EUROPEAN REPORT
Eyeing Europe Performance
REVENUE BOOSTS ACROSS THE CONTINENT DON ’ T CORRELATE TO HIGHER MARGINS .
Contributed by MICHAEL GROVE , COO , HOTSTATS
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023 was an incredible year for European hotels . From a top-line perspective , ADR growth of 6.9 % year-on-year and an occupancy uplift of 6.6 percentage points saw RevPAR grow a massive 18.3 %.
Of course , with first quarter 2022 being still dominated by the effects of COVID-19 , Q1 2023 YOY TRevPAR growth was 57.2 % and GOPPAR went from € 13.97 to € 34.67 (+ 148.2 %). The remaining three quarters saw milder growth of 10.1 % in TRevPAR and 9.5 % in GOPPAR .
More recently , the rate of revenue growth has slowed . Q4 showed growth year on year of 5.5 % in TRrevPAR and 2.9 % in GOPPAR , a potential sign that we are heading back to pre-pandemic levels of annual growth . One thing is certain , European hotels are in a much better position than many predicted 18 months
Total Revenue per available room – 12 month moving average
€ 209.62
€ 164.83
€ 141.47
€ 126.11
Dec-19
Northern Europe Western Europe Eastern Europe Southern Europe
ago . ADR is up 27.8 % compared to 2019 and there are no immediate signs that this will fall any time soon .
Unfortunately , the revenue and ADR growth seen in Europe has not converted
Dec-23
€ 229.76
€ 182.71
€ 163.33
€ 142.90
directly to margin improvements across the board . High inflation , surging energy prices , supply-chain challenges and rising labor costs have softened margins and eaten up much of the rate growth . Amsterdam , for
86 hotelsmag . com Mar / Apr 2024