Global Hotel Market Posts Positive Performance Results in May Except M.E.A. Region

---

The Americas

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

The Americas region ended May with a 4.5-percent increase in occupancy to 61.6 percent, average daily rate was up 4.7 percent to US$104.00, and revenue per available room rose 9.4 percent for the month to US$64.09.

Among the key markets in the region, Santiago, Chile, achieved the largest monthly occupancy increase, rising 20.6 percent to 68.5 percent, followed by Mexico City, Mexico, with a 13.2-percent increase to 66.5 percent. Three markets reported occupancy decreases: New York, New York (-1.9 percent to 85.9 percent); Buenos Aires, Argentina (-1.8 percent to 60.5 percent); and San Juan, Puerto Rico (-1.6 percent to 73.2 percent).

Four markets experienced ADR increases of more than 15 percent: Sao Paulo, Brazil (+35.3 percent to US$149.04); Vancouver, Canada (+19.0 percent to US$165.61); San Francisco, California (+16.5 percent to US$157.06); and Montreal, Canada (+16.0 percent to US$145.94). None of the key markets in the Americas reported ADR decreases for the month.

Sao Paulo RevPAR jumped 38.8 percent to US$107.30, reporting the largest increase in that metric, followed by Santiago (+37.0 percent to US$104.13) and Vancouver (+30.3 percent to US$129.66). San Juan ended the month virtually flat in RevPAR with a 0.3-percent decrease to US$113.52.

Performances of key countries in May (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 May 2011.

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



"European hotels continue to bring in good results across the regions", said Elizabeth Randall, managing director of STR Global. "Occupancy and average room rate grew 5 percent and 8 percent respectively for May. Supply growth remains subdued across Europe at 1.1 percent for the first five months coupled with demand improving 5.3 percent, which helps hoteliers to build revenue per available room. The year-to-date RevPAR of €61 is greater than the year-to-date results of the past two years, but still €6 below the YTD RevPAR achieved in 2008. We expect that, given economic conditions do not change for the worse, the recent solid recovery in occupancy and average room rates continues over coming months.

"Düsseldorf is the star performer this month, with high increases in occupancy and average room rates", Randall said. "Düsseldorf hosted the Eurovision Song Contest and Interpack trade fair which boosted the city's results".

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

• Düsseldorf, Germany, achieved the largest occupancy increase, rising 34.1 percent to 72.6 percent, followed by Gothenburg, Sweden, with an 18.6-percent increase to 77.5 percent.

• Birmingham, United Kingdom, fell 12.1 percent in occupancy to 65.7 percent, reporting the largest decrease in that metric, followed by Istanbul, Turkey with a 6.8-percent decrease to 76.5 percent.

• Three markets posted ADR increases of more than 30 percent: Düsseldorf (+67.5 percent to EUR146.86); Istanbul, Turkey (+32.6 percent to EUR207.84); and Gothenburg (+31.4 percent to EUR125.02).

• Birmingham (-24.9 percent to EUR66.37) and Madrid, Spain (-11.8 percent to EUR92.77), reported the largest ADR decreases.

• Düsseldorf jumped 124.6 percent in RevPAR to EUR106.60, reporting the largest increase in that metric. Four other markets achieved RevPAR increases of more than 35 percent: Gothenburg (+55.8 percent to EUR96.85); Munich, Germany (+40.1 percent to EUR90.13); Cologne, Germany (+38.8 percent to EUR88.04); and Zurich, Switzerland (+36.9 percent to EUR163.84).

• Birmingham fell 34.0 percent in RevPAR to EUR43.62, reporting the largest decrease in that metric.

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

---

M.E.A.

The Middle East/Africa region (MEA) reported mixed performance results during May 2011 when reported in U.S. dollars.

The region ended the month with a 12.5-percent decrease in occupancy to 53.7 percent, average daily rate rose 8.5 percent to US$151.96, and revenue per available room ended the month with a 5.1-percent decrease to US$81.53.

"The political changes and demonstrations across parts of Northern Africa and the Middle East continue to influence hotel performances", said Elizabeth Randall, managing director at STR Global. "The MENA markets reporting positive occupancy and average room rate increases for May are Jeddah, Makah, Medina, Riyadh and Dubai. Despite new supply still entering the Dubai market, May was the second consecutive month of moderate average rate increases since mid-2008".

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

• Among the key markets in the region, Abu Dhabi, United Arab Emirates, reported the largest occupancy increase, rising 17.4 percent to 64.2 percent, followed by Riyadh, Saudi Arabia, with an 8.4-percent increase to 73.5 percent.

• Cairo, Egypt, occupancy dropped 47.6 percent to 34.4 percent, reporting the largest decrease in that metric, followed by Amman, Jordan, with a 19.4-percent drop in occupancy to 57.2 percent.

• Two markets experienced ADR increases of more than 10 percent: Cape Town, South Africa (+17.6 percent to US$135.28), and Riyadh (+11.3 percent to US$284.93).

• Abu Dhabi posted the largest ADR decrease of the key markets, registering a 22.3-percent drop to US$145.27, followed by Amman (-11.0 percent to US$143.24) and Beirut, Lebanon (-10.9 percent to US$189.79).
  

• Two markets experienced double-digit RevPAR increases: Riyadh (+20.6 percent to US$209.43) and Cape Town (+17.8 percent to US$59.50).

• Four markets reported RevPAR decreases of more than 20 percent: Cairo (-49.3 percent to US$40.06); Amman (-28.3 percent to US$81.93); Beirut (-26.6 percent to US$108.07); and Muscat, Oman (-22.0 percent to US$79.14).

Performances of key countries in May (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 May 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 decrease to 64.0 percent, average daily rate increased 13.5 percent to US$138.54, and revenue per available room jumped 13.3 percent to US$88.72.

"Supply increases outpaced demand for the first five months of this year growing 2.6 percent and 2 percent, respectively", said Elizabeth Randall, managing director of STR Global. "Therefore the occupancy levels across the region are down slightly by 0.6 percent, year to date. Occupancy continued to improve across Central & South Asia, Southeastern Asia and Oceania.

"Bangkok came back strongly in May from governmental protests last year", Randall continued. "Shanghai hosted the World Expo last year, which depressed the performance for this May. Tokyo continued to report weak performances against last year following March events".

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

• Bangkok, Thailand, achieved the largest occupancy increase, jumping 117.0 percent to 57.8 percent, followed by Phuket, Thailand, with a 26.2-percent increase to 51.5 percent.

• Two markets experienced double-digit occupancy decreases: Tokyo, Japan (-22.7 percent to 59.5 percent), and Shanghai, China (-21.8 percent to 58.5 percent).

• Hong Kong (+28.7 percent to HKD1818.80), and Bangkok (+15.2 percent to THB2908.14) posted the largest ADR increases for the month.

• Tokyo reported the largest decrease in ADR (-13.5 percent to JPY13180.80) and RevPAR (-33.1 percent to JPY7847.23).

• Bangkok achieved the largest RevPAR increase, rising 150.0 percent to THB1679.61, followed by Hong Kong with a 31.1-percent increase to HKD1456.23.

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



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

• Brisbane, Australia, increased 46.5 percent in ADR to US$212.34, reporting the largest increase in that metric, followed by Sydney, Australia (+33.5 percent to US$188.07), and Melbourne, Australia (+30.7 percent to US$183.73).

• Shanghai ADR fell 7.0 percent to US$126.01, reporting the largest decrease in that metric.

• Three markets achieved RevPAR increases of more than 40 percent: Bangkok (+171.9 percent to US$55.25); Brisbane (+47.5 percent to US$172.15); and Melbourne (+40.2 percent to US$135.71).

• Shanghai (-27.3 percent to US$73.75) and Tokyo (-24.7 percent to US$97.04) experienced the largest RevPAR decreases.

---