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Despite terrorism fear, occupancy increases in European hotels

prague bridgeviewDespite terrorism fear in Europe, European hotels keep up the positive trend with a 0.6 point increase in Occupancy Rate and 1% growth in Average Daily Rate during the first quarter of 2016. However some capitals are affected by the terrorism fear; such as Brussels.

As the city was directly hit by terrorism, Brussels' RevPAR dropped by 7.4%, mostly due to a 5.5 points decrease in Occupancy Rate. Other European capitals, such as London and Berlin, were also affected by these events, raising doubts about European security in the eyes of foreign clientele.

At the same period France (except the capital) regained a growth track especially thanks to RevPAR improvement in the whole country: Reims (+13.1%), Lille (+8.2%) or Marseille (+7.4%), Paris is still recovering from the consequences of the November attacks on tourism with a RevPAR decrease by 9.2%.

Prague has reached a strong RevPAR, with 18.3% growth for this indicator. The organisation of several international medical trade shows in Prague significantly stimulated hotel performance. Amsterdam was also among the frontrunners in the European landscape (+17.1% in RevPAR), as hotels benefitted from the organisation of the Fespa Digital Amsterdam and other international business events. Budapest also registered positive results, with a 10.7% increase in RevPAR due to gains in Occupancy Rate (+2.7 points) and Average Daily Rate (+5.1%). Polish hoteliers benefited from the European men's handball championships at the beginning of the year. Warsaw and Poland report increases in the RevPAR by respectively 1.3% and 6.1% on the first quarter. Austria posted a RevPAR increase by 5.7%, it is better than the capital, Wien (+0.6%).

In Northern Europe, Edinburgh observed a RevPAR increase by 7.5%, a trend totally different from London or Liverpool which decreased by 4.5% and 1.8% respectively.

Finally, performance across Southern Europe continued to improve, boasting higher results than in the 2015 first quarter. RevPAR in Lisbon grew by 2.4%, it strongly increased in Spain with San Sebastian (+34%), Zaragoza (+25.9%), Malaga and Seville (+21.7%), Barcelona (+16%) and Madrid (+12.8%). Rome and Turin are on a positive trend, with RevPAR increase by 2.4% and 4.2%.

These figures are announced at the latest ECM-MKG European Destinations Observatory report which is produced by MKG Hospitality.

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