European hotels: 15-year record in occupancy, demand at its highest since 2000

After a year 2016 marked by a steady occupancy on the European territory, the year 2017 shows results significantly

improved with an occupancy rate increased by more than 2 points. This increase in occupancy together with –

slightly – higher prices (+2.5%), enable RevPAR (revenue per available room) to grow by 5.7%. European hoteliers

had not recorded such a performance since 2011.

All major markets recorded strong returns. The countries bordering the Mediterranean Sea (Port ugal, Spain, Italy and Greece)

continue to benefit from their leisure tourism dynamism allowing them to attract clientele coming from all over Europe. The winner is

the Portuguese hoteliers who show a RevPAR increase of 18.8%, mainly due to average prices growth (+ 14.5%). France and Belgium,

for their part, record a net increase in activity following a year 2016 marked by the impact of attacks that had significantly disturbed

the attractiveness of these two territories (Brussels for Belgium and Paris and Nice for France). The UK did not really suffer from

Brexit so far. In fact, the RevPAR recorded by the hoteliers in the UK rose by 5.6%.

However, a sharp slowdown in demand was felt just after the announcement of Brexit end of June 2017.

Germany and Austria posted improving performances but not in line with other European countries. For Germany, this is

partly explained by the event activity which was very important in 2016. Indeed, several big biannual or triennial fairs in Munich and

D?sseldorf took place in 2016 but not in 2017.

Source : MKG Consulting / OK_destination database

RevPAR variation by country 2017 vs. 2016

The year 2017 was therefore marked by a sharp rise in occupancy to reach the highest level ever recorded since the early 2000s (71.8% in 2017). The increase in activity was observed throughout the twelve months of the year, the last negative variation of RevPAR dating back to October 2016.