Global Hotel Market Post Positive Performance Results in July, Except Middle East

---

The Americas

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

The Americas region ended July with a 2.9-percent increase in occupancy to 69.9 percent, average daily rate was up 4.5 percent to US$105.68, and revenue per available room rose 7.5 percent for the month to US$73.82.

Among the key markets in the region, Santiago, Chile, reported the largest occupancy increase, rising 12.2 percent to 73.6 percent. Three other markets also reported double-digit occupancy increases: Montreal, Canada (+11.7 percent to 77.0 percent); Miami, Florida (+11.4 percent to 75.8 percent); and Rio de Janeiro, Brazil (+10.7 percent to 72.1 percent). Toronto, Canada (-0.9 percent to 73.3 percent), and Washington, D.C. (-0.7 percent to 76.2 percent), posted the only occupancy decreases for the month.

Sao Paulo, Brazil, jumped 33.8 percent in ADR to US$143.20, experiencing the largest increase in that metric, followed by Rio de Janeiro (+24.8 percent US$198.97).

Washington, D.C., was the only market to report decreases in both ADR (-0.6 percent to US$129.83) and RevPAR (-1.2 percent to US$98.88).

Four markets achieved RevPAR increases of more than 25 percent: Sao Paulo (+39.8 percent to US$97.39); Rio de Janeiro (+38.1 percent to US$143.48); Santiago (+29.9 percent to US$111.52); and Montreal (+26.1 percent to US$109.07).

Performances of key countries in July (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 July 2011.

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



"European hotels continued to improve on last year with increased demand driving occupancy and ADR growth. The gains provided a welcomed contrast to more subdued economic news that made headlines recently", said Elizabeth Randall, managing director of STR Global. "However, the slower GDP growth rates in selected key European markets make the outlook for the region a bit more challenging than it was a few months ago".

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

• Venice, Italy, rose 13.1 percent in occupancy to 85.7 percent, which was the largest increase in that metric. Venice was followed by Florence, Italy (+12.2 percent to 83.9 percent), and Manchester, United Kingdom (+12.1 percent to 82.0 percent).

• Malmo, Sweden, posted the largest occupancy decrease, falling 9.7 percent to 65.0 percent, followed by Vienna, Austria, with a 7.9-percent decrease to 76.0 percent.

• Three markets experienced ADR increases of more than 15 percent: Zurich, Switzerland (+20.6 percent to EUR207.93); Amsterdam, Netherlands (+20.0 percent to EUR134.61); and Stockholm, Sweden (+19.9 percent to EUR106.35).

• Cardiff, U.K., dropped 15.0 percent in ADR to EUR60.55, reporting the largest decrease in that metric, followed by Vienna with a 12.6-percent decrease to EUR85.22.

• Venice achieved the largest RevPAR increase, rising 28.1 percent to EUR242.18, followed by Dublin, Ireland (+19.9 percent to EUR67.09), and Florence (+19.4 percent to EUR130.52).

• Two markets posted double-digit RevPAR decreases: Vienna (-19.4 percent to EUR64.78) and Cardiff (-11.5 percent to EUR46.68).

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

---

Middle East & Africa

The Middle East/Africa region reported decreases in all three key performance metrics during July 2011 when reported in U.S. dollars.

The region ended the month with a 1.2-percent decrease in occupancy to 60.0 percent, a 1.0-percent fall in average daily rate to US$139.89, and a 2.2-percent decline in revenue per available room to US$83.98.

"The FIFA World Cup, which attracted extra demand and room supply during June/July 2010 across South Africa, made from a tough comparable this month throughout the country", said Elizabeth Randall, managing director of STR Global. "Meanwhile, the consequences of the Arab Spring continue to impact the results for Northern Africa. Dubai and Jeddah, on the other hand, continue to improve on last year's performance, both reporting double-digit RevPAR growth".

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

• Three markets reported double-digit occupancy increases: Dubai, United Arab Emirates (+17.6 percent to 77.9 percent); Jeddah, Saudi Arabia (+16.1 percent to 78.3 percent); and Abu Dhabi, UAE (+14.5 percent to 59.3 percent).

• Cairo, Egypt (-36.7 percent to 40.9 percent), and Sandton, South Africa, and the surrounding areas (-17.2 percent to 55.9 percent) posted the largest occupancy decreases for the month.

• Dubai rose 4.5 percent in ADR to US$162.18, reporting the largest increase in that metric, followed by Jeddah with a 4.0-percent increase to US$210.62.

• Two markets reported ADR decreases of more than 35 percent: Cape Town (-39.2 percent to US$117.74) and Sandton and the surrounding areas (-39.0 percent to US$138.52).

• Dubai jumped 22.8 percent in RevPAR to US$126.41, achieving the largest increase in that metric, followed by Jeddah (+20.8 percent to US$164.95).

• Sandton and the surrounding areas fell 49.5 percent in RevPAR to US$77.38, reporting the largest decrease in that metric.

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

---

Asia -Pacific

Hotels in the Asia/Pacific region experienced mostly positive results in the three key performance metrics during July 2011 when reported in U.S. dollars.

In year-over-year measurements, the Asia/Pacific region's occupancy rose 1.4 percent to 69.3 percent, average daily rate increased 13.9 percent to US$139.80, and revenue per available room jumped 15.4 percent to US$96.94.

"Occupancy across the Asia/Pacific region picked up again for July, reporting the highest monthly occupancy of the year so far", said Elizabeth Randall, managing director of STR Global. "The highest increases were reported by the Thai markets of Bangkok and Phuket, which are still recovering from the political turmoil of last year".

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

• Phuket, Thailand, rose 30.1 percent in occupancy to 71.0 percent, reporting the largest increase in that metric, followed by Bangkok, Thailand, with a 29.8-percent increase to 67.9 percent.

• Two key markets posted double-digit occupancy decreases: Shanghai, China (-19.2 percent to 61.0 percent), and New Delhi, India (-13.1 percent to 56.2 percent).

• Hong Kong (+26.4 percent to HKD1,714.70) and Jakarta, Indonesia (+16.9 percent to IDR799,573.67), experienced the largest ADR increases for the month.

• Shanghai fell 11.1 percent in ADR to CNY729.24, reporting the largest decrease in that metric, followed by Tokyo, Japan, with a 9.2-percent decrease to JPY13,067.26.

• Three key markets achieved RevPAR increases of more than 30 percent: Bangkok (+38.8 percent to THB1,989.11); Phuket (+37.7 percent to THB2,035.58); and Hong Kong (+31.9 percent to HKD1,465.44).

• Shanghai reported the largest RevPAR decrease, falling 28.2 percent to CNY445.07.

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



Highlights from key market performers for July 2011 in U.S. dollars (year-over-year comparisons):

• Brisbane, Australia, reported the largest ADR increase, rising 37.2 percent to US$207.80, followed by Sydney, Australia, with a 27.8-percent increase to US$190.79.

• None of the region's key markets reported ADR decreases.

• Three markets achieved RevPAR increases of more than 40 percent: Bangkok (+48.5 percent to US$65.69); Phuket (+47.4 percent to US$67.23); and Brisbane (+41.8 percent to US$180.33).

• Two markets experienced double-digit RevPAR decreases: Shanghai (-24.5 percent to US$68.93) and New Delhi (-11.6 percent to US$85.77).

---