Global Hotel Markets Perform Well in October

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Based on new hotel data compiled by STR Global, hotel markets across the world reported mostly positive performance gains in October 2011.

The Americas

The Americas region recorded positive results in the three key performance metrics when reported in U.S. dollars for October 2011.

The Americas region ended October with a 2.8-percent increase in occupancy to 62.9 percent, a 4.0-percent gain in average daily rate to US$106.69, and a 6.9-percent jump in revenue per available room to US$67.14.

Among the key markets in the region, Miami, Florida, rose 9.3 percent in occupancy to 74.8 percent, reporting the largest increase in that metric, followed by Alberta, Canada (+8.2 percent to 64.1 percent), and Rio de Janeiro, Brazil (+7.4 percent to 79.2 percent). Buenos Aires, Argentina, posted the largest occupancy decrease, falling 10.0 percent to 67.4 percent, followed by Vancouver, Canada, with a 9.4-percent decrease to 62.6 percent.

Two markets experienced ADR increases of more than 15 percent: Sao Paulo, Brazil (+21.2 percent to US$147.38), and San Francisco, California (+19.4 percent to US$188.24). Vancouver (-5.4 percent to US$132.43) and Washington, D.C. (-0.5 percent to US$158.80), ended the month with the largest ADR decreases.

Four markets achieved RevPAR increases of more than 15 percent: Miami (+22.4 percent to US$105.71); Sao Paulo (+21.3 percent to US$102.30); San Francisco (+20.4 percent to US$161.27); and Rio de Janeiro (+18.2 percent to US$160.99). Vancouver fell 14.3 percent in RevPAR to US$82.86, reporting the largest decrease in that metric.

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

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Europe

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

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


"Despite the economic news across Europe, the hotel market continued to report demand, occupancy and average-room-rate growth", said Elizabeth Randall, managing director of STR Global. "Cities with higher declines in local revenue per available room missed key events from last year: Cardiff (U.K.) benefited from the Ryder Cup last year and Gothenburg (Sweden) from a medical congress. Stockholm (Sweden) and Cologne (German) reported increases of more than 20 percent in RevPAR due to a medical congress and the Anuga trade fair, respectively".

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

• Venice, Italy, rose 12.0 percent in occupancy to 85.2 percent, reporting the largest increase in that metric. Manchester, United Kingdom, followed with a 9.4-percent increase in occupancy to 82.9 percent.

• Tel Aviv, Israel, reported the largest occupancy decrease, falling 22.6 percent to 70.7 percent, followed by Malmo, Sweden (-14.7 percent to 59.8 percent), and Athens, Greece (-12.8 percent to 60.5 percent).

• Three markets experienced ADR increases of more than 15 percent: Stockholm (+23.3 percent to EUR150.29); Cologne (+18.7 percent to EUR135.58); and Lisbon, Portugal (+18.2 percent to EUR99.14).

• Cardiff fell 20.2 percent in ADR to EUR63.29, posting the largest decrease in that metric.

• Three markets ended the month with RevPAR increases of more than 20 percent: Venice (+25.6 percent to EUR257.15); Stockholm (+23.7 percent to EUR114.07); and Cologne (+22.2 percent to EUR101.31).

• Gothenburg (-22.7 percent to EUR71.21), and Cardiff (-21.1 percent to EUR45.69) reported the largest RevPAR decreases.

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

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Middle East/Africa

The Middle East/Africa region reported mostly positive performance results during October 2011 when reported in U.S. dollars.

The region ended the month with a 3.4-percent decrease in occupancy to 63.4 percent, a 7.3-percent rise in average daily rate to US$169.42, and a 3.6-percent increase in revenue per available room to US$107.37.

"Across the Middle East, demand continued to improve with a 12-percent growth against October 2010, while supply growth remained around the 5-percent mark. The favorable dynamic between the two provided the subregion with its first double-digit RevPAR growth of the year", said Elizabeth Randall, managing director of STR Global. "Northern Africa's trading continued to be difficult with declining demand resulting in declining occupancy and average room rates. Southern Africa, on the contrary, reported demand, occupancy and RevPAR growth".

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

• Sandton, South Africa, and the surrounding areas, reported the largest occupancy increase, rising 13.4 percent to 60.8 percent, followed by Abu Dhabi, United Arab Emirates, with a 10.5-percent increase to 76.0 percent.

• Cairo, Egypt, posted the largest occupancy decrease, falling 38.4 percent to 46.4 percent, followed by Amman, Jordan, with a 22.6-percent decrease to 65.1 percent.

• Riyadh, Saudi Arabia, rose 9.2 percent in ADR to US$294.70, reporting the largest increase in that metric, followed by Jeddah, Saudi Arabia, with an 8.7-percent increase to US$188.61.

• Abu Dhabi (-13.1 percent to US$166.97) and Cairo (-13.0 percent to US$111.44) ended the month with the largest ADR decreases.

• Three markets achieved double-digit RevPAR increases: Jeddah (+14.5 percent to US$146.77); Dubai, UAE (+13.5 percent to US$194.05); and Muscat, Oman (+10.2 percent to US$180.43).

• Cairo fell 46.4 percent in RevPAR to US$51.76, reporting the largest decrease in that metric.

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

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Asia/Pacific

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

In year-over-year measurements, the Asia/Pacific region's occupancy fell 2.0 percent to 70.0 percent, its average daily rate increased 8.4 percent to US$150.60, and its revenue per available room was up 6.2 percent to US$105.41.

"October was another fantastic month for New Zealand as it continued to host the Rugby World Cup, resulting in a 110.5-percent increase in RevPAR (in local currency)", said Elizabeth Randall, managing director of STR Global. "Despite the floods affecting parts of Thailand, the country reported a 10.9-percent RevPAR increase for the month showing its resilience. Hong Kong is top of the city league table with 20.2-percent RevPAR increase for the month, benefiting from its positions as a strategic gateway into China and as an international financial and business centre".

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

• Phuket, Thailand, reported the largest occupancy increase, rising 8.9 percent to 70.2 percent, followed by Bangkok, Thailand, with a 6.4-percent increase to 57.7 percent.

• Two markets posted double-digit occupancy decreases: Shanghai, China (-14.9 percent to 63.3 percent), and New Delhi, India (-13.9 percent to 63.2 percent).

• Three markets achieved ADR increases of more than 15 percent: Hong Kong (+20.0 percent to HKD2,273.32); Bali, Indonesia (+18.3 percent to IDR1,349,463.03); and Jakarta, Indonesia (+16.2 percent to IDR836,885.65).

• Shanghai (-15.3 percent to CNY834.24) and New Delhi (-10.8 percent to INR9,122.99) reported the largest ADR decreases for the month.

• Hong Kong jumped 20.2 percent in RevPAR to HKD1,944.77, reporting the largest increase in that metric, followed by Jakarta with an 18.3-percent increase to IDR662,763.39.

• Two markets posted RevPAR decreases of more than 20 percent: Shanghai (-27.8 percent to CNY528.49) and New Delhi (-23.2 percent to INR5,767.42).

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


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

• Hong Kong ended the month with the largest ADR increase, rising 19.8 percent to US$292.74, followed by Bali with a 19.4-percent increase to US$153.03.

• New Delhi fell 18.4 percent in ADR to US$184.47, posting the largest decrease in that metric.

• Five markets experienced RevPAR increases of more than 15 percent: Brisbane, Australia (+20.2 percent to US$171.95); Hong Kong (+20.0 percent to US$250.43); Jakarta (+19.4 percent to US$75.16); Beijing (+18.2 percent to US$84.18); and Bali (+15.1 percent to US$119.26).

• New Delhi fell 29.7 percent in RevPAR to US$116.62, reporting the largest decrease in that metric, followed by Shanghai (-24.5 percent to US$82.89) and Mumbai (-20.4 percent to US$99.10).

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