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2016
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2017 HOTREC ANNUAL REPORT
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Hoteliers who cry, hoteliers who laugh
2016 HOTEL RESULTS ACROSS EUROPE,
BY MKG GROUP
In 2016, the disparities between hotel activity trends have been considerable from one European country to the
next. While some mourned after terrorist attacks that hurt their results, others pursued their growth and even
accelerated it, particularly countries on the Iberian Peninsula and in Central Europe. The global trend is balancing
out on a European scale, with a RevPAR up slightly by +0.8%.
The occupancy rate of hotel chains reached 69.8% in 2016, a stable figure compared to 2015. According
to data from the UNWTO, Europe posted 620 million international arrivals across the year, or a 2% increase
corresponding to just half of standard growth in recent years. The context of insecurity that resulted from the
terrorist attacks in Paris, Brussels and Nice contributed to exacerbating the wariness of certain international
tourism clientele (particularly long haul travelers) with regard to the countries in question. Inversely, others
pursued their development and posted growth in arrivals and even broke new records in terms of international
arrivals, such as the United Kingdom and Spain. On the continent overall, the increase in arrivals -like growth in
supply was moderate, leading to a stable occupancy rate.
Iberian Peninsula and Poland registered a double-digit RevPAR change
Average daily rates, meanwhile, were up slightly by +0.8%, to reach 93.7 euros excluding taxes. While the drop in
prices in certain countries experiencing a difficult economic situation (France and Belgium, which were impacted
by the security risk and slower economic growth), should not be ignored, inversely other countries posted
significant increases, particularly in Southern and Eastern Europe. Italy is an exception due to comparison with
a particularly eventful 2015 (World Expo Milan, Venice Biennale…), and the same may be said of Luxembourg
(Presidency of the EU in 2015). Moreover, increases in prices have been made possible by occupancy rates that
are strong once again.
European hoteliers positioned on the economy segment posted the strongest growth with a RevPAR up by
+2.2%, primarily driven by average daily rate (+2.1%). On the other hand, the upscale hotel industry –which was,
in 2015 as it had been for several years, the engine for Europe’s hotel industry–posts inferior results, with a
RevPAR down (-0.1%) due to an occupancy rate down by -0.3 points, slowing the average daily rate (+0.3%, to
132.3 euros). This degradation in the upscale is due to the drop in international long-haul arrivals: wariness with
regard to certain key European destinations has caused travelers to head to other horizons.
Results at the end of 2016 and this beginning of 2017 suggest favorable perspectives for European hoteliers:
France and Belgium appear to be on their way towards a progressive recovery, while other countries are following
a growth dynamic.
Source: HotelCompset Database
SEGMENT Occupancy Rate
ADR
RevPAR
% Change (pts) € VAT excl.
Change (%)
€ VAT excl.
Change (%)
2*
70,8%
0,3
63,9
2,0%
45,2
2,4%
3*
69,0%
0,2
76,6
1,2%
52,9
1,4%
4*
70,0%
-0,3
109,4
1,0%
76,5
0,6%
5*
67,6%
-1,9
197,6
-2,1%
133,6
-4,8%
GLOBAL
69,6%
-0,1
94,0
0,4%
65,4
0,3%