Global Hotel Performance Was Mixed in September

---

The Americas

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

The Americas region ended September with a 5.4-percent increase in occupancy to 63.4 percent, a 3.8-percent gain in average daily rate to US$105.08, and a 9.4-percent jump in revenue per available room to US$66.61.

Among the key markets in the region, Miami, Florida, reported the highest occupancy increase, rising 12.6 percent to 67.0 percent, followed by Mexico City, Mexico, with an 8.6-percent increase to 65.7 percent. Sao Paulo, Brazil (-3.8 percent to 67.9 percent), and San Juan, Puerto Rico (-2.9 percent to 58.0 percent), reported the largest occupancy decreases for the month.

Buenos Aires, Argentina, achieved the largest ADR increase, rising 19.4 percent to US$152.98, followed by Sao Paulo (+14.1 percent to US$135.81) and Miami (+10.5 percent to US$119.37). Montreal, Canada, fell 2.9 percent in ADR to US$131.71, reporting the largest decrease in that metric.

Four markets reported double-digit RevPAR increases: Miami (+24.4 percent to US$79.94); Buenos Aires (+21.7 percent to US$107.89); San Francisco, California (+14.0 percent to US$151.35); and Los Angeles, California (+13.7 percent to US$88.50). Montreal fell 3.5 percent in RevPAR to US$97.85, reporting the only decrease in that metric.

Performances of key countries in September (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 September 2011.

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



"After a more muted performance in August, European hoteliers reported growth for September in line with the previous months of this year", said Elizabeth Randall, managing director of STR Global. "While the wider economic climate has become more difficult during the past two months, the hotel market, so far, has continued to see demand increases. However, the hotel industry traditionally lags changes in the broader economy, and should the economic environment become even more challenging during the coming months, demand likely will be impacted".

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

• Tel Aviv, Israel, reported the only double-digit occupancy increase, rising 36.9 percent to 79.1 percent.

• Düsseldorf, Germany (-7.4 percent to 68.9 percent), and Malmo, Sweden (-7.3 percent to 69.0 percent), posted the largest occupancy decreases for the month.

• Aberdeen, United Kingdom, rose 26.0 percent in ADR to EUR102.44, reporting the largest increase in that metric, followed by Lisbon, Portugal, with a 25.6-percent increase to EUR107.16.

• Three markets experienced double-digit ADR decreases: Cardiff, United Kingdom (-17.9 percent to EUR62.92); Düsseldorf (-15.4 percent to EUR95.30); and Cologne, Germany (-12.4 percent to EUR104.17).

• Three markets achieved RevPAR increases of more than 30 percent: Tel Aviv (+50.4 percent to EUR141.41); Aberdeen (+33.3 percent to EUR85.86); and Lisbon (+31.2 percent to EUR90.45).

• Düsseldorf fell 21.7 percent in RevPAR to EUR65.64, reporting the largest decrease in that metric, followed by Cardiff with a 17.9-percent decrease to EUR47.01.

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



Middle East/Africa

The Middle East/Africa region reported mixed results in the three key performance metrics during September 2011 when reported in U.S. dollars.

The region ended the month virtually flat with a 0.1-percent increase in occupancy to 58.4 percent, a 1.5-percent fall in average daily rate to US$140.89, and a 1.3-percent decrease in revenue per available room to US$82.34.

"After consecutive monthly declines in occupancy since February 2011, the metric finally reported a slight increase in the region, driven by improving conditions in the Middle East and Southern Africa", said Elizabeth Randall, managing director of STR Global. "The slight increase in occupancy levels came through increased demand with a 3-percent growth for the month, which was the third month this year with demand growth. July and January were the other two months this year with demand increases of 1.5 percent and 7.4 percent, respectively".

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

• Riyadh, Saudi Arabia, achieved the highest increase in occupancy, rising 40.5 percent to 58.9 percent, followed by Muscat, Oman, with a 13.9-percent increase to 48.8 percent.

• Cairo, Egypt, fell 30.9 percent in occupancy to 41.9 percent, reporting the largest decrease in that metric.

• Riyadh reported the only double-digit ADR increase, rising 12.6 percent to US$267.06.

• Sandton, South Africa, and the surrounding areas, fell 17.4 percent in ADR to US$116.78, posting the largest decrease in that metric, followed by Beirut, Lebanon, with a 15.7-percent decrease to US$243.60.

• Riyadh jumped 58.2 percent in RevPAR to US$157.27, experiencing the largest increase in that metric, followed by Dubai with a 20.4-percent increase to US$135.10.

• Two markets ended the month with double-digit RevPAR decreases: Cairo (-39.6 percent to US$48.58) and Cape Town, South Africa (-12.7 percent to US$60.98).

Performances of key countries in September (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 September 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 0.4-percent increase to 68.1 percent, its average daily rate increased 6.6 percent to US$140.06, and its revenue per available room jumped 7.1 percent to US$95.34.

"New Zealand, which hosted the Rugby World Cup from 9 September to 23 October, reported the highest RevPAR increase for the region", said Elizabeth Randall, managing director of STR Global. "When analyzing the daily performances for Wellington and Auckland, different travel patterns became apparent. For Wellington, travelers arrived largely on the nights of Rugby matches for overnight stays but soon left the city to continue their journey around the islands. Meanwhile, in Auckland, the pattern has been slightly different during the qualifying matches, with ADR growth starting the night prior to games for two consecutive nights, which has allowed hoteliers to benefit longer".

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

• Bangkok, Thailand, achieved the largest occupancy increase, rising 26.5 percent to 68.5 percent, followed by Jakarta, Indonesia (+24.7 percent to 71.2 percent), and Kuala Lumpur, Malaysia (+21.7 percent to 77.0 percent).

• Shanghai, China, reported the largest decrease in all three key performance metrics. The market's occupancy fell 16.5 percent to 62.7 percent, its ADR was down 12.5 percent to CNY804.56, and its RevPAR decreased 27.0 percent to CNY504.39.

• Hong Kong posted the largest ADR increase, rising 24.0 percent to HKD1,985.22, followed by Jakarta with a 17.9-percent increase to IDR847,074.02.

• Three markets ended the month with RevPAR increases of 25 percent or more: Jakarta (+47.1 percent to IDR603,282.60); Bangkok (+36.8 percent to THB2,068.36); and Hong Kong (+25.0 percent to HKD1,563.68).

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



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

• Three markets reported ADR increases of 20 percent or more: Hong Kong (+23.5 percent to US$254.73); Osaka, Japan (+20.8 percent to US$141.53); and Jakarta (+20.0 percent to US$94.79).

• New Delhi, India, reported the largest decreases in ADR (-20.4 percent to US$152.34) and RevPAR (-29.0 percent to US$94.68) for the month.

• Three markets achieved RevPAR increases of more than 25 percent: Jakarta (+49.6 percent to US$67.51); Bangkok (+34.1 percent to US$66.25); and Beijing (+25.7 percent to US$80.32).

---