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Hotel Market Forecast 2015

Forecast of hotel performance from the Q2 2015 edition of the hotel market forecast report.

World highlights 

Dublin is predicted to see the largest growth in revenue per available room (RevPAR) by +10.7%, largely due to a strong average daily rate (ADR). ADR is expected to remain at higher levels as a result of lower inflation, strong consumer confidence, falling unemployment rates, rapidly growing business confidence and prominent exports.

Hong Kong is expected to see a -5.0% fall in RevPAR, largely because of a decrease in both occupancy and ADR. The continuing fall of domestic demand on the Mainland as well as capacity constraints and restrictions on the number of visits from the Mainland to Hong Kong limits the expansion of tourist arrivals and spending in the future; therefore stunting RevPAR growth. High levels of debt will lead to a decrease of house-hold spending thus resulting in a weaker economy as a whole.

Worldwide Projected RevPAR growth 2015

 

Europe Highlights

Milan's RevPAR is predicted to grow by +9.2% in 2015 as the euro continues to depreciate, making Italy a more competitive destination for its key markets; China, Switzerland and the UK. Exports are expected to grow +2.8% in 2015, contributing to a stronger economy.  In addition, Milan is set to host the 2015 expo which will contribute to an increase in RevPAR.

In contrast, Moscow is forecasted to see a decrease in RevPAR by -6.2%; mostly as a result of falling occupancy rates which are predicted to decrease by -5.9% in 2015.  Consumption in Russia as a whole is predicted to contract by -8.2% this year, which will also have a negative impact on domestic travel.

Europe Projected RevPAR growth 2015

 

 

UK highlights

The UK as a whole is forecasted to see an appreciation in sterling which will strengthen ADR and increase resident travel outwards. This year UK will be hosting the rugby world cup which will have a positive impact on RevPAR numbers. 

London is forecasted to have a +2.1% growth in RevPAR as a result of a +2.0% rise in ADR.

Glasgow's RevPAR is forecasted to decline by -5.7%  resulting from a -5% decrease in ADR. Part of this decline will be due to the Common Wealth Games hosted in Glasgow 2014.

Across regional UK, the Midscale Economy class RevPAR is predicted to rise by+5.9%, due to an increase in both ADR and in occupancy rates. 

London Upper midscale class and Birmingham are both predicted to see growth in RevPAR, increasing by +5.6% and +4.5% respectively. This is largely due to forecasted increases in their ADR.

UK Projected RevPAR growth 2015

 

How will your market perform in the future?

To find out how macro economic factors could be affecting your hotel in the future, start receiving forecast data today with the Market Forecast Report from STR Global.

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