STR Reports Worldwide Hotel Performance Results For May 2009

---

(News Source: STR Global)

The Americas

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

In year-over-year comparisons, occupancy for the region in May dropped 12.2 percent to 55.7 percent; average daily rate dropped 10.3 percent to US$98.47; and revenue per available room dropped 21.2 percent to US$54.83.

Among the key markets, Rio de Janeiro, Brazil, was the only market to report an occupancy increase, rising 1.2 percent to 59.4 percent. Mexico City, Mexico, reported the largest decrease in occupancy as it fell 60.2 percent to 23.8 percent, followed by Buenos Aires, Argentina (-28.4 percent to 50.4 percent) and Santiago, Chile (-21.2 percent to 54.7 percent).

Santiago reported the smallest ADR decrease, down 4.6 percent to US$130.82, followed by Manitoba/Saskatchewan, Canada (-4.8 percent to US$102.79) and Nassau, Bahamas (-4.8 percent to US$268.72).

Four markets reported ADR decreases of more than 20 percent: New York, New York (-29.4 percent to US$201.13); Mexico City (-25.2 percent to US$96.52); Toronto, Canada (-24.9 percent to US$118.68); and Buenos Aires (-24.2 percent to US$133.55).

Rio de Janeiro reported the only single-digit RevPAR decrease, falling 6.4 percent to US$91.47. Four markets reported RevPAR decreases of more than 30 percent: Mexico City (-70.2 percent to US$22.95); Buenos Aires (-45.7 percent to US$67.28); Toronto (-36.4 percent to US$75.31); and New York (-35.7 percent to US$159.82).

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

---

European Markets

The European hotel industry posted mixed year-over-year results when reported in U.S. dollars, euros and British pounds for May 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 single-digit gains, depending on the market and the currency used for comparison.

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




"Europe's troubles can be found in the fall of average room rates", said James Chappell, managing director of STR Global. "In U.S. dollar and euro terms, the region reports the highest drops in ADR for the month and year-to-date May compared to Asia/Pacific, the Americas and Middle East/Africa.

"For May, of the 40 markets tracked on our European Hotel Review, only four increased their average rates in local currency terms: Frankfurt, Tel Aviv and the northern European markets of Helsinki and Malmo", Chappell continued. "The trade fairs helped Frankfurt to achieve the highest ADR increase of 22 percent for the 40 markets tracked".

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

• Frankfurt, Germany, reported the largest occupancy increase, rising 7.6 percent to 59.9 percent.

• Budapest, Hungary, experienced the largest occupancy decrease, falling 21.5 percent to 60.4 percent, followed by Geneva, Switzerland (-21.2 percent to 58.8 percent) and Tel Aviv, Israel (-21.0 percent to 71.0 percent).

• Frankfurt posted a 22.4-percent jump in ADR to EUR114.47, the largest increase of that metric.

• Three markets posted ADR decreases of more than 25 percent: Moscow, Russia (-41.9 percent to EUR165.49); Düsseldorf, Germany (-32.9 percent to 79.34); and Cardiff, United Kingdom (-25.5 percent to EUR64.90).

• Frankfurt reported the only RevPAR increase, up 31.7 percent to EUR68.55.

• Seven markets experienced RevPAR decreases of 30 percent or more: Moscow (-49.7 percent to EUR101.15); Düsseldorf (-41.5 percent to EUR41.52); Madrid, Spain (-36.4 percent to EUR61.15); Budapest (-34.4 percent to EUR45.48); Prague, Czech Republic (-33.2 percent to EUR59.00); Stockholm, Sweden (-32.8 percent to EUR77.41); and Dublin, Ireland (-30.0 to EUR59.17).

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

---

Asia/Pacific Markets

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

In year-over-year measurements, Asia/Pacific region's occupancy in May dropped 14.9 percent to 55.4 percent; average daily rate declined 15.2 percent to US$117.86; and revenue per available room fell 27.9 percent to US$65.26.

"Occupancy levels dropped the most within the Asia/Pacific region for the month of May and in the year-to-date numbers of any region", said James Chappell, managing director of STR Global. "While Europe, Americas and Middle East/Africa regions are experiencing a slowdown in the rate of decline, the same cannot be said in Asia. Some of the lowest levels of occupancy--under 50 percent--were reported in Bangkok, Beijing, Phuket and Shanghai, as the markets suffered from post Olympic boom and oversupply. Other areas, like Thailand, are suffering because of the uncertain economic climate.

"It's not all bad news though", Chappell continued. "Brisbane, Melbourne, Seoul and Sydney reported the highest levels of occupancy--over 70 percent--for May from the 17 markets tracked by our Asia/Pacific Hotel Review."

Among the key markets, Brisbane, Australia, reported the smallest occupancy decrease, falling 2.1 percent to 77.3 percent. Bangkok, Thailand, fell in occupancy 37.3 percent to 41.8 percent, reporting the largest decrease in that metric. Phuket, Thailand, followed with a 32.1-percent decrease in occupancy to 34.5 percent.

Three markets reported ADR increases: Bali, Indonesia (+18.5 percent to US$127.83); Tokyo, Japan (+12.9 percent to US$228.55); and Osaka, Japan (+8.7 percent to US$129.72). Mumbai, India, reported the largest ADR decrease, dropping 35.6 percent to US$164.66. New Delhi, India, followed with a 31.0-percent decrease in ADR to US$162.02.

Bail was the only market to increase in RevPAR for the month, rising 10.8 percent to US$88.79. Five markets reported RevPAR decreases of more than 40 percent: Bangkok (-48.4 percent to US$36.36); Phuket (-47.6 percent to US$25.80); New Delhi (-44.8 percent to US$81.48); Beijing, China (-43.8 percent to US$45.54); and Mumbai (-40.3 percent to US$92.37).

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

---

Middle East/Africa Markets

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

The region's occupancy dropped 11.5 percent to 63.1 percent; average daily rate decreased 6.1 percent to US$145.67; and revenue per available room decreased 17.0 percent to US$91.99.

"Although they have seen some spectacular year-over-year decreases, the Middle East/Africa region is still very strong compared with the other global regions", said James Chappell, managing director of STR Global. "The region has the lowest RevPAR decline and the highest actual RevPAR for the month of May and the year-to-date May, compared with Asia/Pacific, Americas and Europe. The market has fallen 17 percent, posting US$92 RevPAR for the month and US$100 RevPAR year-to-date, as hotels kept their average room rates higher in the face of a strong drop in demand.

"Of the 26 markets and countries on our Middle East/Africa Hotel Review, political stability in Kenya and Lebanon has seen the hotel market come back strongly with 82 percent and 144 percent RevPAR increases year-to-date," Chappell continued. "Jeddah, Abu Dhabi and Amman also bucked the trend and reported RevPAR increases for the month and year-to-date".

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

• Beirut, Lebanon, reported the largest increase in both occupancy (+148.4 percent to 71.4 percent) and RevPAR (+194.6 percent to US$118.89).

• Excluding Beirut, Jeddah, Saudi Arabia, was the only market to experience an increase in occupancy, which rose 5.5 percent to 71.4 percent.

• Muscat, Oman, was down in occupancy 23.7 percent to 52.1 percent, reporting the largest decrease in that metric.

• Amman, Jordan, experienced the largest increase in ADR, rising 21.6 percent to US$162.22. Beirut was the only other market to experience a double-digit increase in ADR, up 18.6 percent to US$166.40.

• Two markets reported ADR decreases of more than 25 percent: Dubai, United Arab Emirates (-30.3 percent to US$211.41) and Istanbul, Turkey (-26.4 percent to US$211.06).

• Three markets reported RevPAR decreases of more than 25 percent: Dubai (-40.4 percent to US$140.65); Istanbul (-36.3 percent to US$148.87); and Muscat (-28.6 percent to US$116.22).

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

---