Global Hotel Sector Posts Mixed Results in August, Says STR

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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 August 2011.

The Americas region ended August with a 3.5-percent increase in occupancy to 66.3 percent, average daily rate was up 3.8 percent to US$104.58, and revenue per available room rose 7.4 percent for the month to US$69.34.

Among the region's key markets, Miami, Florida, achieved the only double-digit occupancy increase, rising 11.1 percent to 73.6 percent. Toronto, Canada, fell 3.6 percent in occupancy to 74.1 percent, reporting the largest decrease in that metric, followed by Montreal, Canada, with a 3.4-percent decrease to 75.2 percent.

Sao Paulo, Brazil, jumped 28.9 percent in ADR to US$148, experiencing the largest increase in that metric. Three other markets also experienced ADR increases of 15 percent or more: Rio de Janeiro, Brazil (+15.3 percent to US$190.61); San Francisco (+15.3 percent to US$159.76); and Buenos Aires, Argentina (+15 percent to US$140.69). Washington, D.C., ended the month virtually flat with a 0.7-percent decrease to US$123.34, reporting the only decrease in that metric.

Three markets achieved RevPAR increases of more than 20 percent: Sao Paulo (+36.5 percent to US$109.42); Miami (+23.2 percent to US$89.86); and Rio de Janeiro (+21.7 percent to US$140.37. Washington, D.C., reported the only RevPAR decrease, falling 3.5 percent to US$83.99.

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

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Europe

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

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



"Demand continued to grow across Europe for August and, coupled with limited supply increases, that bodes well for European hoteliers", said Elizabeth Randall, managing director of STR Global. "Whilst we saw the first monthly average rate decline for this year in August, it can mainly be attributed to exchange rate effects. Looking at the region in constant currency, Europe still reported a year-on-year 0.6-percent increase."

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

• Madrid, Spain, jumped 27.8 percent in occupancy to 56.4 percent, reporting the largest increase in that metric, followed by Milan, Italy (15.8 percent to 42.6 percent) and Florence, Italy (+12.2 percent to 66.1 percent.

• Istanbul, Turkey, fell 20.7 percent in occupancy to 53.9 percent, reporting the largest decrease in that metric, followed by Zurich, Switzerland (-11.3 percent to 66.2 percent).

• Paris, France, achieved the largest ADR increase, rising 19.7 percent to EUR217.60, followed by Florence with a 15.2-percent increase to EUR141.39.

• Birmingham, United Kingdom, ended the month with the only double-digit ADR decrease, falling 12.4 percent to EUR49.60.

• Three markets experienced RevPAR increases of more than 20 percent: Madrid (+39.8 percent to EUR41.46); Florence (+29.2 percent to EUR93.42); and Paris (+21.3 percent to EUR153.72).

• Three markets reported double-digit RevPAR decreases: Istanbul (-17.9 percent to EUR75.14); Stockholm, Sweden (-14.5 percent to EUR93.63); and Geneva, Switzerland (-13.5 percent to EUR108.60).

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

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Middle East & Africa

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

The region ended the month with a 9.5-percent decrease in occupancy to 48.3 percent, a 12.9-percent rise in average daily rate to US$149.65, and a 2.2-percent increase in revenue per available room to US$72.31.

"The holy month of Ramadan fell together with the month of August this year, reducing demand across the region", said Elizabeth Randall, managing director of STR Global. "This, in addition to the consequences following the Arab Spring, impacted this month's results.  Average room rates grew across the regions with the only reported declines across Northern Africa".

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

• Abu Dhabi, United Arab Emirates, reported the only occupancy increase, rising 3.9 percent to 49.8 percent.

• Cairo, Egypt (-50.9 percent to 21.8 percent), and Amman, Jordan (-37.7 percent to 28.2 percent), posted the largest occupancy decreases for the month.

• Riyadh, Saudi Arabia achieved the largest ADR increase, rising 6.0 percent to US$223.00, followed by Jeddah, Saudi Arabia with a 5.3-percent increase to US$216.32.

• Beirut, Lebanon, fell 20.0 percent in ADR to US$202.80, experiencing the largest decrease in that metric, followed by Abu Dhabi with a 16.7-percent decrease to US$109.54.

• Cape Town, South Africa, was the only key market to achieve a RevPAR increase, rising 3.7 percent to US$53.27.

• Three markets reported RevPAR decreases of more than 30 percent: Cairo (-54.9 percent to US$24.46); Amman (-39.2 percent to US$38.37); and Beirut (-34.7 percent to US$76.87).

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

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Asia-Pacfic

Hotels in the Asia/Pacific region experienced mostly positive results in the three key performance metrics during August 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 0.1-percent increase to 68.1 percent, average daily rate increased 12.2 percent to US$142.86, and revenue per available room jumped 12.3 percent to US$97.32.

"We see almost equal demand and supply growth across Asia/Pacific, keeping occupancy levels steady for the moment", said Elizabeth Randall, managing director of STR Global. "Average room rates continue to improve against the prior year. Looking at Japan, five months post the tragic events in March; hoteliers reported 81 percent occupancy, matching August 2010 results.  Demand is returning month on month and we would expect it to soon grow again against last year".

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

• Bangkok, Thailand, reported the largest occupancy increase, rising 26.7 percent to 65.3 percent, followed by Phuket, Thailand, with a 25.2-percent increase to 71.8 percent.

• Three markets reported double-digit occupancy decreases: Shanghai, China (-21.1 percent to 56.3 percent); New Delhi, India (-19.4 percent to 52.9 percent); and Jakarta, Indonesia (-13.4 percent to 51.7 percent).

• Hong Kong jumped 27.9 percent in ADR to HKD1,749.51, achieving the largest increase in that metric.

• Shanghai (-12.5 percent to CNY714.45) and Tokyo, Japan (-9.2 percent to JPY13,021.13), reported the largest ADR decreases.

• Three markets experienced RevPAR increases of more than 30 percent: Hong Kong (+34.3 percent to HKD1,502.20); Bangkok (+32.2 percent to THB1,878.67); and Phuket (+31.2 percent to THB2,000.64).

• Shanghai RevPAR fell 31.0 percent to CNY401.89, reporting the largest decrease in that metric, followed by New Delhi with a 24.7-percent decrease to INR3,592.66.

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



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

• Three markets experienced ADR increases over 25 percent: Brisbane, Australia (+31.3 percent to US$201.61); Hong Kong (+27.6 percent to US$224.46); and Sydney, Australia (+25.2 percent to US$185.59).

• Shanghai (-6.6 percent to US$111.98) and New Delhi (-5.0 percent to US$147.15) posted the largest ADR decreases for the month.

• Bangkok jumped 38.4 percent in RevPAR to US$62.50, reporting the largest increase in that metric, followed by Phuket (+37.4 percent to US$66.56) and Hong Kong (+34.1 percent to US$192.73).

• Two markets reported double-digit RevPAR decreases: Shanghai (-26.3 percent to US$62.99) and New Delhi (-23.5 percent to US$77.90).

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