Manchester and Edinburgh hotels among best performers in Europe
RevPAR reached €79.78 in Manchester in October, and €99.14 in Edinburgh.
The two cities helped push overall UK RevPAR up 5.9 per cent to £72.52 in October 2014, compared to October 2013, while the country’s average daily rate (ADR) grew 3.4 per cent to £88.51.
In comparison, Germany’s ADR and RevPAR dropped 3.7 per cent 2.2 per cent respectively in the same period, and Russia saw dips of 1.6 per cent in ADR and 13.5 per cent in RevPAR.
Italy and Spain performed well, with RevPAR growth of 5.6 per cent and 11.7 per cent respectively.
Occupancy grew across all European markets except Russia (-12.1 per cent) in October. In the UK it increased by 2.4 per cent.
Positive performance
“Each month this year, Europe has reported either flat or positive performance in the three key performance metrics”, said Elizabeth Winkle, managing director of STR Global. “October performance was no different. Actual average daily rate (€110.42) for the month was the highest rate we’ve seen in any October in the past 10 years. Compared to last year, ADR increased 3.8 per cent. The ADR growth is driven mostly by Northern Europe, with help from Southern Europe.
“Year to date, Western Europe still is achieving the highest actual ADR levels (€117.34) of all sub-regions.”
UK hotel recovery continues
September STR Global data marked year-to-date RevPAR increases of 10.6 per cent in regional UK and 3.2 per cent in London.
RevPAR grew even faster in markets including Glasgow (+23.9 per cent), Cardiff (+15.6 per cent) and Liverpool (+12.7 per cent).
Though London’s growth rate might seem slow compared to the rest of the country, it is still higher than inflation – the capital is expected to end 2014 with nominal ADR of £147, which is over the £144 it would have been if rate had grown at the rate of inflation since 2008.
In comparison, hotels in regional UK are projected to finish 2014 with nominal ADR of £65 - £12 below what it would have been had it followed inflation rate.
