50
50

Reduced Occupancy Does Not Affect Hotels’ RevPar

22 June 2018

In the first four months of the year, the Portuguese hotel industry registered a fall in the occupancy rate, but no impact on the hotels’ RevPar.

The AHP Tourism Monitor showed that the first four months of 2018 saw a significant increase (+10%) in the average room rate (ARR) to 78 euros (€101 in Lisbon). RevPar also increased by 9% to 46 euros, even though the occupancy rate fell by 0.7% to 59%.

Madeira (76%), Lisbon (73%) and Porto (64%) had the highest occupancy rates in the period. A highlight was the increases of 5.7% in Visei, 4.5% in Beiras and 3.7% in Alentejo. Beiras, Viseu and Lisbon recorded the highest RevPar growth: 31%, 23% and 12%, respectively.

According to the AHP’s analysis, overnight stays in the domestic market accounted for 30% of the total in the first four months of the year. 43% of the guests were nationals, and 57% were foreigners, with 13% from Germany, 10% from the United Kingdom and 6% from France.

Cristina Siza Vieira, the executive president of the Portuguese Hotel Association, says that “the results of the first four-month period of 2018 are not surprising, largely because we had already witnessed a monthly slowdown in the occupancy rate since the beginning of the year. It should be noted, however, that April was the only month where this indicator fell, which was due to the calendar effect of the Easter holiday and also, it is believed, adverse climatic conditions.”

The executive emphasised that “the decrease in the occupancy rate did not affect RevPAR, which rose as a result of the concurrent increases to the ARR. Although the results are not surprising, there are two regions which are some cause for concern: Azores and Leiria/Fátima/Templários, whose TO has been falling since the beginning of the year. On the other hand, it is also interesting to note the weight of domestic overnight stays in the North, Center and Alentejo, and the growth in the Algarve during this period testifies to the importance that the internal market has in the low season in these regions.

Original Story: Vida Imobiliária – Ana Tavares

Translation: Richard Turner