The second quarter of 2017 in the Icelandic capital was characterised by a slight RevPAR growth of 1.7% to ISK 16,495, carried by an ADR growth of 2.8% to ISK 20,991 and slowed down by a slight decrease in occupancy of -1.1% to 79% according to NHC QUARTERLY MARKET REPORT
In April, the Reykjavik hotel market experienced the biggest increase in RevPAR of the quarter of 12.9% to ISK 11,982. This increase was both driven by a growth in ADR of 8.9% to ISK 15,654 and a growth in occupancy of 3.7% to 77%.
May was the worst performing month of the quarter with a decrease in occupancy of – 4.5% to 72% and a slight increase in ADR of 1.2% to ISK 20,704. This resulted in a decrease in RevPAR to ISK 14,927– a decrease of – 3.3%.
June did also experience a decrease in RevPAR of – 0.8% to ISK 22,444. ADR did increase a little by 1.5% to ISK 25,756 and occupancy decreased by – 2.2% to 87%. There is a significant increase in RevPAR from May to June as the peak season for leisure tourism in Reykjavik is from June –August.
– NHC QUARTERLY MARKET REPORT
What is RevPAR
Revenue per available room (RevPAR) is a performance metric used in the hotel industry and is calculated by multiplying a hotel’s average daily room rate (ADR) by its occupancy rate. It may also be calculated by dividing a hotel’s total room revenue by the total number of available rooms in the period being measured.