Global Hotel Markets Post Performance Gains in January, Says STR

---

The Americas

According to STR and STR Global, the Americas region recorded positive results in the three key performance metrics when reported in U.S. dollars for January 2011.

The Americas region ended January with a 5.6-percent increase in occupancy to 48.2 percent, average daily rate was up 3.1 percent to US$99.73, and revenue per available room rose 9 percent for the month to US$48.04.

Among the region's key markets, San Francisco, California, experienced the largest occupancy increase, rising 11.2 percent to 65.5 percent, followed by Buenos Aires, Argentina (+10.4 percent to 64.0 percent), and Sao Paulo, Brazil (+10.2 percent to 58 percent). Vancouver, Canada, reported the largest occupancy decrease, falling 8.3 percent to 47.4 percent.

Sao Paulo achieved the largest ADR increase, rising 30.9 percent to US$125.12, followed by Santiago, Chile, with a 17.3-percent increase to US$152.55. Vancouver fell 1.8 percent in ADR to US$187.32--the largest decrease in that metric.

Three markets reported RevPAR increases of more than 20 percent: Sao Paulo (+44.3 percent to US$72.55); San Francisco (+24.5 percent to US$93.52); and Santiago (+20.4 percent to US$109.78). Two markets posted RevPAR decreases: Vancouver (-8.4 percent to US$58.78) and San Juan, Puerto Rico (-3.2 percent to US$132.92).

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

---

Europe

The European hotel industry posted positive results in year-over-year metrics when reported in U.S. dollars, euros and British pounds for January 2011.

Year-over-year, January 2011 figures for Europe (U.S. dollars, euros and British pounds):



"Europe's recovery continued in January 2011 with solid growth in occupancy and ADR", said Elizabeth Randall, managing director of STR Global. "With a 5-percent increase in demand and limited supply growth, the outlook is promising. The Men's Handball World Championship benefited Malmo and Gothenburg, as they were two of the eight locations across Sweden hosting the tournament. The championship, along with a trade fair in Munich, brought additional demand to the cities in otherwise low season months".

Highlights from key market performers for January 2011 include (year-over-year comparisons, all currency in euros):

• Gothenburg, Sweden, reported the largest occupancy increase, rising 22.8 percent to 52.2 percent, followed by Venice, Italy, with a 20.1-percent increase to 31.4 percent.

• Cardiff, Wales, fell 5.1 percent to 49.0 percent in occupancy, reporting the largest decrease in that metric, followed by Manchester, United Kingdom, with a 3.8-percent decrease to 59.0 percent.

• Four markets experienced ADR increases of more than 20 percent: Malmo, Sweden (+33.2 percent to EUR109.32); Gothenburg (+24.1 percent to EUR102.30); Munich, Germany (+23.0 percent to EUR115.25); and Geneva, Switzerland (+20.5 percent to EUR253.24).

• Three markets reported ADR decreases: Athens, Greece (-3.3 percent to EUR89.26); Hamburg, Germany (-2.7 percent to EUR91.60); and Budapest, Hungary (-2.5 percent to EUR58.93).

• Malmo jumped 57.7 percent in RevPAR to EUR55.62, reporting the largest increase in that metric, followed by Gothenburg with a 52.5-percent increase to EUR53.40.

• Three of the region's key markets experienced RevPAR decreases: Manchester (-3.6 percent to EUR43.47); Budapest (-3.4 percent to EUR20.72); and Cardiff (-1.3 percent to EUR30.66).

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

---

Middle East & Africa

The Middle East/Africa region reported increases in all three key performance measurements during January 2011 when reported in U.S. dollars.

The region's occupancy ended the month with a 6.2-percent increase to 57.5 percent, average daily rate rose 4.6 percent to US$172.26, and revenue per available room went up 11.2 percent to US$99.02.

"The full impact of the recent and ongoing demonstrations against existing governments across the region will only be seen in the February results", said Elizabeth Randall, managing director of STR Global. "While our sample of five hotels in Tunisia reported increases in average rate, their 20-percent decline in occupancy, on average, is the lowest level reported in any month during the past few years. Whilst this is not a full representative sample for the country, it gives an indication that hotels kept their room rates as any discounting would have not generated additional demand. We see a similar picture from the daily performances in Cairo for the end of January and throughout February. Our sample of 22 hotels in Cairo reported falling occupancy levels dropping to below 17 percent for the first 21 days of February with increases in average rates".

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

• Abu Dhabi, United Arab Emirates, experienced the largest occupancy increase, rising 21.3 percent to 60.9 percent, followed by Muscat, Oman (+17.3 percent to 60.9 percent), and Amman, Jordan (+14.2 percent to 49.5 percent).

• Two markets posted double-digit occupancy decreases: Beirut, Lebanon (-20.9 percent to 41.6 percent), and Johannesburg, South Africa (-15.6 percent to 41.7 percent).

• Muscat (+9.9 percent to US$283.93) and Johannesburg (+9.5 percent to US$100.10) reported the largest ADR increases for the month.

• Abu Dhabi reported the largest ADR decrease, falling 32.6 percent to US$189.70.

• Two markets achieved double-digit RevPAR increases: Muscat (+28.9 percent to US$172.93) and Amman (+16.0 percent to US$75.72).

• Beirut reported the largest RevPAR decrease, falling 24.6 percent to US$86.09, followed by Abu Dhabi with an 18.3-percent decrease to US$115.54.

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

---

Asia & Pacific

Hotels in the Asia/Pacific region experienced increases in all three key performance metrics during January 2011 when reported in U.S. dollars.

In year-over-year measurements, the Asia/Pacific region's occupancy ended the month virtually flat with a 0.2-percent increase to 62.0 percent, average daily rate increased 14.6 percent to US$144.85, and revenue per available room jumped 14.9 percent to US$89.74.

"This is the first time we saw a less than 1 percent occupancy increase since October 2009; however, this reflects the strong bounce the region had in 2010 more than any weakness in the market", said Elizabeth Randall, managing director of STR Global. "Rate growth remained strong in January 2011. Looking at the markets, Australia, despite having still to struggle with unprecedented flooding in January, reported only slight declines in occupancy for the month. Hong Kong had a strong start into the New Year; with occupancy levels of around 80 percent, the market's ADR rose 24 percent in local currency. The weakening of the Hong Kong dollar against other Asian currencies continues to make the destination more attractive to visitors".

Highlights from key market performers for January 2011 in local currency: (year-over-year comparisons)

• Hong Kong reported the largest ADR increase, rising 24.0 percent to HKD1814.74, followed by Jakarta (+16.3 percent to IDR797037.25) and Bali (+15.4 percent to IDR1370198.00).

• Three markets achieved RevPAR increases of more than 20 percent: Bali (+27.1 percent to IDR1012670.92); Jakarta (+25.5 percent to IDR501875.00); and Hong Kong (+21.3 percent to HKD1451.74).

Performances of key countries in January 2011 (all monetary units in local currency):


Highlights from key market performers for January 2011: (year-over-year comparisons, all currencies in U.S. dollars)

• Bali, Indonesia, experienced the only double-digit occupancy increase, rising 10.1 percent to 73.9 percent, followed by Jakarta, Indonesia, with a 7.9-percent increase to 63.0 percent.

• New Delhi, India, reported the largest occupancy decrease, falling 12.9 percent to 63.7 percent. The market also experienced the only decreases in ADR (-1.0 percent to US$186.29) and RevPAR (-13.8 percent to US$118.75) for the month.

• Three markets achieved ADR increases of more than 20 percent: Sydney, Australia (+24.0 percent to US$188.31); Hong Kong, China (+23.6 percent to US$232.92); and Jakarta (+20.2 percent to US$87.20).

• Bali reported the largest RevPAR increase, jumping 31.4 percent to US$110.79. Two other markets experienced RevPAR increases of more than 25 percent: Jakarta (+29.7 percent to US$54.91) and Sydney (+28.2 percent to US$150.56).

---