H EU Report Europe APRIL 2017
ANALYSIS OF HOTEL RULTS APRIL 2017 hospitality has the wind in its sails Despite slower growth than the previous month, hospitality figures are still pretty good, with 4.3% growth in the RevPAR. The only drawbacks in this favorable trend: calendar effects likely to affect some markets, and difficulty increasing daily rates in certain segments and countries. While growth in hotel occupancy is slower in April 2017 than it was in March; several countries have suffered significant drops, pulling Union's down. Nonetheless, the overall occupancy rate is up by 2.3 points, while +3.2 points was recorded last month; the trend remains generally positive. Nevertheless, in Germany the 'calendar gap' has had a tremendous impact on its performance: the RevPAR fell by 17% in April following double-digit growth in March, bringing growth down to 0.6% since the start of 2017. Aside from a less suitable exhibition calendar, the upcoming general elections (next September) have apparently brought a certain level of passivity. Poland's results are also down, but this is with respect to an excellent month of April last year, notably in Wroclaw, then Capital of Culture. The two other major players on the hospitality scene - the United Kingdom and France - have adopted better strategies and offset Germany's temporary weakness. Despite the tragic terrorist attack near Westminster in London, the country did not suffer any drop in tourism contrary to the other side of the Channel following terrorist attacks in Paris and Nice. British growth is, however, mostly driven by prices (+5.6% in local currency), although the occupancy rate remains on the rise (+1.3 point). France's hospitality sector is regaining its dynamism, although here, too, the 2016 base is partly responsible for the tremendous increase in its RevPAR (about 10%). Belgium is on the same level of growth with a double-digit increase in its occupancy rate. The only thing that needs to be done is to adjust prices to their 2015 level: France's prices remain stable compared to 2016, while Belgium's goes down (-2.7%) enabling it to generate double-digit growth in its occupancy rate. Southern countries are celebrating: Spain confirms its economic and tourism revival with +17% growth across the month featuring the Holy Week. Greece benefits from arrivals that previously went to Turkey. Portugal follows the same positive trends with impressive figures (+31%) although across a smaller base. Hungary and Czech Republic also benefit from double-digit growth. Italy, which had not yet entered the recovery, is finally on the right track (+6.1% over the month, +5.4% year-to-date). The year 2017, traditionally more favorable since it's an uneven one, has not yet benefited from positive repercussions generated by the Venice Biennale, which will take place from May 13 to November 26. There is generally a favorable trend across Europe's hospitality landscape in April, featuring an increase in the occupancy rate. Average daily rates continue to lag behind with an increase by only 1.1% across the month and by 1.6% since the beginning of the year. While 4* hotels have generated a slight price increase (+1.4% in April), this is not yet the case for 3* and 2* hotels, where prices are stable this month (+0.1% and -0.3%), although they have been on the rise since early 2017 (+1.4% and +1.7% respectively). Is this a preview of real growth to be seen this summer? Produced by 2
HOTEL RULTS BY SEGMENT MONTHLY RULTS Occupancy Rate Average Daily Rate ( V excl) RevPAR ( V excl) (pts) (%) (%) 2* 1,2-0,3% 1,3% 3* 2,8 0,1% 4,0% 4* 2,0 1,4% 4,3% 5* 3,8 1,9% 7,7% Global 2,3 1,1% 4,3% YTD RULTS Occupancy Rate Average Daily Rate ( V excl) RevPAR ( V excl) (pts) (%) (%) 2* 2,1 1,7% 5,0% 3* 2,7 1,4% 5,8% 4* 2,9 1,9% 6,5% 5* 3,2 0,8% 6,1% Global 2,7 1,6% 6,0% Note : The indicators are compared to the same period of previous year, i.e. APRIL 2017 vs APRIL 2016 OR, ADR and RevPAR change - Last 24 months 15% 13% 11% 9% 7% 5% 3% 1% -1% -3% -5% 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 11/16 12/16 01/17 02/17 03/17 04/17 Changes ADR Changes OR Changes RevPAR Produced by 3
HOTEL RULTS BY COUNY +4.3% Monthly Results - RevPAR change by country APRIL 2017 vs APRIL 2016 +4.3% +7.3% +9.3% NL +16.1% +15.3% -2.9% -17.1% +21.1% +14.5% -5.2% +14.1% -9.0% Sup. to 10% +6.1% Between 5% and 10% Between 0% and 5% +31.6% +17.1% +16.0% +3.0% Inf. to 0% +35.7% Produced by 4
HOTEL RULTS BY COUNY +3.5 pts Monthly Results Occupancy Rate change by country APRIL 2017 vs APRIL 2016 +1.3 pt NL +5.8 pts -5.9 pts +2.3 pts +5.7 pts +11.6 pts +1.3 pt -5.3 pts +7.9 pts +3.0 pts +4.9 pts -2.6 pts Sup. to 5 pts +3.0 pts Between 2,5 and 5 pts Between 0 and 2,5 pts +7.7 pts +2.8 pts +2.4 pts +7.2 pts Inf. to 0 pt +7.7 pts Produced by 5
HOTEL RULTS BY COUNY -0.8% Monthly Results - ADR change by country APRIL 2017 vs APRIL 2016 +1.1% +5.6% NL +8.3% -2.7% -4.5% -10.7% +8.6% +2.8% +0.1% +10.3% +7.5% -5.4% Sup. to 10% +1.9% Between 5% and 10% Between 0% and 5% +19.0% +12.9% +12.0% -8.3% Inf. to 0% +22.5% Produced by 6
HOTEL RULTS BY COUNY +2.1% YTD Results - RevPAR change by country YTD APRIL 2017 vs YTD APRIL 2016 +9.3% NL +10.1% +4.1% +6.0% +6.4% +6.9% +8.9% -1.2% +0.6% +11.8% +5.2% +9.7% Sup. to 10% Between 5% and 10% Between 0% and 5% +20.8% +10.8% +5.4% +16.7% -3.5% Inf. to 0% +23.9% Produced by 7
HOTEL RULTS BY COUNY -0.0 pt YTD Results Occupancy Rate change by country YTD APRIL 2017 vs YTD APRIL 2016 +2.4 pts NL +4.5 pts -0.3 pt +2.7 pts +5.5 pts +4.1 pts +0.5 pt +5.6 pts +2.3 pts +5.0 pts +3.8 pts +1.3 pt Sup. to 5 pts +3.7 pts Between 2,5 and 5 pts Between 0 and 2,5 pts +5.1 pts +2.4 pts +5.7 pts +1.0 pt Inf. to 0 pt +4.7 pts Produced by 8
HOTEL RULTS BY COUNY +2.2% YTD Results - ADR change by country YTD APRIL 2017 vs YTD APRIL 2016 +5.8% NL +3.3% -0.3% +4.6% +1.6% -0.3% -1.7% +2.8% -3.1% +1.8% +1.4% +1.2% Sup. to 10% Between 5% and 10% Between 0% and 5% +11.4% +6.9% -0.4% +6.0% -5.2% Inf. to 0% +15.0% 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