For the first time since 2010, Europe surpasses the United States in terms of hotel RevPAR growth.

According to hotel consultant STR, the European hotel industry passed hotels in the United States in year-over-year revenue per available room (RevPAR) increase for the first time since 2010.

In constant currency, year-end 2015 RevPAR growth in Europe was +6.9% (to US$83.94), while growth in the United States was +6.3% (to US$78.65). Events

Since each experienced a double-digit fall during the financial crisis in 2009, both the United States and Europe have reported six consecutive years of RevPAR growth. From 2011 to 2014, the United States has consistently higher year-end growth rates. In 2014, RevPAR growth in the United States was +8.1%, compared to +4.3% in Europe.

Despite recent security worries in Europe as a result of terrorist attacks and threats, which hit major cities such as Paris and London towards the end of the year, several markets in the region had solid overall performances in 2015. The weakening Euro and shifted demand from North Africa, according to STR experts, had key impacts. Summer hotel performance in Europe was excellent, with RevPAR growth of +9.9% in June, +13.0% in July, and +8.4% in August.

Amsterdam, Netherlands (+12.1 percent) is one of the major European markets with substantial RevPAR growth for the end of 2015.

Ireland's capital, Dublin, is up 23.3 percent.

Barcelona (+11.3%) is the most populous city in Spain.

Milan (+30.3 percent) is a city in Italy.

Warsaw, Poland (+9.8%) is a city in Poland.

Prague (+14.6%) is the capital of the Czech Republic.

 

Europe's strong performance trend has continued into 2016, with +3.0 percent RevPAR growth in January compared to +2.5 percent in the United States. It's also the first time since 2010 that Europe has started the year with a greater RevPAR growth rate than the United States.

"Most European hotels had a terrific 2015 and should be able to maintain that momentum in 2016," said STR managing director Robin Rossmann. "While the United States has maintained stronger performance since the recession, Europe is coming up and the future looks bright. While demand in both markets remains high, at 3.0% in the US and 2.9 percent in Europe, it will be fascinating to observe how the high expected supply growth in the US affects hotel occupancy, while Europe's supply growth pattern remains unchanged ""Keep it modest and steady."

 

The 'No' vote in Greece will have an impact on real estate investments.

According to Andrew Burrell, Head of Forecasting at JLL, the 'No' vote in the Greek referendum on austerity measures will have an influence on property market investments in the region.

According to Burrell, "Although the Greek negotiation position has improved slightly as a result of the no vote, there is no obvious path ahead. The underlying economic situation is still dire, and time is running out for negotiations. Either Grexit and total collapse are on the cards, or a last-minute deal with Eurozone leaders will be required. They're tired of the brinkmanship, and they're under a lot of political pressure not to offer debtors concessions, especially with public sentiment against them and elections in Spain imminent.

In the real estate market, a last-minute deal could be profitable if it appears to be long-term. Grexit and economic collapse would be devastating to Greece and the Eurozone in the short term, but markets should be sturdy enough to withstand the storm. There will be dangers associated with the interruption, but in the long run, it may be better for investment if the Eurozone refocuses on its other issues without the distraction of Greece."

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