Global Hotel Performance Indexes Post Mostly Positive Results in July

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The Americas

According to data compiled by Smith Travel Research (STR) and STR Global, the Americas region recorded positive results in the three key performance metrics when reported in U.S. dollars for July 2010.

The region's occupancy rose 6.9 percent to 67.9 percent, average daily rate went up 1.7 percent to US$100.93, and revenue per available room increased 8.8 percent to US$68.53.

Among the key markets in the region, Buenos Aries, Argentina, reported the largest occupancy increase, jumping 87.3 percent to 62.5 percent, followed by Santiago, Chile, with a 28.5-percent increase to 65.6 percent. Manitoba/Saskatchewan, Canada, ended the week virtually flat with a 0.2-percent decrease to 71.2 percent, and was the only occupancy decrease.

Three markets experienced ADR increases of more than 15 percent: Rio de Janeiro, Brazil (+20.0 percent to US$155.18); Sao Paulo, Brazil (+17.6 percent to US$104.74); and Buenos Aires (+15.8 percent to US$134.48). San Juan, Puerto Rico, posted the only ADR decrease, falling 3.7 percent to US$144.00.

Buenos Aires led the RevPAR increases, rising 116.9 percent to US$83.99, followed by Santiago (+38.3 percent to US$86.37) and Toronto, Canada (+28.2 percent to US$89.53). San Juan fell 1.5 percent in RevPAR to US$113.65, reporting the only decrease in that metric.

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

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Asia & Pacific Regions

Hotels in the Asia/Pacific region experienced increases in all three key performance metrics for July 2010 when reported in U.S. dollars. 

In year-over-year measurements, the Asia/Pacific region's occupancy rose 9.6 percent to 67.3 percent, average daily rate increased 11.9 percent to US$124.69, and revenue per available room jumped 22.7 percent to US$83.94.

"July was another good month for Asia/Pacific with an increase of more than 20 percent RevPAR, resulting from continued strong demand (+13 percent) with only moderate supply increases (+3 percent)", said Elizabeth Randall, managing director of STR Global. "Whilst July was the first month this year with occupancy increases below 10 percent, which was influenced by the region's reporting of lower drops in occupancy levels in July 2009, we would expect to see continuance of the current trend. The year-to-date RevPAR, though, is still below year-to-date 2008 results (US$82 compared to US$93).

"The World Expo sustained Shanghai's performance and is expected to do so until the end of October", Randall said. "Jakarta has since recovered from the terrorist attacks on the JW Marriott and Ritz-Carlton in July 2009".

Highlights from key market performers for July 2010: (year-over-year comparisons, all currency in U.S. dollars)

• Shanghai, China, reported the largest increases in all three key performance metrics. The market's occupancy rose 40.5 percent to 73.2 percent, ADR was up 31.3 percent to US$125.15, and RevPAR soared 84.5 percent to US$91.66.
• Jakarta, Indonesia, followed Shanghai with a 22.2-percent occupancy increase to 77.3 percent.
• Two markets reported occupancy decreases: Bangkok, Thailand (-2.5 percent to 51.8 percent), and Phuket, Thailand (-2.5 percent to 52.5 percent).
• Aside from Shanghai, three markets achieved ADR increases of more than 20 percent: Hong Kong, China (+26.4 percent to US$178.93); Kuala Lumpur, Malaysia (+26.3 percent to US$120.44); and Tokyo, Japan (+21.9 percent to US$255.91).
• None of the key markets of the region reported ADR decreases for the month.
• Three markets, excluding Shanghai, ended the month with RevPAR increases of more than 40 percent: Hong Kong (+46.3 percent to US$145.03); Jakarta (+44.8 percent to US$60.62); and Kuala Lumpur (+42.5 percent to US$100.98).
• Bangkok reported the only RevPAR decrease, falling 1.8 percent to US$44.68.

Performances of key countries in July 2010 (all monetary units in local currency):

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European Market

The European hotel industry posted mixed results in year-over-year metrics when reported in U.S. dollars, euros and British pounds for July 2010.
   
Year-over-year July 2010 figures for Europe (U.S. dollars, euros and British pounds):



"Europe continued to report solid results with growth in all performance indicators", said Elizabeth Randall, managing director of STR Global. "Only Southern Europe's ADR remains sluggish. After reporting growth in June, ADR was just down 0.7 percent compared to July 2009. Out of the global regions, Europe achieved the highest occupancy with 71 percent for the month, resulting out of good performances in Northern and Western Europe. We have now seen eight months of occupancy improvements (since December 2009) and five months of ADR picking up (since 10 March)".

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

• Three key markets experienced occupancy increases of more than 20 percent: Istanbul, Turkey (+27.6 percent to 84.3 percent); Helsinki, Finland (+21.9 percent to 66.0 percent); and Cologne, Germany (+20.2 percent to 61.0 percent).
• Oslo, Norway, posted the largest occupancy decrease, falling 8.3 percent to 52.6 percent, followed by Malmo, Sweden, with a 7.2-percent decrease to 72.0 percent.
• Stockholm, Sweden, rose 23.6 percent in ADR to EUR89.77, reporting the largest increase in that metric. Three other markets also reported ADR increases of more than 20 percent: Gothenburg, Sweden (+23.4 percent to EUR95.36); Munich, Germany (+22.9 percent to EUR106.46); and London, England (+22.8 percent to EUR172.80).
• Dublin, Ireland, reported the largest ADR decrease, falling 13.4 percent to EUR77.15, followed by Budapest, Hungary, with an 11.5-percent decrease to EUR64.57.
• Five markets achieved RevPAR increases of more than 30 percent: Istanbul (+42.6 percent to EUR130.06); Vienna, Austria (+38.7 percent to EUR82.18); Munich (+37.3 percent to EUR90.30); Düsseldorf, Germany (+33.6 percent to EUR54.12); and Cologne (+33.0 percent to EUR46.56).
• Athens fell 14.5 percent in RevPAR to EUR60.23, reporting the largest decrease in that metric.

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

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Middle East & Africa Regions

The Middle East/Africa region reported favorable results in the three key performance measurements for July 2010 when reported in U.S. dollars.

The region's occupancy ended the month virtually flat with a 0.1-percent increase to 61.3 percent, average daily rate increased 11.8 percent to US$145.00, and revenue per available room grew 11.8 percent to US$88.82.

"The good news for the Middle East is that demand showed continued growth against last year, and the sub region still recorded one of the highest ADRs (US$162) only beaten by the strong ADR in Southern Africa (US$175) due to the FIFA World Cup, which ended mid-July", said Elizabeth Randall, managing director of STR Global. "However, the Middle East was the only sub region reporting RevPAR declines in July. It will be interesting to see if the slowing decline will continue during the coming months. Northern and Southern Africa continued on their RevPAR recovery path, and the smooth running of a joyful World Cup will bring additional interest to the region".

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

• Amman, Jordan, achieved the largest and only double-digit occupancy increase, rising 14.0 percent to 68.3 percent.
• Abu Dhabi, United Arab Emirates, reported the largest occupancy decrease, falling 23.0 percent to 51.6 percent. The market also reported the largest decreases in ADR (-28.1 percent to US$141.54) and RevPAR (-44.7 percent to US$73.10).
• Cape Town, South Africa, rose 99.4 percent in ADR to US$220.76, followed by Johannesburg, South Africa, with a 63.5-percent increase to US$151.20.
• Two markets reported RevPAR increases of more than 70 percent: Cap Town (+80.4 percent to US$103.32) and Johannesburg (+70.8 percent to US$98.26).
• Dubai, UAE, was the only market, excluding Abu Dhabi, to report a RevPAR decrease, falling 1.3 percent to US$105.53. Riyadh ended the month virtually flat with a 0.3-percent decrease to US$113.67.

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

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