Courtesy/News Source: hospitalitytechnews.com

Copenhagen sees record quarterly supply growth

Lisbon reports first quarterly ADR decrease since Q1 2014

Europe’s hotel industry reported positive results across the three key performance metrics during Q3 2019, according to data from STR.

Euro constant currency, Q3 2019 vs. Q3 2018

Europe

Occupancy: +0.6% to 79.1%

Average daily rate (ADR): +1.1% to EUR121.36

Revenue per available room (RevPAR): +1.7% to EUR95.95

Local currency, Q3 2019 vs. Q3 2018

Copenhagen, Denmark

Occupancy: -1.3% to 87.7%

ADR: +0.4% to DKK1,097.62

RevPAR: -0.9% to DKK963.03

The market’s 8.1% increase in supply was the largest for any third quarter in STR’s Copenhagen database. Demand (+6.7%) also grew a healthy pace, mitigating the pressure on occupancy levels. According to Oxford Economics, Copenhagen welcomed a record number of visitors in 2018, and that number is set to increase in the coming years. STR analysts note the importance of growth in visitor arrivals and hotel demand as Copenhagen is expected to add an additional 5,281 rooms by 2022, according to STR’s AM:PM database.

Lisbon, Portugal

Occupancy: -1.9% to 84.3%

ADR: -1.1% to EUR128.45

RevPAR: -3.0% to EUR108.28

The market reported its first ADR decrease for any quarter since Q1 2014. According to Oxford Economics, while tourism arrivals to Lisbon have reached record highs, year-over-year growth has been minimal (+0.4% in 2018) in comparison with previous years. STR’s AM:PM database shows that the projected room openings through 2022 represent 15% of Lisbon’s existing supply.

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