Hotel prices in Europe increased by nearly 20 per cent in 2022, compared with 2019, despite occupancy remaining more than 10 percentage points lower than in the pre-Covid year.
The latest data from hotel market analyst STR found that Europe’s properties had an overall occupancy rate of 64.6 per cent last year, down from 75.1 per cent occupancy achieved in 2019. Despite filling fewer rooms during the year, average daily rate (ADR) in Europe rose by 18.5 per cent over the same period to reach $148.97 on a “constant currency” basis.
These higher hotel rates allowed Europe’s hotels to record revpar (revenue per available room) of $96.25 in 2022, up by 6.1 per cent on 2019’s average.
Across the globe, Asia was the only region to record a lower ADR last year than during 2019, with rates still 9.9 per cent lower than in the pre-pandemic year. The region was adversely affected by the continued closure of travel to and from China due to its strict Covid rules, which were finally lifted earlier this month.
Every other region saw double-digit rises in average hotel rates over this period, with some of the highest rises in Africa (+38.3%), South America (+30.3%) and the Middle East (22.2%).
Robin Rossmann, STR’s managing director, said: “The industry’s resilience has been underpinned by significant pent-up leisure travel over the summer, along with the return of corporate demand, as the nature and length of this business travel has evolved.
“Unlike previous downturns, room rates have been the key driver of recovery. Though occupancy came in below the pre-pandemic comparables, the metric is anticipated to stabilise throughout 2023. Despite economic headwinds, the industry is operating from a position of strength in the new year.”