STR Global Reports Worldwide Hotel Performance Results for October 2009

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The Americas

(LONDON, UK & HENDERSONVILLE, TN) -- The Americas region recorded declines in all three key performance metrics when reported in U.S. dollars for October 2009, according to data compiled by STR and STR Global.

In year-over-year comparisons, occupancy for the region dropped 6.2 percent to 58.2 percent, average daily rate declined 7.3 percent to US$100.33, and revenue per available room decreased 13.0 percent to US$58.38.

Among the key markets, San Juan, Puerto Rico, reported the largest occupancy increase, up 5.6 percent to 64.4 percent, followed by San Francisco, California, with a 5.2-percent increase to 83.7 percent. Two markets reported double-digit occupancy decreases: Alberta, Canada (-14.0 percent to 58.4 percent), and Mexico City, Mexico (-10.6 percent to 59.5 percent).

Rio de Janeiro, Brazil (+32.5 percent to US$181.87), and Sao Paulo, Brazil (+31.1 percent to US$111.99), posted the largest ADR increases. New York, New York, experienced the largest ADR decrease, falling 18.3 percent to US$254.36, followed by Mexico City with a 16.0-percent decrease to US$107.68.

Two markets reported double-digit RevPAR increases: Sao Paulo (+29.1 percent to US$76.20) and Rio de Janeiro (+29.0 percent to US$129.90). Five markets posted RevPAR decreases of 15 percent or more: Mexico City (-24.9 percent to US$64.07); Miami, Florida (-16.8 percent to US$75.89); Chicago, Illinois (-16.4 percent to US$82.54); New York (-16.2 percent to US$215.69); and Los Angeles, California (-15.0 percent to US$78.13).

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

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Asia - Pacific Regions

Hotels in the Asia/Pacific region experienced decreases when reported in U.S. dollars for all three key performance metrics for October 2009.

In year-over-year measurements, the Asia/Pacific region's occupancy fell 0.6 percent to 67.1 percent; average daily rate declined 2.5 percent to US$128.09; and revenue per available room fell 3.1 percent to US$85.89.

"Coming into the last quarter of 2010, which compares to very weak comparables at the end of 2008, all sub-regions across Asia/Pacific saw occupancy stabilising in the month of October, helping to soften RevPAR decline by only 3.1 percent overall", said Elizabeth Randall, managing director of STR Global. "However great it is to see monthly improvements, hotels across the region have lost US$22.04 in RevPAR value year-to-date compared to year-to-October 2008. The star performers in terms of monthly RevPAR growth across the region are Australia, Guam, Indonesia, Malaysia, New Zealand and South Korea, which benefited partly due to a weak U.S. Dollar exchange rate".

Among the key markets in the region, New Delhi, India, reported the largest occupancy increase, up 14.7 percent to 77.5 percent, followed by Kuala Lumpur, Malaysia (+12.4 percent to 74.1 percent), and Sydney, Australia (+11.9 percent to 88.0 percent). Two markets posted double-digit occupancy decreases: Manila, Philippines (-11.3 percent to 63.4 percent), and Bali, Indonesia (-10.8 percent to 77.1 percent).

Melbourne, Australia (+28.5 percent to US$160.78), and Sydney (+28.5 percent to US$161.24) reported the largest ADR increases. Two other markets also reported ADR increases of more than 20 percent: Brisbane, Australia (+23.2 percent to US$153.32), and Seoul, South Korea (+22.7 percent to US$170.59). Phuket, Thailand (-22.8 percent to US$72.72), Shanghai, China (-22.2 percent to US$117.22), and Beijing, China (-22.1 percent to US$95.68), reported the largest ADR decreases.

Sydney experienced the largest RevPAR increase, jumping 43.8 percent to US$141.84. Three markets reported RevPAR decreases of more than 20 percent: Phuket (-28.2 percent to US$42.47); Shanghai (-25.2 percent to US$66.82); and Beijing (-20.5 percent to US$60.56).

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

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Europe

The European hotel industry posted mixed results in year-over-year results when reported in U.S. dollars, euros and British pounds for October 2009.

Figures for occupancy, average daily rate and revenue per available room ranged from double-digit losses to double-digit gains, depending on the market and the currency used for comparison.

"Europe saw the best monthly RevPAR improvement compared to the other three global regions", said Elizabeth Randall, managing director of STR Global. "European RevPAR only fell 1.6 percent, boosted by a 0.7-percent increase in ADR in U.S. Dollar terms compared to October 2008. This is good news but it needs to be noted that Europe was the first region that saw strong RevPAR declines in the last quarter 2008. Eastern Europe remained one of the harder-hit European sub-regions in October whilst average room rates improved across Southern and Western Europe".

Year-over-year October 2009 figures for Europe (U.S. dollars, euros and British pounds):




Highlights from key market performers for October include (year-over-year results, all currency figures are in euros):

• Tel Aviv, Israel, reported the largest occupancy increase, jumping 33.2 percent to 78.1 percent. Four other markets experienced occupancy increases of more than 5 percent: Cardiff, Wales (+9.3 percent to 79.1 percent); Venice, Italy (+7.1 percent to 69.1 percent); Rome, Italy (+7.0 percent to 77.7 percent); and Düsseldorf, Germany (+6.1 percent to 67.4 percent).

• Lisbon, Portugal, posted the largest occupancy decline, falling 9.3 percent to 68.1 percent, followed by Athens, Greece (-8.7 percent to 73.6 percent), and Budapest, Hungary (-8.6 percent to 63.2 percent).

• Cologne, Germany, experienced the largest ADR increase, rising 23.3 percent to EUR127.69.

• Two markets reported ADR decreases of more than 25 percent: Moscow, Russia (-36.6 percent to EUR156.35), and Prague, Czech Republic (-28.2 percent to EUR79.15).

• Cologne (+26.4 percent to EUR89.15) and Tel Aviv (+20.4 percent to EUR118.42) reported the largest RevPAR increases among the markets.

• Four markets posted RevPAR decreases of more than 25 percent: Moscow (-38.3 percent to EUR106.29); Budapest (-30.7 percent to EUR42.46); Prague (-30.3 percent to EUR51.32); and Athens (-29.8 percent to EUR86.51).

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

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Middle East/Africa October 2009 results

The Middle East/Africa region reported decreases in all three key measurements reported in U.S. dollars for October 2009.

The region's occupancy dropped 8.5 percent to 68.3 percent; average daily rate fell 1.9 percent to US$166.95; and revenue per available room decreased 10.2 percent to US$114.10.

"As October 2008 was a strong month for RevPAR growth (+24.6 percent) across Middle East/Africa region, the comparables for October 2009 (-10.2 percent) fell behind Europe (-1.6 percent) and Asia/Pacific (-3.1 percent)", said Elizabeth Randall, managing director of STR Global. "Out of the 11 cities tracked on our Middle East/Africa Performance Review, only Abu Dhabi, Dubai and Muscat reported monthly RevPAR declines higher than the regional average. The overall declining demand and in cases like Dubai, the increases in supply are reasons for these performances. Muscat had a very strong October in 2008 and therefore now sees the higher-than-average reduction".

Highlights from key markets in the Middle East/Africa region (percentages are October 2009 vs. October 2008):

• Riyadh, Saudi Arabia, reported the largest occupancy increase, up 7.9 percent to 70.4 percent, followed by Beirut, Lebanon with a 7.4-percent increase to 83.5 percent.

• Three markets reported double-digit occupancy decreases: Muscat, Oman (-17.3 percent to 66.1 percent); Johannesburg, South Africa (-12.0 percent to 65.7 percent); and Abu Dhabi, United Arab Emirates (-11.3 percent to 80.1 percent).

• Three markets experienced ADR increases of more than 30 percent: Istanbul, Turkey (+40.9 percent to US$306.85); Johannesburg (+34.7 percent to US$92.48); and Cape Town, South Africa (+31.3 percent to US$141.96).

• Dubai, UAE, posted the largest ADR decrease, falling 29.3 percent to US$264.73, followed by Muscat with a 12.8-percent decrease to US$269.79.

• Istanbul experienced the largest RevPAR increase, jumping 35.7 percent to US$230.69. Three other markets reported double-digit RevPAR increases: Cape Town (+19.5 percent to US$97.76); Johannesburg (+18.5 percent to US$60.80); and Beirut (+16.5 percent to US$154.31).

• Dubai reported the largest RevPAR decrease, dropping 35.3 percent to US$198.22, followed by Muscat with a 27.9-percent decrease to US$178.39.

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

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