HOTREC Annual Report 2017-2018

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2017| 2018 HOTREC ANNUAL REPORT | 17
2017 in Europe: A year full of dynamism
2017 HOTEL RESULTS ACROSS EUROPE,
BY MKG GROUP
The year 2017 was beneficial for hotel business in the vast majority of European countries. January 2017 was
marked by a significant upturn in occupancy rates and growth on all segments. The growth was mainly due to a
significant increase in occupancy rate from January to April 2017. From May to December 2017, the increase is
explained by an increase in both occupancy rate and average daily rates.
Europe welcomed 671 million international tourist arrivals in 2017
Europe welcomed 671 million international tourist arrivals in 2017, according to the European Tourism
2017-Trends & Prospects report by the European Travel Commission. The continent thus recorded an impressive
8% increase compared to 2016 (620 million) and is once again the world’s number-one destination for the eighth
consecutive year.
Destinations that had been affected by terrorist events in 2015 and 2016, such as the Paris region, Belgium and
Nice, managed to recover from these negative episodes and achieve very encouraging performances in 2017.
Over the year, the cumulative RevPAR of the European hotel industry reached +5.8% growth, driven upwards by
the 4* and 5* hotels, which recorded respectively +6.1% and +6.5% growth, while the 2* and 3* hotels posted
respectively +4.8%and +5.6%growth. Overall, the occupancy rate across all segments increased by 2.3 percentage
points on average over the year, from 69.5% to 71.8%. The increases in the indicators are slightly more visible on
the 4* and 5 categories, with +2.4 points and +2.7 points. The 2* and 3* categories, with occupancy rates up +1.8
and +2.3 percentage points respectively, already have high figures: 72.4% and 71.2% respectively in OR. In parallel
with the same parameters, average daily rates rose by 2.4%: the increases were more pronounced in the 4* and
5* categories (+2.6% and +2.3% respectively) compared to +2.2% for the 2* and 3* hotels. 2017 was punctuated
by dynamic months; January registered the highest growth in RevPAR with +8.5% for all European countries while
the lowest growth was felt in June with +2.5% in RevPAR.
For some countries in the Mediterranean basin and the Iberian Peninsula, 2017 was a particularly good year.
Portugal recorded the best European RevPAR growth performance with +18.8%, due to an increase in occupancy
rate by +2.8 points to 75.7% and +14.5% growth in average room rates to 91.8 euros. Lisbon and Porto achieved
noteworthy success with respectively +21.3% and +18.1% growth in RevPAR.
Observatory MKG Consulting / OlaKala_destination - see
SEGMENT Occupancy Rate ADR RevPAR
% Change (pts) € VAT excl. Change (%) € VAT excl. Change (%)
2* 72,4% 1,8 65,2 2,2% 47,2 4,8%
3* 71,2% 2,3 78,2 2,2% 55,7 5,6%
4* 72,2% 2,4 112,6 2,6% 81,3 6,1%
5* 70,7% 2,7 198,5 2,3% 140,3 6,5%
GLOBAL 71,8% 2,3 97,1 2,4% 69,7 5,8%