Europe’s place in the global hotel industry
Globally, Europe has the highest hotel occupancy rates of any other major region, more than the Americas, Asia Pacific and the Middle East and Africa respectively. The industry benefits from Europe’s booming tourism industry; High numbers of international tourists arrive in Europe each year, driving demand and revenues for the hotel market. In 2018, revenue per available room amounted to more than 100 U.S. dollars in Europe, compared to 75 dollars in the Asia Pacific region.
Eastern Europe - an emerging market
Historically hotel performance in Central and Eastern Europe has been weaker than in the west. However, as economies stabilized and tourism increased, investors saw potential for the hotel market and the gap in occupancy rates between Eastern and Western Europe is gradually closing. Hotel prices have also begun to rise, creating a higher return on investment. In 2019, the average daily rate of a hotel room in Eastern Europe amounted to approximately 88 euros. Compared to an average of 113 euros across Europe it is still notably low, although the market is expected to grow.