The UK continues to lead the hospitality recovery in Europe with hotel data analyst STR reporting the UK was “the strongest market in Europe” in March and April alongside Ireland and major ski regions.
UK hotel occupancy had recovered to 90% of 2019’s level by early May compared to 78% across Europe, according to STR. However, STR managing director Robin Rossmann forecast: “Europe will be the poster child of recovery for the next few months.”
He noted weekday demand in Europe was at 90% of the 2019 level “in the last three weeks” and said: “It’s only group business holding back the recovery. Group demand is about 50% of the 2019 level.”
Latest STR data shows the average daily rate (ADR) of hotel rooms has bounced back strongly, but not yet enough in Europe to outpace inflation.
Rossmann reported the ADR in Europe up 6% on 2019 in early May and the UK’s up 5%, saying: “Rate growth during the week is not great but weekend rates are going up.”
However, he said: “There is a lot of pain still in Germany.”
The average daily rate in Spain was up 14% and in Portugal 18%, with the recovery in ‘real’ ADR – allowing for inflation – “tracking well ahead of previous downturns” in 2001 and 2008-09.
Rossmann argued: “The biggest barrier to travel is no longer Covid but cost. There is no doubt there is an economic slowdown, but none of it matters for six to nine months because there is so much pent-up demand.”
Average occupancy in the Middle East had returned to 95% of the 2019 level and the ADR to 140%, while the US was close to 95% occupancy and the US ADR at 112%.
But Asia-Pacific remained at 50% occupancy and China at 40% and Rossmann said: “China is hurting the rest of Asia-Pacific because of its zero-Covid policy and is not going to recover any time soon.”
STR data showed six UK regions made the European top-10 for highest ADR growth last year, with Bournemouth recording the highest growth in Europe (169%), Cornwall and Devon third (162%) and Plymouth fourth (159%). Bath, the Lake District and East and North Yorkshire also made the top 10, with Harrogate, Dorset and Exeter in the top 15.