by Michael J. Shapiro | October 23, 2017
European hotels enjoyed solid growth in the third quarter, according to lodging-data provider STR, posting increases in every major metric. In Euro-constant currency, which eliminates the effects of exchange-rate fluctuations, average daily rate jumped 4.5 percent over the third quarter in 2016, to €119.17 (about US$139.92 now). Occupancy was up by 2.2 percent, to 79.2 percent, and revenue per available room grew by 6.9 percent, to €94.36 (US$110.79).
Regional highlights included Germany and Portugal, both of which experienced record quarters. For Germany, the numbers were the highest quarterly levels on record for the country. Occupancy climbed by 1.9 percent, to 75.9 percent, and the 2 percent growth in ADR pushed that rate up to €102.21 (US$120.01). RevPAR rose to €77.60 (US$91.11) for the quarter, a 3.9 percent year-over-year spike.
Notably, performance in Germany was driven in large part by bookings on the weekdays, indicating robust corporate business. Berlin posted 82.8 percent occupancy for the quarter, along with a record ADR of €98.07 (US$115.15). Frankfurt's ADR of €117.28 (US$137.70) was its highest for a third quarter, driven by the city's hosting of the biennial Automobile Trade Fair.
In Portugal, both ADR (at €137.65/US$161.62) and RevPAR (€118.89/US$139.59) were the highest third-quarter numbers ever recorded for the country, even though there was a slight dip in occupancy, down 0.5 percent to a still very robust 86.4 percent. Lisbon posted its highest ever third-quarter ADR, at €124.27 (US$145.91). The city hosted the Annual Meeting of the European Association for the Study of Diabetes last month, during which ADR increases ranged from a whopping 75.5 percent to 92.8 percent.