Global Hotel Markets Post Mixed Performance Results in August

---

According to hotel data compiled by STR Global, despite economic slowdowns in many regions of the world, hotel markets globally still posted mostly positive performance results for the month of August 2012.

Here is a breakdown of hotel markets by region from STR Global.

---

Asia/Pacific Markets

Hotels in the Asia/Pacific region experienced mixed results in the three key performance metrics for August 2012 when reported in U.S. dollars.

In year-over-year measurements, the Asia/Pacific region's occupancy ended the month virtually flat with a 0.1-percent decrease to 68.1 percent, its average daily rate rose 0.7-percent to US$139.49 and its revenue per available room was up 0.7 percent to US$95.01.

"Average room rate growth across the Asia/Pacific region slowed down in recent months with a 2-percent increase for the first eight months this year (YTD) after stronger growth performances last year", said Elizabeth Randall Winkle, managing director at STR Global. "Average rates for YTD are within US$ 4 just below their YTD 2008 performance, reflecting the strong market conditions across most of Asia/Pacific".

Highlights from key market performers in August 2012 in local currency (year-over-year comparisons):

• Phuket, Thailand, reported the largest occupancy increase, rising 10.4 percent to 76.8 percent.
• Taipei, China (-9.5 percent to 62.4 percent), and Ho Chi Minh City, Vietnam (-9.3 percent to 56.5 percent) reported the largest occupancy decreases for the month.
• Two markets experienced ADR increases of more than 15 percent: Jakarta, Indonesia (+21.2 percent to IDR899,647.86), and Tokyo, Japan (+16.7 percent to JPY14,572.61).
• Three markets achieved RevPAR increases of more than 20 percent: Phuket (+26.6 percent to THB2,315.92); Jakarta (+24.7 percent to IDR467,740.71); and Tokyo (+22.7 percent to JPY11,784.54).
• Delhi, India, reported the largest ADR (-10.1 percent to INR6,212.22) and RevPAR (-13.4 percent to INR3145.90) decreases for the month.

Performances of key countries in August 2012 (all monetary units in local currency):



Highlights from key market performers for August 2012 in U.S. dollars (year-over-year comparisons):

• Tokyo rose 14.0 percent in ADR to US$185.33, reporting the largest increase in that metric.
• Delhi (-25.5 percent to US$111.60) and Mumbai, India (-19.5 percent to US$132.22), reported the largest ADR decreases for the month.
• Two markets achieved RevPAR increases of more than 15 percent: Phuket (+20.9 percent to US$73.55) and Tokyo (+19.8 percent to US$149.87).

---

Middle East/Africa

The Middle East/Africa region reported positive performance results in August 2012 when reported in U.S. dollars.

The region's occupancy increased 11.9 percent to 53.8 percent during the month, its average daily rate increased 3.0 percent to US$154.93 and its revenue per available room grew by 15.3 percent to US$83.37.

"Ramadan ended earlier this August compared to August 2011, and performance metrics were positively impacted because of it, showing a 19.6 percent RevPAR increase across the Middle East", said Elizabeth Randall Winkle, managing director of STR Global. "Africa's RevPAR grew 5.4 percent as occupancy continued to recover, but average room rates (in U.S. dollars) remained under pressure".

Highlights among the region's key markets for August 2012 include (year-over-year comparisons, all currency in U.S. dollars):

• Cairo, Egypt, reported the largest occupancy increase, rising 69.7 percent to 37.9 percent, followed by Amman, Jordan, with a 52.9-percent increase to 43.2 percent.
• Riyadh, Saudi Arabia, fell 8.5 percent in occupancy to 31.0 percent, reporting the largest decrease in that metric.
• Dubai, United Arab Emirates, increased 23.7 percent in ADR to US$184.23, posting the largest increase in that metric, followed by Jeddah, Saudi Arabia (+18.1 percent to US$255.99), and Amman (+17.8 percent to US$160.00).
• Sandton, South Africa, and its surrounding areas, experienced the largest decrease in ADR, falling 11.6 percent to US$118.45.
• Six markets achieved RevPAR increases of more than 25 percent: Amman (+80.1 percent to US$69.10); Cairo (+66.4 percent to US$39.81); Dubai (+59.9 percent to US$109.29); Jeddah (+40.6 percent to US$202.75); Muscat, Oman (+36.1 percent to US$61.27); and Manama, Bahrain (+25.8 percent to US$67.08).
• Beirut, Lebanon, fell 4.9 percent in RevPAR to US$68.41, posting the largest decrease in that metric.

Performances of key countries in August 2012 (all monetary units in local currency):

---

Europe

The European hotel industry posted mixed results in year-over-year metrics when reported in U.S. dollars, euros and British pounds for August 2012.

Year-over-year, August 2012 figures for Europe (U.S. dollars, euros and British pounds):



"European hotels reported a bounce in average room rates this August as the Olympics took full effect in London and the U.K., and German cities hosted major trade fairs", said Elizabeth Randall Winkle, managing director of STR Global. "Because the majority of the games took place during August, the event boosted average room rates in London, with the city reporting a 43.7 percent ADR increase in local currency. Further, average room rates in August 2011 were depressed with a 1-percent decline, leading to the bounce back. Occupancy managed to increase 0.5 percent compared to last year, halting a period of three months with declines.  However, it remains a factor to watch in the coming months, especially in conjunction with the economic developments in Europe".

Highlights from key market performers for August 2012 include (year-over-year comparisons, all currency in euros):

• Istanbul, Turkey, reported the largest occupancy increase, rising 23.9 percent to 65.2 percent, followed by Bratislava, Slovakia, with a 15.7-percent increase to 55.5 percent.
• Madrid, Spain, fell 16.3 percent in occupancy to 47.6 percent, reporting the only double-digit occupancy decrease for the month.
• London, United Kingdom, increased 60.6 percent in ADR to EUR199.27, achieving the largest increase in that metric. Geneva, Switzerland, followed with a 19.2-percent increase to EUR260.61.
• Madrid (-7.8 percent to EUR67.98) and Zurich, Switzerland (-7.6 percent to EUR174.20), posted the largest ADR decreases for the month.
• Five markets experienced RevPAR increases of 20 percent or more: London (+61.2 percent to EUR163.52); Istanbul (+39.8 percent to EUR99.76); Geneva (+32.8 percent to EUR151.77); Berlin, Germany (+20.5 percent to EUR60.62); and Reykjavik, Iceland (+20.0 percent to EUR117.37).
• Madrid fell 22.9 percent in RevPAR to EUR32.36, posting the largest decrease in that metric.

Performances of key countries in August 2012 (all monetary units in local currency):

---

The Americas

The Americas region recorded positive results in the three key performance metrics when reported in U.S. dollars for August 2012.

The Americas region reported a 2.8-percent increase in occupancy to 67.9 percent, a 3.8-percent gain in average daily rate to US$109.05 and a 6.7-percent increase in revenue per available room to US$74.08.

Among the region's key markets, San Juan, Puerto Rico, rose 6.6 percent in occupancy to 79.2 percent, reporting the largest increase in that metric, followed by Los Angeles, California, with a 5.6-percent increase to 83.0 percent. Panama City, Panama, fell 15.1 percent in occupancy to 45.9 percent, posting the largest decrease in that metric.

San Francisco, California, experienced the only double-digit ADR increase, rising 12.8 percent to US$180.19. Sao Paulo, Brazil, reported the largest ADR decrease, falling 11.1 percent to US$133.08.

Two markets achieved RevPAR increases of more than 10 percent: San Francisco (+12.6 percent to US$162.96) and Los Angeles (+12.4 percent to US$112.85). Panama City (-22.3 percent to US$52.84) and Sao Paulo (-15.7 percent to US$93.65) ended the month with the largest RevPAR decreases.

Performances of key countries in August 2012 (all monetary units in local currency):