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Hotel rates in Europe up by 5.4 per cent

The rise was accompanied by a 1.6 per cent increase in room occupancy to 73.7 per cent, according to HotStats

Pictured: Budapest

Room rates at European hotels increased by 5.4 per cent in April to €160 (£141), according to the latest HotStats report.

The rise was accompanied by a 1.6 per cent increase in room occupancy to 73.7 per cent. The growth was fuelled by robust increases in the commercial sector, including the residential conference (9.1 per cent) and corporate (11.1 per cent) segments.

As a result, hotels in Europe recorded a 12th consecutive month of profit growth in April, which climbed by 18.9 per cent year-on-year to €63 (£55) per available room.

In Budapest, hoteliers were able to leverage prices in April to a new high due to increased demand and the current undersupply of hotel accommodation. The Hungarian capital saw a 2.4 per cent drop in occupancy to 81.5 per cent, accompanied by an 8.3 per cent year-on-year increase in room rate to €129 (£114).

Pablo Alonso, CEO of HotStats, said: “The unrelenting increase in the number of tourists to Hungary, the majority of which will visit Budapest, continued in 2017 and was led by a 7.9 per cent increase in the number of international visitors, which is enabling hoteliers to drive top and bottom line performance.

“However, with approximately 1,000 bedrooms, mooted for development in the Hungarian capital in the next few years, many of which will be developed out by major international brands, it will be interesting to see if growth levels can be maintained.”

Room rates in Brussels soared to their highest level in recent years, as the Belgian capital and seat of the European government recovers following the terrorist attacks of two years ago.

A 6.2 per cent increase in average room rate, to €162 (£142), was accompanied by a 7.7 per cent increase in room occupancy, to 76.8 per cent.

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