

FR

+1.5 pt

UK

+0.6 pt NL

+1.6 pt

BE

+3.0 pts

LU

-2.2 pts

DE

+0.4 pt

PL

-0.3 pt

CZ

+0.7 pt

HU

+0.6 pt

GR

+0.6 pt

IT

+1.1 pt

AT

+0.7 ptCH

+1.0 pt

ES

-0.1 pt

PT

-0.5 ptTR

+8.2 pts

MT

-2.0 pts

LV

+5.7 pts




Sup. to 10%

Between 5% and 10%

Between 0% and 5%

Inf. to 0%

European

average

+2.3%

YTD Results - ADR change by countryYTD AUGUST 2018 vs YTD AUGUST 2017

FR

+4.4%

UK

+0.9%NL

+6.3%

BE

+5.4%

LU

+6.2%

DE

+1.5%

PL

+1.2%

CZ

-1.0%

HU

+6.4%

GR

+9.6%

IT

+1.2%

AT

+1.7%CH

+0.0%

ES

+0.2%

PT

+7.0%TR

+40.6%

MT

+2.5%

LV

+6.0%


METHODOLOGY

1

The report presents the results of corporate brand hotels in Europe. The sample consists of a total of more than 6,500 hotels, representing more than800,000 rooms. The breakdown by segment is as follows: 30% for Budget and Economic hotels, 30% for midscale hotels and 40% for upscale hotels.

Hotels are classified according to the hotel star system: from 1* to 5*. The category of corporate chain hotels are allocated individually according to MKGHospitality’s market expertise and reflect the “marketing classification” in complement to the official rating system(s) of the country (if any). The categorybreakdowns for global supply are taken from MKG Hospitality’s database and from information provided by statistical and/or hotel industry institutions(e.g. associations, unions).

Conventions

2oOccupancy rate: Number of sold rooms divided by number of available roomsoAverage daily rate: Room revenue divided by number of sold roomsoRevPAR: Occupancy rate x average daily price or room revenue divided by available roomsoAvailable rooms: Capacity x number of operating days (within a month)oSold rooms: Capacity x number of operating days x occupancy rateoRoom revenue: Room revenue expressed net of VAT (excluding other types of revenue

such as food and beverage, etc.)

Glossary

heu report - profitroom · 2020-02-06 · overall, the increase in average daily rates is...

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