Hotel chains are posting their 2015 Q3 financial statements this month. One of the pieces of data I like to see in these statements is the average room rate and number of hotels by hotel brand.
Marriott International reports 4,364 properties worldwide as of September 30, 2015. During the third quarter, the company added 68 properties, while 21 properties exited from Marriott brands.
Two of the recent big signings to Marriott include Mandapa, a Ritz-Carlton Reserve on the island of Bali, Indonesia and The Hotel Lucerne, an Autograph Collection hotel in Switzerland.
Hotel average daily rate data is something I have looked at for more than five years. The data shown here for North America room rates points to one of the reasons why my travels have shifted to a large degree from North America to Europe in the past year. Looking back at my Marriott 2010 data shows the average rate of U.S. hotels has increased by about 25% in the past five years, while average rates in Europe have risen less than 10% from five years ago.
Marriott’s 2010 Q1 North America average daily rate composite was $119.96. In 2015 Q3, that same ADR composite is $148.96. That is a 24% increase. Brands like Fairfield Inn have increased average rates 32% from $82.66 to $109.10, while Courtyard has grown rates by 28% from $107.29 to $137.48 since 2010.
Continental Europe 2010 average daily rates were $156.03 at Marriott brand properties. Europe ADR for nine months from Jan 1-Sep 30, 2015 is posted at $167.72 for a 7.5% increase from five years ago.
Bottom line is Europe offers far better hotel value for American travelers than it did five years ago for Marriott stays and that trend is likely replicated across the other major hotel chains.
The lowest airline fares to Europe in about a decade combined with the best currency exchange rates in years makes 2015-2016 a great time to visit Europe, if that is something you have been thinking about for your travels.
