H EU Report Europe OCTOR 2016
ANALYSIS OF HOTEL RULTS OCTOR 2016 Slight drop in hotel performances; disparities subsist hoteliers posted a slight drop in results this month. However, disparities remain; some market indicators are up while others post a new drop in their results. Disparities also exist in terms of market segmentation. In October 2016, the revenue per available room (RevPAR) recorded on a scale is down slightly by -1.9% with respect to the same period last year. This drop was brought on by a drop in occupancy rate and daily rate by -0.2 points and -1.7% respectively. 5* hotels (RevPAR: -6.3%) and 4* hotels (RevPAR: -2.2%) are the most affected. On the other hand, the RevPAR of the 3* hôtels and 2* hotels are stable respectively +0.6% and -0.5%. This month's best performances go to four countries with double-digit growth in their RevPAR over October 2015: Greece (RevPAR: +23.5% - due to daily rates taking off by +11.8%), Hungary (RevPAR: +20.6%- improvement due to the +11.1 point increase in occupancy rate), Portugal (RevPAR: +13.6%) and Austria (RevPAR: +10.2%). Other countries reported particularly positive performances, especially the Czech Republic and the Netherlands which both show a RevPAR up by +5.0%, along with Spain (+8.3%). Finally, Germany posts a relatively stable trend (RevPAR: +1.2%). On the other hand, compared to October 2015, some countries have experienced a degradation of their indicators, particularly Luxembourg (RevPAR: -3.2%). The situations in Great Britain (RevPAR: -3.2%) and Italy (RevPAR: -16.6%) should be qualified. Due to an exceptional events calendar in Italy in 2015 (with the Venice Biennale and the Expo Milano), the basis of comparison is somewhat deformed; by excluding the cities of Milan and Venice, the rest of Italy posts a RevPAR up by +3.5%. The situation in the United Kindom is more like that in France - where performances in the capital do not truly reflect those in the rest of the country. Outside Greater London, the RevPAR reported is up by +3.6%. Results for Belgium and France are down once again. With the context continuing to be upset by the security situation that continues to weigh on hotel results in these two countries. The French RevPAR is down by -5.7% with respect to the same period in 2015, due to an occupancy rate down by -0.7 points and an daily rate down by -4.8%. Belgium's RevPAR, meanwhile, fell by -16.6%; its occupancy rate is down by -9.8 points and daily rate by -5.4%. On the first ten months of the year, France and Belgium posted a drop in their RevPAR by -5.9% and 15.2% respectively. Austria and the United Kingdom present stable results, of +0.9% for Austria and +0.6% for Great Britain. Italy (for the afore-mentioned reasons) posts a significant drop with a RevPAR down by -6.1% since the beginning of the year. Spain, on the other hand once again places the best among hotel chains in Europe (RevPAR up +13.0%), while Poland (RevPAR: +10.3%) and Portugal (RevPAR: +9.2%) follow the same dynamic. While other countries may post smaller growth, it is nonetheless positive. Produced by 2
HOTEL RULTS BY SEGMENT MONTHLY RULTS Occupancy Rate Average Daily Rate ( V excl) RevPAR ( V excl) (pts) (%) (%) 2* -0,2-0,3% -0,5% 3* 0,3 0,2% 0,6% 4* -0,4-1,6% -2,2% 5* -1,5-4,4% -6,3% Global -0,2-1,7% -1,9% YTD RULTS Occupancy Rate Average Daily Rate ( V excl) RevPAR ( V excl) (pts) (%) (%) 2* -0,1 2,0% 1,8% 3* -0,3 1,4% 1,0% 4* -0,8 1,2% 0,1% 5* -2,9-1,6% -5,5% Global -0,6 0,6% -0,3% Note : The indicators are compared to the same period of previous year, i.e. OCTOR 2015 vs OCTOR 2014 OR, ADR and RevPAR change - Last 24 months 15% 13% 11% 9% 7% 5% 3% 1% -1% -3% -5% 11/14 12/14 01/15 02/15 03/15 04/15 05/15 06/15 07/15 08/15 09/15 10/15 11/15 12/15 01/16 02/16 03/16 04/16 05/16 06/16 07/16 08/16 09/16 10/16 Changes ADR Changes OR Changes RevPAR Produced by 3
+9.6% Monthly Results - RevPAR change by country OCTOR 2016 vs OCTOR 2015-1.9% -3.2% -5.7% NL +5.0% -16.6% -3.2% +1.3% +4.6% +10.2% +1.7% +20.6% -2.8% Sup. to 10% -16.6% Between 5% and 10% Between 0% and 5% +13.6% +8.3% +23.5% -30.6% Inf. to 0% +6.4% Produced by 4
-1.2 pt Monthly Results Occupancy Rate change by country OCTOR 2016 vs OCTOR 2015 +0.0 pt NL +2.7 pts -0.4 pt -0.2 pt -0.7 pt -9.8 pts -0.6 pt +0.4 pt -0.5 pt +1.6 pt +4.6 pts +11.1 pts Sup. to 5 pts -2.0 pts Between 2,5 and 5 pts Between 0 and 2,5 pts +3.2 pts +1.8 pt +7.1 pts -10.3 pts Inf. to 0 pt +1.5 pt Produced by 5
+5.0% Monthly Results - ADR change by country OCTOR 2016 vs OCTOR 2015-1.7% -3.2% NL +1.4% -5.4% -2.5% +2.0% +2.6% +2.2% -4.8% +3.8% +5.2% -3.3% Sup. to 10% -14.4% Between 5% and 10% Between 0% and 5% +9.3% +5.7% +11.8% -17.7% Inf. to 0% +4.5% Produced by 6
-5.6% YTD Results - RevPAR change by country YTD OCTOR 2016 vs YTD OCTOR 2015 +0.6% NL +5.9% +10.3% -0.3% -5.9% -15.2% -1.1% -1.7% +4.2% +6.1% +0.9% +7.1% Sup. to 10% Between 5% and 10% Between 0% and 5% +9.2% +13.0% -6.1% +5.3% -31.5% Inf. to 0% +6.1% Produced by 7
-1.4 pt YTD Results Occupancy Rate change by country YTD OCTOR 2016 vs YTD OCTOR 2015 +0.0 pt NL +1.2 pt +2.1 pts +0.4 pt -0.6 pt -10.2 pts -1.4 pt +0.5 pt +1.2 pt +1.0 pt -2.0 pts -0.6 pt Sup. to 5 pts -0.4 pt Between 2,5 and 5 pts Between 0 and 2,5 pts +1.9 pt +3.0 pts +2.2 pts -11.8 pts Inf. to 0 pt -0.2 pt Produced by 8
-3.8% YTD Results - ADR change by country YTD OCTOR 2016 vs YTD OCTOR 2015 +0.6% NL +4.2% +3.6% +7.1% +0.6% -3.0% -1.9% +0.8% -0.8% +5.3% -0.8% +5.6% Sup. to 10% Between 5% and 10% Between 0% and 5% +6.5% +8.4% -5.5% +2.0% -16.8% Inf. to 0% +6.4% Produced by 9
1 Conventions METHODOLOGY The report presents the results of corporate brand hotels in Europe. The sample consists of a total of more than 6,500 hotels, representing more than 800,000 rooms. The breakdown by segment is as follows: 30% for Budget and Economic hotels, 30% for midscale hotels and 40% for upscale hotels. Hotels are classified according to the hotel star system: from 1* to 5*. The category of corporate chain hotels are allocated individually according to MKG Hospitality s market expertise and reflect the marketing classification in complement to the official rating system(s) of the country (if any). The category breakdowns for global supply are taken from MKG Hospitality s database and from information provided by statistical and/or hotel industry institutions (e.g. associations, unions). 2 Glossary ooccupancy rate: Number of sold rooms divided by number of available rooms o Average daily rate: Room revenue divided by number of sold rooms orevpar: Occupancy rate x daily price or room revenue divided by available rooms o Available rooms: Capacity x number of operating days (within a month) osold rooms: Capacity x number of operating days x occupancy rate oroom revenue: Room revenue expressed net of V (excluding other types of revenue such as food and beverage, etc.) Produced by 10