STR Global Reports Worldwide Hotel Performance for May 2010

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The Americas

According to data compiled 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 2010.

In May 2010, the region's occupancy rose 7.5 percent to 59.1 percent, average daily rate ended the month virtually flat with a 0.2-percent decrease to US$99.10, and revenue per available room increased 7.8 percent to US$58.54.

Among the region's key markets, Mexico City, Mexico, reported the largest occupancy increase, soaring 154.8 percent to 59.2 percent, followed by Buenos Aires, Argentina (+19.0 percent to 61.4 percent), Sao Paulo, Brazil (+17.7 percent to 70.0 percent), and San Juan, Puerto Rico (+17.4 percent to 75.6 percent). Alberta, Canada, was the only key market to post an occupancy decrease, falling 3.5 percent to 56.7 percent.

Four key markets experienced ADR increases of 15 percent or more: Rio de Janeiro, Brazil (+27.3 percent to US$164.35); Sao Paulo (+21.5 percent to US$106.92); Mexico City (+18.2 percent to US$113.66); and New York, New York (+15.0 percent to US$231.38). Chicago, Illinois, reported the largest ADR decrease, falling 5.2 percent to US$113.77, followed by San Juan with a 1.7-percent decrease to US$152.75.

Mexico City jumped 201.3 percent in RevPAR to US$67.32, reporting the largest increase in that metric. Two other markets posted RevPAR increases of more than 40 percent: Rio de Janeiro (+44.5 percent to US$112.60) and Sao Paulo (+42.9 percent to US$74.80). Alberta was the only market to report a RevPAR decrease, falling 3.0 percent to US$71.06.

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

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Asia/Pacific Region

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

In year-over-year measurements, the Asia/Pacific region's occupancy rose 15.3 percent to 63.1 percent, average daily rate increased 8.6 percent to US$125.52, and revenue per available room jumped 25.2 percent to US$79.24.

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

• Shanghai, China, experienced the largest occupancy increase, rising 55.0 percent to 71.7 percent, followed by Beijing, China (+34.4 percent to 65.3 percent); Hong Kong, China (+28.7 percent to 78.3 percent); and Osaka, Japan (+27.8 percent to 77.3 percent).

• Bangkok, Thailand, posted the only occupancy decrease, falling 38.4 percent to 26.2 percent.

• Shanghai reported the largest ADR increase, up 29.3 percent to US$142.52.

• Four markets reported ADR decreases: Bangkok (-11.9 percent to US$76.77); New Delhi, India (-7.7 percent to US$148.37); Osaka (-5.9 percent to US$119.95); and Mumbai, India (-4.4 percent to US$171.84).

• Shanghai's RevPAR soared 100.5 percent to US$102.18, reporting the largest increase in that metric. Three other markets posted RevPAR increases of more than 40 percent: Hong Kong (+51.9 percent to US$145.58); Beijing (+45.4 percent to US$62.74); and Kuala Lumpur, Malaysia (+40.4 percent to US$71.65).

• Bangkok reported the only RevPAR decrease, falling 45.8 percent to US$20.10.

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



"The Asia Pacific region continues to lead the RevPAR recovery of the global regions and it is good to see that both occupancy and average daily rate improved since the beginning of the year", said Elizabeth Randall, STR Global's managing director.  "The RevPAR growth rate slowed slightly from 29 percent in March and 26 percent in April to now 25 percent in May, which is a still impressive comeback from last year.

"The Expo 2010, which started in May, brought Shanghai the top spot of RevPAR growth (+101 percent) for May", Randall added. "Shanghai expects 70 million visitors before the Expo's closure at the end of October. Bangkok suffered from the political protests and travel advisories against it in April and May and reported the only RevPAR decline of key cities in Asia Pacific."

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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 May 2010, according to data compiled by STR Global.

Year-over-year May 2010 figures for Europe (U.S. dollars, euros and British pounds):



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

• Birmingham, England, experienced the largest increases in all three key performance metrics. The market's occupancy rose 19.0 percent to 71.9 percent, ADR was up 38.6 percent to EUR91.47, and RevPAR jumped 65.0 percent to EUR65.80.

• Athens, Greece, reported the largest occupancy decrease, falling 6.7 percent to 65.7 percent, followed by Gothenburg, Sweden (-5.8 percent to 65.2 percent), and Cardiff, Wales (-5.7 percent to 66.0 percent).

• Tel Aviv, Israel, was the only market, excluding Birmingham, to report an ADR increase of more than 20 percent, rising 26.1 percent to EUR192.31.

• Helsinki, Finland, posted the largest ADR decrease, falling 19.9 percent to EUR95.16, followed by Prague, Czech Republic, with a 14.4-percent decrease to EUR79.73.

• Excluding Birmingham, four markets experienced RevPAR increases of more than 25 percent: Tel Aviv (+47.8 percent to EUR160.31); Madrid, Spain (+29.2 percent to EUR78.27); Florence, Italy (+27.1 percent to EUR123.44); and Istanbul, Turkey (+26.8 percent to EUR130.62).

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


"RevPAR recovery continues taking hold across Europe with May showing the highest RevPAR growth and RevPAR achieved since the beginning of the year", said Elizabeth Randall, managing director of STR Global. "We have seen now six months of RevPAR and occupancy improvements since Dec 2009, and average rates got better over the last three months."

Randall added that Birmingham's performance was boosted by the fact that it hosted more than 50,000 visitors for the IPEX trade fair and event.

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Middle East & Africa

The Middle East/Africa region reported favorable results in the three key measurements for May 2010 when reported in U.S. dollars, according to data compiled by STR Global.

The region's occupancy ended the month virtually flat with a 0.8-percent increase to 62.2 percent, average daily rate increased 1.3 percent to US$144.35, and revenue per available room grew 2.1 percent to US$89.75.

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

• Amman, Jordan, reported the largest occupancy increase, rising 13.9 percent to 71.1 percent, followed by Dubai, United Arab Emirates, with an 8.1-percent increase to 70.4 percent.

• Abu Dhabi, UAE, reported the largest decreases in all three key metrics: Occupancy fell 24.8 percent to 55.2 percent; ADR dropped 37.0 percent to US$188.86; and RevPAR decreased 52.6 percent to US$104.17.

• Johannesburg, South Africa, was the only market, besides Abu Dhabi, to report a double-digit occupancy decrease, falling 11.1 percent to 57.7 percent.

• Two markets posted double-digit ADR increases: Beirut, Lebanon (+27.4 percent to US$210.57), and Johannesburg (+19.5 percent to US$106.53).

• Muscat, Oman, fell 8.8 percent in ADR to US$202.42, followed by Dubai with a 7.4-percent decrease to US$191.94.

• Beirut rose 24.6 percent in RevPAR to US$147.66, followed by Amman with a 17.8-percent increase to US$114.44.

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


"We saw good performances across Africa outbalancing performance in the Middle East for May,' said Elizabeth Randall, STR Global's managing director. "The build-up to the World Cup didn't translate into occupancy growth for the Southern Africa region, declining 5 percent compared to May 2009. That gave the region the lowest occupancy (55 percent) of the global sub-regions. On the other hand Northern Africa achieved the highest occupancy (70 percent) of all sub-regions."

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