STR Reports Global Hotel Performance Numbers for July 2009

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(News Source: STR Global)

The Americas

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

In year-over-year comparisons, occupancy for the region dropped 7.3 percent to 64.2 percent; average daily rate declined 9.5 percent to US$98.54; and revenue per available room decreased 16.1 percent to US$63.28.

Among the top markets in the region, San Juan, Puerto Rico, reported the largest occupancy increase, up 8.7 percent to 81.7 percent. Two other markets reported occupancy increases: Rio de Janeiro, Brazil (3.6 percent to 61.4 percent), and Manitoba/Saskatchewan, Canada (2.0 percent to 71.0 percent). Buenos Aires, Argentina, experienced the largest occupancy decrease, falling 48.1 percent to 32.9 percent, followed by Santiago, Chile, with a 31.4-percent decrease to 51.2 percent.

Manitoba/Saskatchewan posted the smallest ADR decrease for the month, down 2.8 percent to US$101.39. Five markets experienced ADR decreases of more than 15 percent: New York, New York (-27.3 percent to US$182.70); Mexico City, Mexico (-21.8 percent to US$99.94); San Francisco, California (-17.2 percent to US$128.78); Toronto, Canada (-16.6 percent to US$109.24); and Vancouver, Canada (-15.8 percent to US$133.15).

San Juan was virtually flat for the month in RevPAR, dropping 0.5 percent to US$122.92, followed by Manitoba/Saskatchewan (-0.9 percent to US$71.97). Buenos Aires experienced the largest RevPAR decrease, falling 55.5 percent to US$39.53. Three other markets posted RevPAR declines of more than 25 percent: Santiago (-35.4 percent to US$62.97), New York (-32.1 percent to US$147.30); and Mexico City (-27.1 percent to US$56.52).

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



*percentages are increases/decreases for July 2009 vs. July 2008

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Asia / Pacific Region

Hotels in the Asia/Pacific region experienced decreases when reported in U.S. dollars for all three key performance metrics for July 2009, according to data compiled by STR Global.

In year-over-year measurements, the Asia/Pacific region's occupancy dropped 6.3 percent to 61.7 percent; average daily rate declined 15.9 percent to US$113.20; and revenue per available room fell 21.2 percent to US$69.83.

"Asia showed slight signs of improvement in July, with many markets falling less than the previous month", said James Chappell, managing director of STR Global. "RevPAR growth in the region as a whole went from a 25.3-percent decrease in June to a 21.2-percent decrease in July, making the year-to-date numbers look slightly better as a result. The reason for this slight improvement was mostly due to occupancy, with levels for July down 6.3 percent, compared to a 10.8-percent decline the previous month.

"North eastern Asia, which includes China, Japan and Korea, improved from an occupancy decrease of 12.3 percent in June to 4.6-percent decrease in July, although any hopes that this will be part of a trend are liable to be wiped out in the next two months as the year-on-year effect of the Beijing Olympics is felt, which will have a huge impact on both rate and occupancy growth for not only Beijing itself, but also for other cities like Hong Kong that also hosted events", Chappell continued. "Another interesting market to mention is Japan, one of the three countries that have apparently 'come out' of recession, the other two being France and Germany", Chappell continued. "Japan as a whole improved from a 19-percent RevPAR decrease in June to a 16-percent decline in July, with Tokyo improving from a RevPAR decrease of 12.6 percent in June to a decrease of 4.3 percent in July, which might herald a return on investment of the large Japanese stimulus package".

Among the key markets, Beijing, China, reported the only occupancy increase, jumping 12.4 percent to 54.3 percent. Brisbane, Australia, was virtually flat in occupancy for the month, dropping 0.7 percent to 83.4 percent. Bangkok, Thailand, experienced the largest drop in occupancy, decreasing 25.6 percent to 52.7 percent. Jakarta, Indonesia (-15.7 percent to 62.5 percent) and Hong Kong, China (-15.3 percent to 69.5 percent) also reported occupancy decreases of more than 15 percent.

Tokyo, Japan, posted the largest ADR increase in U.S. dollars, jumping 14.5 percent to US$216.08. Two other markets reported ADR increases for the month: Bali, Indonesia (+10.6 percent to US$138.21) and Osaka, Japan (+3.5 percent to US$112.61). Three markets experienced ADR decreases of more than 30 percent: Mumbai, India (-35.4 percent to US$166.68); New Delhi, India (-33.2 percent to US$152.37); and Beijing (-30.5 to US$87.62).

Tokyo reported the largest RevPAR increase, up 8.5 percent to US$154.63, followed by Bali with a 4.9-percent increase to US$112.74. Four markets posted RevPAR decreases of 30 percent or more: Mumbai (-39.6 percent to US$92.03); New Delhi (-38.7 percent to US$92.92); Bangkok (-35.9 percent to US$46.07); and Sydney, Australia (-30.0 percent to US$98.80).

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



*percentages are increases/decreases for July 2009 vs. July 2008

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Europe

The European hotel industry posted mixed year-over-year results when reported in U.S. dollars, euros and British pounds for July 2009, according to data compiled by STR Global.

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.

"Although we have yet to see any clear signs of real improvement, there is some positive news in Europe, and the figures show that not all areas are still falling", said James Chappell, managing director of STR Global. "As we have seen all year, Europe's four main regions have split along distinct lines, with Northern Europe trending in a more positive direction and Eastern Europe falling the most. Looking at the July numbers, specifically the year-to-date figures, we are seeing that when markets are improving, it is driven by an improvement in the occupancy numbers, whereas those markets that are still deteriorating are almost exclusively being caused by a continued drop in the rate.

"The news from Northern Europe, which includes the U.K. and Scandinavia, is positive and trending in the right direction", Chappell continued. "After starting the year on a negative RevPAR percent change of -24 percent, this has improved to a 20-percent decrease by the end of July and has been caused by a stabilisation in the fall in average room rates combined with a rise in the occupancy numbers. On the other side of the spectrum, Eastern Europe continues to post bad news, with Eastern Europe's year-to-date RevPAR percent change exceeding a 36-percent decrease even though the occupancy percent-change numbers have been steadily improving since the beginning of the year".

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



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

• Glasgow, Scotland, was the only key market to report increases in all three key metrics. Occupancy was up 8.3 percent to 81.2 percent, ADR rose 3.2 percent to EUR76.52, and RevPAR increased 11.8 percent to EUR62.11.

• Venice, Italy, experienced the largest occupancy increase, jumping 10.3 percent to 69.8 percent.

• Four markets reported occupancy decreases of more than 10 percent: Budapest, Hungary (-17.1 percent to 56.3 percent); Madrid, Spain (-14.5 percent to 51.6 percent); Geneva, Switzerland (-14.2 percent to 65.3 percent); and Brussels, Belgium (-11.8 percent to 53.7 percent).

• Tel Aviv, Israel, posted the largest ADR increase, rising 16.5 percent to EUR171.83, followed by Geneva with a 13.5-percent increase to EUR266.63.

• Two markets reported ADR decreases of more than 20 percent: Moscow, Russia (-38.5 percent to EUR121.55) and Madrid (-21.0 percent to EUR81.84).

• Tel Aviv reported the largest RevPAR increase, up 12.8 percent to EUR131.52.

• Six markets reported RevPAR decreases of more than 20 percent: Moscow (-43.5 percent to EUR74.31); Madrid (-32.5 percent to EUR42.24); Prague, Czech Republic (-23.2 percent to EUR42.80); Manchester, England (-22.0 percent to EUR50.91); Barcelona, Spain (-21.5 percent to EUR76.47); and Birmingham, England (-20.3 percent to EUR38.22).

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



*percentages are increases/decreases for July 2009 vs. July 2008

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Middle East / Africa

The Middle East/Africa region suffered declines in all three key measurements in year-over-year results when reported in U.S. dollars for July 2009, according to data compiled by STR Global.

The region's occupancy dropped 11.0 percent to 62.0 percent; average daily rate decreased 3.0 percent to US$135.02; and revenue per available room decreased 13.6 percent to US$83.77.

"The Middle East/Africa region posted mixed performance in July in local currency, with the Middle East improving on June's data and Southern Africa showing significantly worse figures", said James Chappell, managing director of STR Global. "RevPAR growth in the Middle East finally showed some signs of improvement, with the United Arab Emirates and Dubai making significant gains. The UAE improved from a RevPAR fall of almost 28 percent in June to just over a 20-percent decrease in July, with Dubai rising from a RevPAR decrease of 33.9 percent to a 24-percent decrease, with both occupancy and average rates showing an increase month to month. Ramadan is earlier this year and that may have caused a flurry of travel in advance of the holiday. August and September are traditionally quiet months for the region. South Africa had two large football tournaments in June, which are being seen as a precursor to next year's World Cup, and the July figures pale in comparison, with RevPAR falling from a  5.8-percent decrease to a 4.1-percent decline in July as the occupancy and rate levels both declined".

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

• Beirut, Lebanon, reported the largest increases in all three key metrics. Occupancy was up 16.9 percent to 86.6 percent, ADR rose 48.9 percent to US$295.71, and RevPAR jumped 74.0 percent to US$256.15.

• Cape Town, South Africa, was the only other key market to post an occupancy increase, up 4.5 percent to 52.2 percent.

• Three markets experienced occupancy decreases of 20 percent or more: Muscat, Oman (-29.1 percent to 34.7 percent); Riyadh, Saudi Arabia (-28.4 percent to 51.7 percent); and Johannesburg/Pretoria, South Africa (-20.0 percent to 62.0 percent).

• Other than Beirut, three other key markets reported double-digit ADR increases: Cape Town (+14.8 percent to US$115.87); Jeddah, Saudi Arabia (+12.6 percent to US$187.28); and Amman, Jordan (+12.5 percent to US$150.31).

• Istanbul, Turkey (-23.5 percent to US$198.59) reported the largest ADR decrease, followed by Dubai, United Arab Emirates, with a 16.4-percent decrease to US$164.48.

• Cape Town posted a double-digit RevPAR increase of 19.9 percent to US$60.45.

• Five markets experienced RevPAR decreases of more than 20 percent: Istanbul (-33.2 percent to US$130.27); Muscat (-31.9 percent to US$62.17); Riyadh (-24.6 percent to US$119.01); Dubai (-24.1 percent to US$107.09); and Johannesburg/Pretoria (-21.1 percent to US$66.27).  

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


*percentages are increases/decreases for July 2009 vs. July 2008

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