Download - HEU Report...NOVEMBER 2016 vs NOVEMBER 2015 FR +3.7 pts UK +3.1 pts NL +3.1 pts BE +4.4 pts LU +1.9 pt DE +1.9 pt PL +3.5 pts CZ +6.9 pts HU +10.0 pts GR +8.4 pts IT +3.5 pts AT CH

EU Report

Europe

NOVEMBER 2016

H

ANALYSIS OF HOTEL RESULTS – NOVEMBER 2016

Results have improved overall for Europe's hotels

Compared to November 2015, the sector's European professionals post overall improvement in their results. This upturn may be observed across all sectors and alsoin terms of occupancy and average daily rates. This positive year-end trend may be explained in part by a comparatively bad year in 2015.

European hoteliers posted a RevPAR up by +4.5% in November 2016, due to a rebound in the occupancy rate by +3.1 points and a stable average daily rate comparedto November 2015. Except 5* hotels, all hotel ranges benefit from this improvement, and more particularly the 2* hotels that posts a RevPAR up by +7.1%. This monththe 3* segment has observed an increase in its RevPAR (+5.8%) driven by an increase in its occupancy rate (+3.6 points).

In general, all European countries - with exception to Italy because of its particularly full events calendar in 2015 (Venice Biennale, MilanExpo), and Luxembourg- postpositive indicators.

The best results go to Portugal where the RevPAR is up significantly by +24.9%, through a combined increase in occupancy rate (+5 points) and average daily rate(+14.9%). Greece also posted a strong increase in its indicators; its RevPAR is up 23.5%. Hungary and the Czech Republic also post fine results: their RevPARs are uprespectively by 14.6% and 14.0%, a dynamic that has grown stronger in recent months. Poland is continuing in this direction with double-digit growth, and a RevPARup by 10.5%. Spain, the United Kingdom and Germany also did well with RevPAR's up by 9.8%, 8.6% and 5.7% respectively.

While their figures were down in the first months of the year, France and Belgium both post results that are up in November, which may be explained by a November2015 that was particularly hard hit by the terrorist attacks in Paris and Brussels with repercussions on French and Belgian markets.

Compared to November 2015, on the first eleven months of the year, throughout Europe hoteliers have posted stabilization in their RevPAR. Only the 5* hotels wereposted any drop in this indicator (-5.6%). Three countries posted double-digit growth: Spain (RevPAR: +12.6%), Portugal (RevPAR: +11.1%) and Poland (+10.3%). Thetrend grew over the months and strengthened the positive dynamic in these countries. The United Kingdom and Austria, meanwhile, present a RevPAR up slightly by1.2 and 1.0% respectively. Belgium (RevPAR: -13.4% on the period from January to November 2016), France (RevPAR: -5.3%), Italy (-6.1%) the Luxembourg (RevPAR: -1.2%) had a difficult 2016, while the other countries, especially Germany (+4.4%) followed an uptrend.

EU ReportH Produced by 2


HOTEL RESULTS BY SEGMENT

IN EUROPE – NOVEMBER 2016

YTD RESULTS

Occupancy Rate Average Daily Rate (€ VAT excL) RevPAR (€ VAT excl)

(pts) (%) (%)

2* 0,1 2,0% 2,2%

3* 0,0 1,3% 1,2%

4* -0,5 1,0% 0,4%

5* -2,6 -2,0% -5,6%

Global -0,3 0,4% 0,0%

OR, ADR and RevPAR change - Last 24 months

MONTHLY RESULTS

Occupancy Rate Average Daily Rate (€ VAT excL) RevPAR (€ VAT excl)

(pts) (%) (%)

2* 3,0 2,5% 7,1%

3* 3,6 0,1% 5,8%

4* 3,0 0,2% 4,7%

5* 2,2 -5,0% -1,8%

Global 3,1 -0,3% 4,5%

Note : The indicators are compared to the same period of previous year, i.e. NOVEMBER 2015 vs NOVEMBER 2014

-5%

-3%

-1%

1%

3%

5%

7%

9%

11%

13%

15%

12/14 01/15 02/15 03/15 04/15 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

Changes ADR Changes OR Changes RevPAR


HOTEL RESULTS BY COUNTRY


Sup. to 10%

Between 5% and 10%

Between 0% and 5%

Inf. to 0%

European

average

+4.5%

Monthly Results - RevPARchange by countryNOVEMBER 2016 vs NOVEMBER 2015

FR

+1.0%

UK

+8.6%NL

+5.0%

BE

+8.7%

DE

+5.7%

PL

+10.5%

CZ

+14.0%

HU

+14.6%

GR

+23.5%

IT

-5.4%

AT

+4.9%CH

-9.1%

ES

+9.8%

PT

+24.9%

TR

-7.7%

MT

-25.1%

LU

-1.3%

LV

+7.5%




Sup. to 5 pts

Between 2,5 and 5 pts

Between 0 and 2,5 pts

Inf. to 0 pt

European

average

+3.1 pts

Monthly Results – OccupancyRate change by countryNOVEMBER 2016 vs NOVEMBER 2015

FR

+3.7 pts

UK

+3.1 pts NL

+3.1 pts

BE

+4.4 pts

LU

+1.9 pt

DE

+1.9 pt

PL

+3.5 pts

CZ

+6.9 pts

HU

+10.0 pts

GR

+8.4 pts

IT

+3.5 pts

AT

+4.0 ptsCH

-2.1 pts

ES

+2.9 pts

PT

+5.0 ptsTR

-1.8 pt

MT

+4.1 pts

LV

-1.0 pt




Sup. to 10%

Between 5% and 10%

Between 0% and 5%

Inf. to 0%

European

average

-0.3%

Monthly Results - ADR change by countryNOVEMBER 2016 vs NOVEMBER 2015

FR

-5.1%

UK

+4.5%NL

+0.6%

BE

+2.0%

LU

-3.6%

DE

+3.1%

PL

+4.9%

CZ

+2.5%

HU

-1.2%

GR

+7.8%

IT

-10.3%

AT

-0.7%CH

-6.1%

ES

+5.2%

PT

+14.9%

MT

-29.5%

TR

-4.9%

LV

+9.3%




Sup. to 10%

Between 5% and 10%

Between 0% and 5%

Inf. to 0%

European

average

+0.0%

YTD Results - RevPAR change by countryYTD NOVEMBER 2016 vs YTD NOVEMBER 2015

FR

-5.3%

UK

+1.2% NL

+5.9%

BE

-13.4%

LU

-1.2%

DE

+4.4%

PL

+10.3%

CZ

+6.7%

HU

+8.9%

GR

+6.5%

IT

-6.1%

AT

+1.0%CH

-2.3%

ES

+12.6%

PT

+11.1%TR

-30.1%

MT

+3.5%

LV

-4.6%




Sup. to 5 pts

Between 2,5 and 5 pts

Between 0 and 2,5 pts

Inf. to 0 pt

European

average

-0.3 pt

YTD Results – Occupancy Rate change by countryYTD NOVEMBER 2016 vs YTD NOVEMBER 2015

FR

-1.5 pt

UK

+0.2 pt NL

+1.5 pt

BE

-8.9 pts

LU

-1.2 pt

DE

+0.6 pt

PL

+2.3 pts

CZ

+1.7 pt

HU

+2.0 pts

GR

+2.7 pts

IT

-0.1 pt

AT

+1.3 ptCH

-0.7 pt

ES

+2.9 pts

PT

+2.5 ptsTR

-11.1 pts

MT

-0.6 pt

LV

-1.1 pt




Sup. to 10%

Between 5% and 10%

Between 0% and 5%

Inf. to 0%

European

average

+0.4%

YTD Results - ADR change by countryYTD NOVEMBER 2016 vs YTD NOVEMBER 2015

FR

-3.1%

UK

+0.9% NL

+3.8%

BE

-1.6%

LU

+0.4%

DE

+3.5%

PL

+6.9%

CZ

+4.2%

HU

+6.0%

GR

+2.5%

IT

-6.0%

AT

-0.7%CH

-1.3%

ES

+8.1%

PT

+7.4%TR

-16.0%

MT

+4.3%

LV

-3.0%


METHODOLOGY1The report presents the results of corporate brand hotels in Europe. The sample consists of a total of more than 6,500 hotels, representing more than800,000 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 MKGHospitality’s market expertise and reflect the “marketing classification” in complement to the official rating system(s) of the country (if any). The categorybreakdowns 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).

Conventions

2oOccupancy rate: Number of sold rooms divided by number of available roomsoAverage daily rate: Room revenue divided by number of sold roomsoRevPAR: Occupancy rate x average daily price or room revenue divided by available roomsoAvailable rooms: Capacity x number of operating days (within a month)oSold rooms: Capacity x number of operating days x occupancy rateoRoom revenue: Room revenue expressed net of VAT (excluding other types of revenue

such as food and beverage, etc.)

Glossary