European Cities Hotel Forecast – Most Expensive, Fullest & With Highest Revpar

European Cities Hotel Forecast – Most Expensive, Fullest & With Highest Revpar

PwC’s European cities hotel forecast analyses the main trends and future performance outlook for the hotel sector in 19 key gateway European cities and destinations. PwC’s research and forecasts show that growth remains the dominant theme in 2016 and 2017 – albeit weaker than in 2015.

The highest occupancies

In Occupancy rankings, London is the fullest in 2016 and 2017.

Occupancy

Source: Econometric forecast PwC 2016; Benchmarking data: STR Global

 In 2016, the highest occupancies were forecasted to be in three cities, London (despite high supply additions and only a marginal increase forecast), Dublin (with little new supply opening) and Edinburgh (with a high pipeline). Amsterdam and Rome (up from 17 in 2015 to 5th position in 2016) are not far off. Berlin, Paris and Prague follow.

Paris has slipped but is expected to move back up again in 2017 as trading recovers from the impact of terrorist attacks. Absolute occupancy levels have crept upwards for many cities. Frankfurt could break  through the 70% occupancy threshold in 2017. Higher occupancies reflect a structural shift towards more branded budget hotels in some countries as well as access to online distribution channels combined with greater propensity to travel.

The highest ADRs (€)

Paris tops the chart as Geneva slips a notch.

REVPAR

Source: Econometric forecast PwC 2016; Benchmarking data: STR Global

In 2016 the most expensive city forecasted in the survey was Paris which has dislodged Geneva to second place. Next, Zurich, followed by London, Rome, Amsterdam, Barcelona and Frankfurt, which has seen strong growth.

In 2017, most cities, except Geneva and Zurich, see further ADR growth, albeit quite marginal for Brussels or Moscow. Zurich’s forecast ADR growth is 0.5% but the level in euros is lower than 2016 due to exchange rate assumptions. In CHF terms, from CHF 239.8 in 2016, it goes up to CHF 241 in 2017.

In 2017 all the top rankings remain the same as 2016 but there are some changes further down as the chart shows with Dublin and Lisbon moving up the chart and Berlin and Edinburgh moving down.

There is a huge disparity, in euro terms, between those at the top and the bottom of the chart.

The highest RevPARs (€)

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Source: Econometric forecast PwC 2016; Benchmarking data: STR Global

In 2016 Paris is still expected to keep its top position, despite only marginal ADR and occupancy gains. Geneva also stays put in second place in 2016, despite a rates fall and in 2017 London beats it to second place. In 2016 Rome moves to 5th place with a gain of just under €20.

Source: www.pwc.com/hospitality

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