Hotels in the Americas Post Positive Gains in July as Middle East Hotels Dip, Says STR Global Report

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The Americas Hotel Markets

According to data compiled by STR and STR Global, the Americas region recorded positive results in the three key performance metrics when reported in U.S. dollars for July 2012.

The Americas region reported a 0.5-percent increase in occupancy to 70.0 percent, a 3.3-percent gain in average daily rate to US$109.61 and a 3.8-percent increase in revenue per available room to US$76.74.

Among the region's key markets, Mexico City, Mexico, rose 6.3 percent in occupancy to 63.9 percent, reporting the largest increase in that metric. Rio de Janeiro, Brazil, followed with a 3.1-percent increase in occupancy to 75.2 percent. Buenos Aires, Argentina, fell 20.5 percent in occupancy to 55.9 percent, posting the largest decrease in that metric, followed by Montreal, Canada (-12.7 percent to 68.2 percent), and Panama City, Panama (-10.4 percent to 49.2 percent).

San Francisco, California, experienced the largest ADR increase, rising 11.9 percent to US$176.52, followed by Boston, Massachusetts, with a 10.8-percent increase to US$160.75. Buenos Aires (-12.6 percent to US$129.28) and Sao Paulo, Brazil (-11.7 percent to US$126.41) posted the largest ADR decreases for the month.

San Francisco (+11.5 percent to US$154.50) and Boston (+11.2 percent to US$133.23) achieved the highest RevPAR increases for the month. Three markets experienced RevPAR decreases of more than 15 percent: Buenos Aires (-30.5 percent to US$72.32); Montreal (-20.3 percent to US$88.12); and Panama City (-16.7 percent to US$58.35).

Performances of key countries in July 2012 (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 July 2012.

Year-over-year, July 2012 figures for Europe (U.S. dollars, euros and British pounds):



"European hotels reported a solid increase in average room rates for the month of July when measured in euro terms (+7.0 percent). However, this is coupled with the third consecutive month of small occupancy declines", said Elizabeth Randall Winkle, managing director of STR Global. "With the Olympic coverage taking over a bit from the ongoing troubles in the eurozone, London (U.K.) hoteliers reported weaker occupancy performances in June and the non-Olympic days in July compared to last year. We receive monthly results from more than 422 hotels in London and results for July reflect that the first four days of the Olympics during July could not offset the weaker occupancy in the early part of the month. London reported 80.7 percent occupancy (a decline of 11.1 percentage points) and £166.34 average room rate (+8.8 percent) compared to July 2011. This occupancy result for July 2012 still puts London into the top eight out of 31 European capital or gateway cities, which we track on our European Hotel Review. Given the most of the Olympic events occurred in August, a bigger impact, especially in ADR terms, should be visible in London's August results".

Highlights from key market performers for July 2012 include (year-over-year comparisons, all currency in euros):

• Bratislava, Slovakia, reported the largest occupancy increase, rising 19.5 percent to 51.2 percent, followed by Vilnius, Lithuania, with a 10.6-percent increase to 78.7 percent.
• Two markets experienced double-digit occupancy decreases: London (-12.1 percent to 80.7 percent) and Istanbul, Turkey (-10.6 percent to 72.7 percent).
• Five markets achieved ADR increases of 15 percent or more: Reykjavik, Iceland (+26.1 percent to EUR129.63); Tel Aviv, Israel (+22.4 percent to EUR205.15); London (+22.1 percent to EUR212.91); Manchester, U.K. (+18.5 percent to EUR80.76); and Istanbul (+15.0 percent to EUR176.84).
• Geneva, Switzerland (-15.1 percent to EUR242.25), and Zurich, Switzerland (-11.5 percent to EUR183.69), ended the month with the largest ADR decreases.
• Reykjavik grew 32.2 percent in RevPAR to EUR119.54, achieving the largest increase in that metric.
• Geneva fell 21.5 percent in RevPAR to EUR160.65, reporting the only RevPAR decrease of more than 20 percent.

Performances of key countries in July 2012 (all monetary units in local currency):

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Middle East/Africa

The Middle East/Africa region reported mostly negative performance results in July 2012 when reported in U.S. dollars.

The region's occupancy decreased 4.9 percent to 56.7 percent during the month, its average daily rate increased 2.1 percent to US$140.67 and its revenue per available room fell 3.0 percent to US$79.72.

"Ramadan, which took place 20 July to 19 August, impacted the results across the Middle East", said Elizabeth Randall Winkle, managing director of STR Global. "Ramadan took place during August last year. The holy cities of Makkah and Medina reported RevPAR increases of 90.9 percent and 33.0 percent, respectively".

"When measured in local currency, Beirut (Lebanon) reported sharp RevPAR declines (-39.2 percent) for July 2012 compared to last year as the Syrian crisis has deterred travellers to neighbouring Lebanon", Winkle continued. "July is the first month that average room rates and occupancy declined by around 20 percent".

Highlights among the region's key markets for July 2012 include (year-over-year comparisons, all currency in U.S. dollars):

• Sandton, South Africa, and the surrounding areas, reported the largest occupancy increase, rising 10.3 percent to 61.1 percent.
• Jeddah, Saudi Arabia (+7.9 percent to US$228.98), and Amman, Jordan (+7.0 percent to US$156.58) achieved the largest ADR increases for the month.
• Jeddah was the only key market to report a RevPAR increase, rising 12.7 percent to US$191.53.
• Beirut ended the month with the largest decreases in all three key performance metrics. Its occupancy fell 19.3 percent to 53.9 percent, its ADR was down 25.2 percent to US$195.78 and its RevPAR decreased 39.6 percent to US$105.48.

Performances of key countries in July 2012 (all monetary units in local currency):

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Asia/Pacific

Hotels in the Asia/Pacific region experienced mixed results in the three key performance metrics for July 2012 when reported in U.S. dollars.

In year-over-year measurements, the Asia/Pacific region's occupancy decreased 2.2 percent to 68.3 percent, its average daily rate ended the month virtually flat with a 0.2-percent increase to US$136.06 and its revenue per available room was down 2.1 percent to US$92.86.

"Thailand and French Polynesia were the two out of 15 countries tracked on our Asia/Pacific Hotel Review that reported double-digit RevPAR increases for July 2012 compared to July last year", said Elizabeth Randall Winkle, managing director at STR Global. "Thailand had its best July occupancy performance since 2006, with 67.8 percent for July 2012, just beating its July 2006 performance of 67.1 percent. Its ADR (THB3,062) for the month is still below its July 2008 peak of THB3,315. We have seen demand for hotel accommodation across the country increasing for the seven months this year (+10.3 percent) resulting as well from the increase in international visitors, especially from China, as reported by the Tourism Authority of Thailand".

"French Polynesia also reported its best July occupancy since July 2006 achieving 70.4 percent for July 2012, beating the last peak of July 2007 (68.1 percent). After the heavy occupancy declines seen in 2009 due to the global economic downturn, the islands had been reporting monthly occupancy and demand increases for the majority of months since 2010. A reduction in room inventory in the same period has helped to boost performances. Looking at the average room rate, July 2012 was its best performance of a July in the last six years".

Highlights from key market performers in July 2012 in local currency (year-over-year comparisons):

• Hanoi, Vietnam, rose 23.7 percent in occupancy to 64.8 percent, posting the largest increase in that metric.
• Jakarta, Indonesia (-10.3 percent to 73.1 percent), and Kuala Lumpur, Malaysia (-10.0 percent to 78.4 percent), reported the largest occupancy decreases for the month.
• Jakarta achieved the largest ADR increase, rising 21.6 percent to IDR954,878.37,, followed by Taipei, Taiwan (+18.6 percent to TWD5,554.87), and Phuket, Thailand (+16.9 percent to THB3,155.18).
• Three markets experienced RevPAR increases of more than 15 percent: Phuket (+26.2 percent to THB2,309.32); Hanoi (+25.0 percent to VND1,432,239.53); and Tokyo, Japan (+19.9 percent to JPY11,375.45).
• Delhi, India, fell 14.4 percent in RevPAR to INR3,383.47, reporting the largest decrease in that metric.

Performances of key countries in July 2012 (all monetary units in local currency):



Highlights from key market performers for July 2012 in U.S. dollars (year-over-year comparisons):

• Taipei rose 14.0 percent in ADR to US$184.71, reporting the largest increase in that metric. Beijing, China, followed with a 13.1-percent increase to US$107.26.
• Two markets experienced ADR decreases of more than 20 percent: Delhi (-27.3 percent to US$111.72) and Mumbai (-22.1 percent to US$132.94).
• Three markets achieved RevPAR increases of more than 15 percent: Hanoi (+22.3 percent to US$67.92); Phuket (+20.9 percent to US$73.08); and Tokyo (+17.6 percent to US$145.27).
• Delhi (-30.7 percent to US$61.08) and Mumbai (-19.6 percent to US$74.15) posted the largest RevPAR decreases for the month.