Hotel occupancy rates in Istanbul see sharp increase in April, but revenues keep declining
Hotel occupancy rates across Turkey rose sharply in April thanks to the Easter holiday and a significant revival in the Middle Eastern market, with Istanbul seeing a 30 percent year-on-year increase, although hotel revenues continued to decline, a leading association announced on May 30.
In a statement announcing STR Global’s April data, the Hotels Association of Turkey (TÜROB) said this steep increase gave hope to the struggling sector, but it would take some time to see some positive development in revenues.
TÜROB President Timur Bayındır said the country saw a pleasing increase in hotel occupancy rates in April, mainly thanks to an increase in arrivals during Easter and from the Middle Eastern market.
“An up to 30 percent increase in Istanbul’s hotel occupancy rates has especially boded hopes,” he said, adding that a continuing decline in hotel revenues however remained to be a key problem.
Saying that Turkey was the only country which saw a double-digit decrease in hotel revenues across Europe in the first four months of the year, Bayındır noted: “It is not unusual for Turkey to see an increase in its hotel occupancy rates, as the country is not an easily revocable destination for tourists and is a tourism brand. However, it will take some time for Turkey to see some positive developments in terms of hotel revenues.”
According to the statement, hotel occupancy rates rose to 61.2 percent across the country in April with a 15.7 percent year-on-year increase. In the first four months of the year, Turkey’s hotel occupancy rates increased 5.8 percent to 53.8 percent compared to the same period of 2016.
In April, Istanbul witnessed a significant rise in hotel occupancy rates, as the rates hit 64.8 percent with a 27.9 year-on-year increase. The city’s hotel occupancy rates rose to 53.5 percent in the first four months of the year from 49.9 percent in the same period of last year, according to STR Global.
Hotel occupancy rates in the Mediterranean resort of Antalya also hit 57.8 percent in April with an 8.8 percent year-on-year increase. The rates soared to 54 percent in the January-April period from 48.2 percent in the same period of last year.
Hotel revenues, however, kept declining in April, the data showed. In the first four months of the year, the average daily rate (ADR), a measure of the average rate paid for rooms sold, regressed to 59 euros across the country with a 23.3 percent year-on-year decrease, making Turkey the largest loser in this category across Europe.
The ADR in Istanbul regressed to 71.5 euros in the first four months of the year from 96.3 euros in the same period of 2016. The revenue per available room, aka RevPAR, declined to 38.2 euros in the mentioned period from 48 euros.
Hotel revenues in Antalya also kept declining in April, according to STR Global. The ADR in Antalya regressed to 49.2 euros in the January-April period from 57 euros in the same period of 2016. Its RevPAR also declined to 26.6 euros in the mentioned period from 27.8 euros on a year-on-year basis.