Key insights on Europe's hotel sector
Europe insights from STR's Global Hotel Study
European hotels led the way in growth last year, with several markets seeing record performance levels. What's ahead for the region and its key cities?
After conducting the most extensive research report STR has ever published, we're pleased to share some interesting findings on the European market from our Global Hotel Study: 2017.
Some insights from the European Edition:
- Economic growth has clearly boosted Europe's hotel sector, with occupancy levels at an all-time high for most of the region's key cities. Inbound tourism was up 7.5% in 2017, according to Tourism Economics.
- There has been a considerable shift in the way terror attacks affect hotel performance in European markets, with substantially quicker recovery times following more recent instances.
- Demand growth is in the forecast for most key cities throughout 2018, with notable upticks expected in several recovering markets.
- London hotels had a record-breaking year, with a 4.4% RevPAR increase in 2017, thanks to a 4.1% ADR growth. Although the U.K. capital's pipeline remains substantial, the city's room inventory has grown 29% over the past decade - will performance continue keeping pace?
- Brexit is expected to drive more companies to Amsterdam when it officially takes effect, which should drive further corporate demand. However, the city has put a hold on new hotel openings in the city center, and most recent RevPAR and pipeline growth have been seen in the outskirts. Will Amsterdam be able to adjust to a spike in hotel business?
- Paris has finally started to see recovery from the series of terror attacks that began in January 2015, but there are still challenges ahead, with a considerable pipeline and competition from Airbnb. As of 2016, Paris had the highest number of Airbnb properties available for any city globally.
- Lisbon continues to see a major investment boom, with a high potential for supply growth given the city's infrastructure. On the flip side, the shared accommodation sector, namely Airbnb, is weighing on hotel occupancy levels.
- As one of Europe's top 'short-break' destinations, Madrid has seen a recent uptick in hotel demand from several Asian markets as well as the U.A.E., particularly in group bookings. Is the city on the verge of another big growth year?
- Berlin maintains an extensive pipeline, and the list continues to grow. With a busy event calendar throughout the year, will corporate and leisure demand keep pace with supply growth?
- Belgrade saw double-digit RevPAR growth in 2017, benefiting from an increased presence of American hotel brands as well as improved travel accessibility, including new direct flights New York and Beijing, with eased visa regulations from China.
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About the Global Hotel Study
With detailed insights for more than 100 global markets, STR’s Global Hotel Study explores the highs, the lows, and the factors tipping the scale in each direction for hotel markets around the world. This is your definitive road map for setting strategies for the year ahead and beyond.
The full 110-page version of the report, covering all five world regions, is available at a discounted price.
Other regions available:
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