Hotel Markets Worldwide Deliver Positive Performance Results in September

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According to Smith Travel Research and STR Global, the global hotel marketplace posted mostly positive results during the month of September 2010. Here are the highlights of that report.

The Americas

The Americas region recorded positive results in the three key performance metrics when reported in U.S. dollars for September 2010, according to data compiled by STR and STR Global.

The region's occupancy rose 6.6 percent to 60.1 percent, average daily rate went up 2.3 percent to US$101.07, and revenue per available room increased 9.1 percent to US$60.78.

Among the key markets in the region, Santiago, Chile, achieved the largest occupancy increase, rising 17.1 percent to 66.6 percent, followed by Miami, Florida, with a 12.1-percent increase to 59.3 percent.

San Juan, Puerto Rico, was the only market to experience decreases in any of the three key metrics. The market's occupancy fell 5.5 percent to 59.8 percent, ADR ended the month virtually flat with a 0.2-percent decrease to US$135.67, and RevPAR was down 5.7 percent to US$81.08.

Rio de Janeiro, Brazil, posted the largest ADR increase, rising 24.7 percent to US$190.18, followed by Sao Paulo, Brazil (+16.5 percent to US$115.50), and Santiago (+15.0 percent to US$142.61).

Five markets reported RevPAR increases of more than 20 percent: Rio de Janeiro (+37.1 percent to US$138.79); Santiago (+34.7 percent to US$94.91); Sao Paulo (+29.2 percent to US$81.15); Mexico City, Mexico (+27.0 percent to US$71.97); and Montreal, Canada (+22.5 percent to US$100.75).

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

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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 2010.

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



"September saw the highest monthly occupancy and average room rate so far for this year", said Elizabeth Randall, managing director at STR Global. "With 74.8 percent occupancy and €106.68 ADR, Europe also achieved its highest RevPAR of €79.78. One has to go back to September 2008 to get a similar RevPAR (€82.86). As the continued RevPAR recovery gains strength, the outlook looks brighter for the European markets despite the continued risks to the wider economies and the hotel markets".

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

• Prague, Czech Republic, reported the largest occupancy increase, rising 20.0 percent to 80.4 percent, followed by Istanbul, Turkey, with a 19.8-percent increase to 81.4 percent.

• Two markets posted occupancy decreases of more than 5 percent: Tel Aviv, Israel (-6.1 percent to 57.7 percent), and Athens, Greece (-5.4 percent to 72.9 percent).

• Stockholm, Sweden, experienced the largest ADR increase, rising 34.8 percent to EUR152.18, followed by Cologne, Germany (+30.0 percent to EUR119.21), and Geneva, Switzerland (+29.1 percent to EUR241.08).

• Two markets posted double-digit ADR decreases: Vienna, Austria (-22.3 percent to EUR95.83), and Aberdeen, Scotland (-15.5 percent to EUR83.58).

• Four markets experienced RevPAR increases of more than 35 percent: Stockholm (+49.1 percent to EUR127.44); Geneva (+45.3 percent to EUR183.69); Cologne (+42.5 percent to EUR95.48); and Munich, Germany (+37.5 percent to EUR134.44).

• Vienna (-15.2 percent to EUR81.66) and Aberdeen (-13.8 percent to EUR64.23) reported the largest RevPAR decreases for the month.

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

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Asia / Pacific Markets

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

In year-over-year measurements, the Asia/Pacific region's occupancy rose 7.4 percent to 66.9 percent, average daily rate increased 11.0 percent to US$135.54, and revenue per available room jumped 19.2 percent to US$90.71.

"The September numbers were eagerly anticipated results as they should give us a good indication how strong the RevPAR recovery across the region really is", said Elizabeth Randall, managing director of STR Global. "September 2009 was the first month last year in which hoteliers reported only single-digit declines compared to the prior year. Therefore it was interesting to see if the double-digit growth we have seen so far this year would continue this month".

"September 2010 is now the 10th month with around 20 percent RevPAR growth for Asia/Pacific", Randall continued. "One particularly strong market is Shanghai, China. The World Expo in Shanghai, which broke previous Expo attendance records and which ends in October, boosted Shanghai's year-to-date RevPAR performance 64 percent compared to the same timeframe last year".

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

• Shanghai achieved the largest increases in all three key performance metrics. The market's occupancy rose 29.5 percent to 73.3 percent, ADR increased 34.2 percent to US$142.64, and RevPAR jumped 73.8 percent to US$104.50.

• Jakarta, Indonesia, ended the month with a 22.5-percent occupancy increase to 58.2 percent.

• Two markets posted occupancy decreases: Bangkok, Thailand (-1.5 percent to 53.7 percent), and Seoul, South Korea (-0.6 percent to 83.7 percent).

• Two markets, excluding Shanghai, reported ADR increases of more than 20 percent: Kuala Lumpur, Malaysia (+21.7 percent to US$113.24), and New Delhi, India (+20.2 percent to US$186.77).

• Along with Shanghai, Jakarta (+45.5 percent to US$46.96) and Kuala Lumpur (+39.4 percent to US$71.38) reported largest RevPAR increases for the month.

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

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Middle East & Africa

The Middle East/Africa region reported increases in all three key performance measurements for September 2010 when reported in U.S. dollars.

The region's occupancy ended the month with a 5.6-percent increase to 58.2 percent, average daily rate rose 8.2 percent to US$147.39, and revenue per available room went up 14.2 percent to US$85.80.

"The Middle East/Africa region's performance was boosted in September with strong performances across Northern Africa. However, the subregion's 15.9 percent ADR increase to US$87.73 is still only half of the average rates achieved across the Middle East subregion (US$189.18)", said Elizabeth Randall, managing director of STR Global. "We mentioned last month that we were looking forward to seeing September results, as the Middle East subregion had reported the first ADR increase in August. Unfortunately, we have to wait for this trend to stabilize. The impact of the changing Ramadan periods from 2009 to 2010 is making a reading of the current month's performance harder, and it will be interesting to see how October ends".

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

• Amman, Jordan, achieved the largest occupancy increase, rising 39.2 percent to 57.7 percent, followed by Riyadh, Saudi Arabia, with a 22.3-percent increase to 41.9 percent.

• Three markets posted occupancy decreases: Johannesburg, South Africa (-10.0 percent to 56.7 percent); Jeddah, Saudi Arabia (-8.6 percent to 63.1 percent); and Abu Dhabi, United Arab Emirates (-7.8 percent to 57.5 percent).

• Johannesburg reported the largest ADR increase, rising 32.5 percent to US$124.34.

• Abu Dhabi fell 27.8 percent in ADR to US$142.65, reporting the largest decrease in that metric.

• Three markets experienced RevPAR increases of more than 30 percent: Amman (+48.5 percent to US$82.84); Beirut, Lebanon (+31.3 percent to US$193.94); and Cairo, Egypt (+30.1 percent to US$81.73).

• Two markets reported RevPAR decreases for the month: Abu Dhabi (-33.4 percent to US$81.96) and Jeddah (-9.1 percent to US$132.55).

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

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