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Global Hotel Markets Post Mixed Performance Results in August

Global Hotel Markets Post Mixed Performance Results in August


European-hotel-wpcki.jpg According to hotel data compiled by STR Global, despite economic slowdowns in many regions of the world, hotel markets globally still posted mostly positive performance results for the month of August 2012.

Here is a breakdown of hotel markets by region from STR Global.



Asia/Pacific Markets

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

In year-over-year measurements, the Asia/Pacific region's occupancy ended the month virtually flat with a 0.1-percent decrease to 68.1 percent, its average daily rate rose 0.7-percent to US$139.49 and its revenue per available room was up 0.7 percent to US$95.01.

"Average room rate growth across the Asia/Pacific region slowed down in recent months with a 2-percent increase for the first eight months this year (YTD) after stronger growth performances last year", said Elizabeth Randall Winkle, managing director at STR Global. "Average rates for YTD are within US$ 4 just below their YTD 2008 performance, reflecting the strong market conditions across most of Asia/Pacific".

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


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

str-global-Performances-of-key-countries-in-August-2012-chart1.jpg

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




Middle East/Africa

The Middle East/Africa region reported positive performance results in August 2012 when reported in U.S. dollars.

The region's occupancy increased 11.9 percent to 53.8 percent during the month, its average daily rate increased 3.0 percent to US$154.93 and its revenue per available room grew by 15.3 percent to US$83.37.

"Ramadan ended earlier this August compared to August 2011, and performance metrics were positively impacted because of it, showing a 19.6 percent RevPAR increase across the Middle East", said Elizabeth Randall Winkle, managing director of STR Global. "Africa's RevPAR grew 5.4 percent as occupancy continued to recover, but average room rates (in U.S. dollars) remained under pressure".

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


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

str-global-Performances-of-key-countries-in-August-2012-chart-2.jpg



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 2012.

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

str-global-Performances-of-key-countries-in-August-2012-chart-3.jpg

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Elizabeth Randall Winkle

"European hotels reported a bounce in average room rates this August as the Olympics took full effect in London and the U.K., and German cities hosted major trade fairs", said Elizabeth Randall Winkle, managing director of STR Global. "Because the majority of the games took place during August, the event boosted average room rates in London, with the city reporting a 43.7 percent ADR increase in local currency. Further, average room rates in August 2011 were depressed with a 1-percent decline, leading to the bounce back. Occupancy managed to increase 0.5 percent compared to last year, halting a period of three months with declines.  However, it remains a factor to watch in the coming months, especially in conjunction with the economic developments in Europe".

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


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

str-global-Performances-of-key-countries-in-August-2012-chart-4.jpg



The Americas

The Americas region recorded positive results in the three key performance metrics when reported in U.S. dollars for August 2012.

The Americas region reported a 2.8-percent increase in occupancy to 67.9 percent, a 3.8-percent gain in average daily rate to US$109.05 and a 6.7-percent increase in revenue per available room to US$74.08.

Among the region's key markets, San Juan, Puerto Rico, rose 6.6 percent in occupancy to 79.2 percent, reporting the largest increase in that metric, followed by Los Angeles, California, with a 5.6-percent increase to 83.0 percent. Panama City, Panama, fell 15.1 percent in occupancy to 45.9 percent, posting the largest decrease in that metric.

San Francisco, California, experienced the only double-digit ADR increase, rising 12.8 percent to US$180.19. Sao Paulo, Brazil, reported the largest ADR decrease, falling 11.1 percent to US$133.08.

Two markets achieved RevPAR increases of more than 10 percent: San Francisco (+12.6 percent to US$162.96) and Los Angeles (+12.4 percent to US$112.85). Panama City (-22.3 percent to US$52.84) and Sao Paulo (-15.7 percent to US$93.65) ended the month with the largest RevPAR decreases.

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

str-global-Performances-of-key-countries-in-August-2012-chart-5.jpg

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