Revenue Up At Europe’s Hotels In 2017

Seven trending hotel news stories that will impact your hotel Revenue Strategy.

1. Revenue gains for Europe’s hotels in 2017

Europe’s hotels fielded a strong performance in 2017, despite challenges in many markets, according to year-end data from STR.

Hotels in the bloc saw average daily rate increase by 3.1% to €110.51, while revenue per available room grew by 5.6% to €79.46. Both metrics were helped by a 2.4% increase in occupancy to 71.9%.

The Netherlands reported record figures for 2017, with absolute occupancy well above historical averages at 74.3%. ADR rose 5.3% to €117.93 while RevPAR jumped 9.4% to €87.57.

Full story at Hotel News Resource.

2. UK hotels post revenue growth in 2017

Hotels across the UK saw increases in all three key performance metrics in 2017, with revenue showing solid growth for the year, according to data from STR.

ADR rose 3.6% to £92.32 while RevPAR jumped 4.1% to £71.49. Occupancy was up 0.5% to 77.4%.

Full story at Hotel Owner.

3. Online bookings surge in Spain

Online hotel bookings in Spain have doubled in the past five years, according to data from SiteMinder and Euromonitor International.

Spain earned €7.3 billion from Internet-based hotel bookings in 2017, 98% more than the €3.7 billion earned in 2012. Direct hotel bookings have growth 113% in the past five years.

Full story at Hotel News Resource.

4. GCC tourism industry looks to China for arrivals boost

The GCC is preparing for an influx of Chinese tourists, with arrivals from China set to grow 21% by 2021 to 2.5 million visitors, according to data from Colliers International.

Saudi Arabia is expected to receive the highest proportionate increase from China, with arrivals set to jump by 35% from 2016 figures. The UAE is predicted to see a 20% uplift from the China market, while Oman’s market share will rise by 12%.

Full story at WTM.

5. RevPAR continues to drop at UAE hotels

An increase in occupancy in 2017 was not enough to rally the UAE’s hotel sector, as rates continued to drop in Dubai and Abu Dhabi, according to the latest data from STR.

While occupancy increased 0.5% to 75.1%, ADR fell 3.8% to AED599.58 and RevPAR dropped 3.3% to AED450. STR stated that supply growth continued to affect hotel performance in the country, as Dubai prepared to host the 2020 World Expo.

Full story at Hotelier Middle East.

6. Brexit impacts UK’s hotel construction sector

Construction costs for the UK’s hotel sector are on the rise, fuelled by uncertainties over Brexit, inflationary pressures and increased supply, according to a recent report by JLL.

However, according to Allan Wilén, economics director at Glenigan, hotel development is in a better place than other construction sectors due to the global growth in travel demand. He predicts an 11% increase in the value of work started in 2018, stating that projects under £100 million will see most positivity.

Full story at Hotel News Now.

7. Mixed fortunes at London properties

Increased supply and static demand caused hotels in London to report mixed fortunes for December, with year-on-year performance down in most key metrics.

Occupancy at the UK’s capital dropped 2.7% to 77.9% and RevPAR fell 2.3% to £115.99. ADR remained static, up 0.4% at £148.85.

Full story at Hotel News Resource.

Stay up on hotel Revenue Strategy news and discuss industry tech trends in the Hotel Revenue Strategy Leaders Group on LinkedIn.

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Sarah McCay Tams, Director of Content, EMEA

Sarah joined Duetto in 2015 as a contributing editor covering Europe, Middle East & Africa (EMEA). In 2017, she was promoted to Director of Content, EMEA. An experienced B2B travel industry journalist, Sarah spent 14 years working in the Middle East, most notably as senior editor – hospitality for ITP Publishing Group in Dubai, where she headed up the editorial teams on Hotelier Middle East, Caterer Middle East and Arabian Travel News. Sarah is now based back in the UK.

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