EU Report

Europe

OCTOBER 2018

H

ANALYSIS OF HOTEL RESULTS – OCTOBER 2018

All European countries are in the black

This October 2018, indicators were in the black overall for European hoteliers. With an OR up by +1.6 points, European hoteliers also saw their average daily rates progress by +4.9% overallallowing for the RevPAR to increase by 7.1% compared with October 2017.

The 5* hotels reported the best performance in terms of occupancy rate with +2.1 points, the average daily rates increased by +6.3% for 3* and 5* hotels, it is also on these categories that theRevPAR posts the best results with growth by +9.2% for 3* hotels and +9.4% for 5* hotels.

The trend year to date is also positive, confirming the good health of the sector on the old continent: the occupancy rate posted growth by +0.9 point overall, average daily rates progress by+2.7% and the RevPAR by +4.1%.

Austria, Hungary and France produced the best results and were already taking the lead in September.+18.2% for the RevPAR in Hungary to reach 74.7€ thanks to an occupancy rate up +2.7 points and average daily rates up 14.4% to reach 87.9€. Austria which progressed by 17.5% in its RevPAR toreach 89.8€ with an average daily rate up by +13.4% to reach an OR up 2.9 points. France continues to achieve good results with a RevPAR up by +12.4% to 73.4€ driven by an increase in averagedaily rates by 9.6% and an occupancy rate up by +1.8 point or 73.3%.

Belgium increases its RevPAR by +10.4% with an average daily rate up +7% and an occupancy rate at +2.5 points thanks to Brussels which does extremely well, contrary to Antwerp and Ghentwhich are down. Latvia produces a RevPAR up by +8.1%. After 6 months of negative results (except for July) Spain improves with a RevPAR up 7.9% to 77.5€ driven by average daily rates up by+5% combined with an occupancy rate up +2.1 points. Madrid improves by +23%, Bilbao +18.9%, Barcelona regains a positive trend with +5.7%.

The United Kingdom, Germany and Luxembourg post RevPARS up +6.9%, +6.4% and +6% respectively. Greece and the Netherlands, meanwhile, have RevPARs up +4.6%. Business destinations aredriving results in the Netherlands, while Amsterdam's occupancy is down -3.3 points resulting in a slight drop in the city's RevPAR by -0.1%.

Italy shows 3.3% growth in its RevPAR with an average daily rate up by 2.5% and an occupancy rate that remains stable at + 0.6 points. Bologna and Rome perform very well with +10.8% and15.7% growth in their RevPAR. Poland and the Czech Republic stagnate at +1% and +0.5% in their RevPAR.

The only country not following suit is Portugal, which underperforms with all its indicators in the red following a decline that began in September combined with growth in its hotel supply (up+5.0% in number of independent and chain operated rooms between 2017 and 2018). The RevPAR fell -2.3% due to an occupancy rate down -0.8 points and an average daily rate down by -1.4%.Lisbon posts a drop in its RevPAR by -11.6%, Porto remains positive with +6.8%.

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HOTEL RESULTS BY SEGMENT

IN EUROPE – OCTOBER 2018

YTD RESULTS

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

(pts) (%) (%)

2* 0,8 2,6% 3,7%

3* 1,2 3,3% 5,1%

4* 1,0 1,5% 2,9%

5* 2,0 4,6% 7,5%

Global 0,9 2,7% 4,1%

OR, ADR and RevPAR change - Last 24 months

MONTHLY RESULTS

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

(pts) (%) (%)

2* 1,5 4,7% 6,8%

3* 2,0 6,3% 9,2%

4* 1,6 3,7% 5,8%

5* 2,1 6,3% 9,4%

Global 1,6 4,9% 7,1%

Note : The indicators are compared to the same period of previous year, i.e. OCTOBER 2018 vs OCTOBER 2017

-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

11/16 12/16 01/17 02/17 03/17 04/17 05/17 06/17 07/17 08/17 09/17 10/17 11/17 12/17 01/18 02/18 03/18 04/18 05/18 06/18 07/18 08/18 09/18 10/18

Changes ADR Changes OR Changes RevPAR

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HOTEL RESULTS BY COUNTRY

IN EUROPE – OCTOBER 2018

Sup. to 10%

Between 5% and 10%

Between 0% and 5%

Inf. to 0%

European

average

+7.1%

Monthly Results - RevPARchange by countryOCTOBER 2018 vs OCTOBER 2017

FR

+12.4%

UK

+6.9%NL

+4.6%

BE

+10.4%

DE

+6.4%

PL

+1.0%

CZ

+0.5%

HU

+18.2%

GR

+4.6%

IT

+3.3%

AT

+17.5%CH

+5.6%

ES

+7.9%

PT

-2.3%

TR

+61.2%

MT

-3.3%

LU

+6.0%

LV

+8.1%

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HOTEL RESULTS BY COUNTRY

IN EUROPE – OCTOBER 2018

Sup. to 5 pts

Between 2,5 and 5 pts

Between 0 and 2,5 pts

Inf. to 0 pt

European

average

+1.6 pt

Monthly Results – OccupancyRate change by countryOCTOBER 2018 vs OCTOBER 2017

FR

+1.8 pt

UK

+2.2 pts NL

+0.7 pt

BE

+2.5 pts

LU

-5.1 pts

DE

+1.2 pt

PL

-0.0 pt

CZ

-1.1 pt

HU

+2.7 pts

GR

-1.5 pt

IT

+0.6 pt

AT

+2.9 ptsCH

+1.6 pt

ES

+2.1 pts

PT

-0.8 ptTR

+4.9 pts

MT

-2.5 pts

LV

+2.7 pts

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HOTEL RESULTS BY COUNTRY

IN EUROPE – OCTOBER 2018

Sup. to 10%

Between 5% and 10%

Between 0% and 5%

Inf. to 0%

European

average

+4.9%

Monthly Results - ADR change by countryOCTOBER 2018 vs OCTOBER 2017

FR

+9.6%

UK

+4.2% NL

+3.8%

BE

+7.0%

LU

+6.7%

DE

+4.8%

PL

+1.1%

CZ

+1.9%

HU

+14.4%

GR

+6.7%

IT

+2.5%

AT

+13.4%CH

+3.3%

ES

+5.0%

PT

-1.4%

MT

-0.2%

TR

+50.0%

LV

+4.0%

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HOTEL RESULTS BY COUNTRY

IN EUROPE – OCTOBER 2018

Sup. to 10%

Between 5% and 10%

Between 0% and 5%

Inf. to 0%

European

average

+4.1%

YTD Results - RevPAR change by countryYTD OCTOBER 2018 vs YTD OCTOBER 2017

FR

+7.8%

UK

+1.8% NL

+7.5%

BE

+8.5%

LU

+2.9%

DE

+2.5%

PL

+0.2%

CZ

-0.2%

HU

+9.7%

GR

+10.0%

IT

+2.5%

AT

+5.5%CH

+1.4%

ES

+0.3%

PT

+3.4%TR

+59.4%

MT

+0.9%

LV

+11.5%

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HOTEL RESULTS BY COUNTRY

IN EUROPE – OCTOBER 2018

Sup. to 5 pts

Between 2,5 and 5 pts

Between 0 and 2,5 pts

Inf. to 0 pt

European

average

+0.9 pt

YTD Results – Occupancy Rate change by countryYTD OCTOBER 2018 vs YTD OCTOBER 2017

FR

+1.5 pt

UK

+0.6 pt NL

+1.5 pt

BE

+2.7 pts

LU

-2.3 pts

DE

+0.3 pt

PL

-0.6 pt

CZ

+0.6 pt

HU

+0.8 pt

GR

+0.2 pt

IT

+0.9 pt

AT

+0.8 ptCH

+0.9 pt

ES

+0.0 pt

PT

-0.9 ptTR

+6.8 pts

MT

-0.8 pt

LV

+4.2 pts

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HOTEL RESULTS BY COUNTRY

IN EUROPE – OCTOBER 2018

Sup. to 10%

Between 5% and 10%

Between 0% and 5%

Inf. to 0%

European

average

+2.7%

YTD Results - ADR change by countryYTD OCTOBER 2018 vs YTD OCTOBER 2017

FR

+5.5%

UK

+1.1%NL

+5.6%

BE

+4.6%

LU

+6.0%

DE

+2.1%

PL

+1.0%

CZ

-1.0%

HU

+8.6%

GR

+9.7%

IT

+1.3%

AT

+4.4%CH

+0.2%

ES

+0.2%

PT

+4.5%TR

+43.9%

MT

+1.9%

LV

+5.2%

EU ReportH Produced by 10

METHODOLOGY

1

The 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