Summer Study: Europe. A look at European hotel performance during summer 2017 (June - August) Key Findings

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1 Summer Study: Europe A look at European hotel performance during summer 2017 (June - August) Key Findings - This was the strongest summer overall for European hotels dating back to with record-breaking levels in all three KPIs and RevPAR (revenue per available room) surpassing 90 for the first time - Several markets saw RevPAR recovery, including Istanbul (+88%), Kiev (+29%) & Brussels (+25%) - Stand-out results across several markets in the Iberian Peninsula & Eastern Europe - Top performers in terms of RevPAR (in ) were Croatia, Israel & Malta. The greatest year-over-year increases were seen in Kazakstan, Turkey & Azerbaijan

2 Europe Summer 2017 Hotel Performance EUR, Constant Currency, June - August 2017 What s driving growth? Europe, Main KPI % Chgs, EUR, CC, June - August % Occupancy +2.0% ADR RevPAR Performance growth was reported across all KPIs, thanks to a 2.9% increase in demand (rooms sold), which outpaced a 1.0% growth in supply (rooms available) A 7.7% increase in revenue indicates that travellers were willing to spend more when visiting Europe this summer. - Overall, this was the strongest summer for Europe s hotel market dating back to 2000, with RevPAR levels surprassing 90 for the first time The figures in this report are in constant currency unless otherwise indicated. Supply Demand Occupancy ADR RevPAR Revenue

3 Summer Performance by Key Markets RevPAR % Change, Local Currencies, June - August 2017 While nearly every major European hotel market posted growth this summer, for some this growth means recovery from a weak Istanbul (RevPAR +88%) and Brussels (RevPAR +25%) are both coming back from sharp declines in 2016 due to security concerns after multiple terror attacks. While both markets remain behind their 2015 RevPAR levels, they are beginning to close the gap. Istanbul s performance results are particularly high due to high inflation levels, as the Turkish lira hit an all-time low against the dollar in January Overall, markets in the Iberian Peninsula had a strong summer, with Lisbon, Madrid and Barcelona reporting double-digit ADR increases. Occupancy levels remained relatively in line with previous years for the Spanish markets, while Lisbon reported a marginal occupancy decline. Barcelona s August performance (RevPAR +22.0%) was notable, considering the terror attack that occurred as well as the political unrest with the Catalan independence movement. Most Eastern European markets experienced strong RevPAR growth. In Kiev and Bucharest, performance was largely driven by demand, with respective occupancy increases of 17.6% and 7.8%. Budapest, which is already a well-established tourist destination, maintained occupancy levels over 80% during the summer months. Hungary saw a 25.6% increase in ADR compared with the summer 2016 period. Rome was the only major market to post a drop in RevPAR. This is mainly due to declines in August, as the market hosted the European Society of Cardiology Congress in August 2016, which took place in Barcelona this year (and likely contributed to Barcelona s RevPAR increase in August). 15 Lisbon 8 Dublin 24 Madrid 11 Helsinki 12 Edinburgh Amsterdam London 25 Brussels 4 Paris 3 Zurich 18 Barcelona Copenhagen 7 9 Berlin 8 Prague 5 Vienna 0 Rome Warsaw 27 Budapest 24 Belgrade 10 St. Petersburg 29 Kiev 14 Bucharest 5 Athens 7 Moscow 88 Istanbul

4 Record-Breaking Performances Summer Months (June-August 2017) Occupancy (%) ADR (LC) RevPAR (LC) Austria Germany Andorra Croatia Spain Germany Finland Portugal Spain Georgia Ireland Italy Greece Finland Portugal Hungary Hungary Ireland Ireland Denmark Finland Italy Ukraine Hungary Latvia Norway Israel Luxembourg Croatia Denmark Netherlands Kazakhstan Ukraine Poland Azerbaijan Lithuania Romania Malta Gerogia Slovenia Estonia Croatia Spain Luxembourg Kazakhstan Serbia Azerbaijan Malta Estonia Luxembourg Slovenia Serbia

5 Record-Breaking Top Actual Performance Performances Levels Summer Months (June-August 2017) Summer Months (June-August 2017) Top Performance Increases Summer Months (June-August 2017) OCC % 1. Slovenia 2. Ireland 3. Malta 4. Denmark 5. Estonia ADR 1. Israel 2. Croatia 3. Switzerland 4. Italy 5. Malta RevPAR 1. Croatia 2. Israel 3. Malta 4. Switzerland 5. Greece OCC % 1. Turkey 2. Serbia 3. Belgium 4. Kazakhstan 5. Azerbaijan ADR 1. Kazakhstan 2. Turkey 3. Azerbaijan 4. Ukraine 5. Hungary RevPAR 1. Kazakhstan 2. Turkey 3. Azerbaijan 4. Ukraine 5. Hungary

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