Global Hotel Performance Up in Most Markets During August

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The Americas

According to the latest 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 August 2010.

The region's occupancy rose 6.3 percent to 64.2 percent, average daily rate went up 1.7 percent to US$100.45, and revenue per available room increased 8.1 percent to US$64.48.

Among the key markets in the region, Buenos Aires, Argentina, experienced the largest occupancy increase, rising 45.0 percent to 61.3 percent, followed by Santiago, Chile, with a 38.0-percent increase to 71.6 percent. Four markets reported occupancy decreases: San Juan, Puerto Rico (-5.7 percent to 72.8 percent); Manitoba/Saskatchewan, Canada (-3.9 percent to 69.4 percent); Alberta, Canada (-2.1 percent to 65.8 percent); and Vancouver, Canada (-0.1 percent to 81.6 percent).

Rio de Janeiro, Brazil (+20.8 percent to US$162.01), and Sao Paulo, Brazil (+20.8 percent to US$113.80), achieved the largest ADR increases for the month. San Juan reported the only ADR decrease, falling 2.7 percent to US$137.07.

Santiago experienced the largest RevPAR increase for the month, rising 51.3 percent to US$100.07. Four other markets posted RevPAR increases of more than 25 percent: Buenos Aires (+47.6 percent to US$75.27); Sao Paulo (+33.1 percent to US$79.26); Rio de Janeiro (+31.9 percent to US$113.15); and Mexico City, Mexico (+29.4 percent to US$67.17).

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 2010.

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



"The recovery in the European hotel market continues in August with increases across all three performance measures when measured in euros", said Elizabeth Randall, managing director of STR Global. "Whilst these results are still influenced by the weak comparables last year, the better economic conditions and the return of the business and MICE segments have assisted the recovery. This demand pick up has helped hoteliers to start rebuilding their average daily rates which is for year to August, however, still about €10 below the YTD results achieved in 2008. A notable exception is London, which aided by the weak UK£ exchange rate, has achieved the highest YTD RevPAR results (£99.33) this year since 2004. June and July 2010 were the best performing months across that time frame".

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

• Frankfurt, Germany, experienced the largest occupancy increase, rising 22.6 percent to 58.2 percent, followed by Lisbon, Portugal (+19.7 percent to 77.5 percent), and Antwerp, Belgium (+16.8 percent to 66.5 percent).

• Three markets posted occupancy decreases of more than 5 percent: Athens, Greece (-7.8 percent to 52.5 percent); Geneva, Switzerland (-7.2 percent to 54.3 percent); and Aberdeen, Scotland (-6.8 percent to 69.4 percent).

• Three markets ended the month with ADR increases of more than 20 percent: Stockholm, Sweden (+39.9 percent to EUR130.45); Malmo, Sweden (+25.2 percent to UER85.99); and Zurich, Switzerland (+22.4 percent to EUR169.74).

• Barcelona, Spain, posted the only double-digit ADR decrease, falling 11.8 percent to EUR98.56.

• Four markets achieved RevPAR increases of more than 30 percent: Stockholm (+50.8 percent to EUR109.45); Frankfurt (+42.9 percent to EUR51.41); Amsterdam, Netherlands (+34.5 percent to EUR106.56); and Tel Aviv, Israel (+30.2 percent to EUR196.02).

• Barcelona fell 11.2 percent in RevPAR to EUR75.45, reporting the largest decrease in that metric.

Performances of key countries in August (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 August 2010 when reported in U.S. dollars.

In year-over-year measurements, the Asia/Pacific region's occupancy rose 5.8 percent to 67.2 percent, average daily rate increased 10.0 percent to US$129.00, and revenue per available room jumped 16.5 percent to US$86.74.

"The double-digit RevPAR growth across all sub-regions in Asia/Pacific continued in August, underlining the market's leading position in RevPAR recovery", said Elizabeth Randall, managing director of STR Global. "The continued strength in economic growth coupled with world events in selected destinations (i.e. the first-ever Youth Olympics in Singapore) brought even more attention to the region in August.

"Where last year pictures of ship upon ship sitting idle in Singapore harbor made the news, this year Singapore presented with Marina Bay Sands new attractions and hotels to the market and with the economy picking up, Singapore saw double-digit monthly improvements in demand this year resulting in occupancy levels of around and over 80% this year", said Randall. "Not to mention that this demand fuelled improvements in average daily rate".

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

• Shanghai, China, reported the largest occupancy increase, rising 40.2 percent to 69.5 percent, followed by Beijing, China, with a 14.4 percent increase to 66.6 percent.

• Four markets reported occupancy decreases: Kuala Lumpur, Malaysia (-9.8 percent to 64.4 percent); Bangkok, Thailand (-8.7-percent to 51.4 percent); Osaka, Japan (-4.2 percent to 79.2 percent); and Phuket, Thailand (-3.3 percent to 56.4 percent).

• Hong Kong, China, achieved the largest ADR increase, rising 31.4 percent to US$180.75, followed by Shanghai (+30.0 percent to US$123.96) and Bali, Indonesia (+17.5 percent to US$169.92).

• Shanghai jumped 82.4 percent in RevPAR to US$86.21, reporting the largest increase in that metric. Four other markets posted RevPAR increases of more than 20 percent: Hong Kong (+34.8 percent to US$145.92); Brisbane, Australia (+23.1 percent to US$134.98); Beijing (+22.1 percent to US$58.78); and Manila, Philippines (+20.4 percent to US$74.51).

• Bangkok reported the largest RevPAR decrease, falling 5.4 percent to US$45.23, followed by Phuket (-1.9 percent to US$45.63) and Osaka (-0.9 percent to US$103.17).

Performances of key countries in August 2010 (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 measurements for August 2010 when reported in U.S. dollars.

The region's occupancy ended the month with a 9.4-percent decrease to 53.0 percent, average daily rate increased 7.4 percent to US$137.83, and revenue per available room fell 2.8 percent to US$73.05.

"Ramadan, which took place 11 August-9 September 2010, impacted the August results for the Middle East/Africa", said Elizabeth Randall, managing director of STR Global. "August was the first month this year reporting an increase in ADR across the Middle East (+4.3 percent). Whilst one month doesn't make a trend, it is a good sign to see the sub-region finally picking up rate. The continuing increase in supply limits the short to medium-term recovery of occupancy. When considering the year-to-date results without the new supply which came on line in 2010, we get a small increase in occupancy. Post the excitement of the football World Cup, Africa reported a monthly decline in demand and occupancy levels".

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

• Riyadh, Saudi Arabia, experienced the only occupancy increase, rising 9.9 percent to 42.6 percent.

• Three markets reported occupancy decreases of more than 20 percent: Beirut, Lebanon (-37.3 percent to 47.1 percent); Cairo, Egypt (-25.0 percent to 43.1 percent); and Abu Dhabi, United Arab Emirates (-21.2 percent to 48.0 percent).

• Johannesburg, South Africa, rose 27.0 percent in ADR to US$105.84, reporting the largest increase in that metric, followed by Cape Town, South Africa, with a 17.5-percent increase to US$122.57.

• Abu Dhabi posted the largest ADR decrease, falling 28.0 percent to US$131.58.

• Three markets reported RevPAR increases for the month: Johannesburg (+17.2 percent to US$58.59); Riyadh (+11.4 percent to US$89.67); and Jeddah, Saudi Arabia (+2.5 percent to US$137.41).

• Abu Dhabi (-43.3 percent to US$63.12) and Beirut (-43.2 percent to US$117.23) reported the largest RevPAR decreases.

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

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