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STR Global Releases Hotel Performance Results for Americas, Asia/Pacific, Europe & Middle East/Africa for March 2009

Vacation News » Vacation & Leisure Real Estate Edition | By Michael Gerrity | April 28, 2009 11:12 AM ET



(News Source: Smith Travel Research)


Americas Region

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

Occupancy for the region dropped 11.2 percent to 55.7 percent; average daily rate dropped 10.5 percent to US$100.94; and revenue per available room dropped 20.5 percent to US$56.18.

Among the key markets, three markets reported increases in occupancy: Mexico City, Mexico (+5.5 percent to 59.5 percent); Ottawa, Canada (+0.8 percent to 62.8 percent); and Rio de Janeiro, Brazil (+0.3 percent to 70.4 percent). Nassau, Bahamas, reported the largest occupancy decrease (-23.0 percent to 63.2 percent).

Washington, D.C., United States, reported the smallest ADR decrease (-1.3 percent to US$157.03). Two markets reported ADR decreases of more than 20 percent: New York, New York, was down 24.4 percent to US$193.19, and Toronto, Canada, was down 21.9 percent to US$107.12.

Two markets reported single-digit RevPAR decreases: Washington, D.C. (-7.4 percent to US$105.66) and Mexico City, Mexico (-5.0 percent to US$68.13). Seven markets reported RevPAR decreases of more than 25 percent: New York (-35.5 percent to US$135.99); Miami, Florida (-28.5 percent to US$126.80); Alberta, Canada (-26.6 percent to US$64.32); Nassau (-25.9 percent to US$226.60); Toronto, Canada (-25.3 percent to US$62.80); Buenos Aires, Argentina (-25.2 percent to US$96.64); and Chicago, Illinois (-25.1 percent to US$55.24).

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Asia / Pacific Region

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

The Asia/Pacific region's occupancy dropped 14.4 percent to 60.6 percent; average daily rate declined 19.5 percent to US$117.46; and revenue per available room fell 31.1 percent to US$71.14.

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James Chappell

"Hotel performance continues to tumble in Asia, with a combination of oversupply and the global economic slowdown wiping out many of the gains made over the previous couple of years," said James Chappell, managing director of STR Global.

"China and India, previously such exciting markets, have fallen in RevPAR 35 percent and 39 percent, respectively (when reported in local currency). Singapore is hard on their heels with a 28-percent fall in RevPAR year on year," Chappell continued. "Other southeast Asia countries that have been experiencing a boom recently are also feeling the pinch with Vietnam falling 27 percent and Thailand falling 36.5 percent in RevPAR.

It's not all bad news however, with Australia only dropping in RevPAR 5 percent, the Philippines growing 4.7 percent, Indonesia 6.7 percent and South Korea 14 percent. We expect India to stabilize somewhat in the coming months, but China, and especially Beijing, is in for a tough few months in the year after the Olympics."

Among the key markets, Seoul, South Korea, reported the only double-digit increase in occupancy, which jumped 12.5 percent to 84.0 percent. Melbourne, Australia, also reported an occupancy increase (+1.1 percent to 79.7 percent). Beijing, China, reported the largest occupancy decrease (-29.3 percent to 49.8 percent). Bangkok, Thailand, followed closely with a 29.0-percent decrease, down to 55.0 percent for the month.

Two markets increased in ADR: Bali, Indonesia, was up 5.3 percent in ADR to US$102.72, and Tokyo, Japan, was up 4.1 percent to US$216.68. New Delhi, India, and Mumbai, India, reported the largest ADR decreases, down 43.8 percent to US$185.03 and 40.2 percent to 174.91, respectively.

Two markets reported single-digit RevPAR decreases: Osaka, Japan (-6.5 percent to US$94.94) and Tokyo (-5.5 percent to US$157.13). Five markets reported RevPAR decreases of more than 40 percent: New Dehli (-55.2 percent to US$120.76); Phuket, Thailand (-48.7 percent to US$65.85); Mumbai (-48.1 percent to US$108.09); Beijing (-44.3 percent to US$49.60); and Bangkok (-42.7 percent to US$52.26).

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European Region

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

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"The annual Easter mismatch has had a positive effect on European performance but has only extended to a very limited number of markets," said James Chappell, managing director of STR Global. "Europe as a whole fell 14 percent in RevPAR, up from the 19 percent drop in February, with southern Europe again bearing the brunt of the hit and dropping by over 20 percent in RevPAR.

"Outside of southern Europe, other Markets fared far better, with the United Kingdom falling in RevPAR only 6 percent compared to February's decrease of 10 percent," Chappell continued. "Scandinavia was 21 percent positive in RevPAR, and Germany was up by 6.7 percent in RevPAR. There is huge concern over Spain and Italy, which fell in RevPAR by 26 percent and 15 percent, respectively, as the Easter effect will be reversed next month. I think we can look forward to some eye-watering numbers in April in those markets."

Key year-over-year market performers include (all currency figures are in euros):

  • Four key markets reported double-digit occupancy increases: Cologne, Austria (+17.5 percent to 65.7 percent); Frankfurt, Germany (+16.6 percent to 64.6 percent); Oslo, Norway (+14.3 percent to 63.0 percent); and Stockholm, Sweden (+11.9 percent to 65.2 percent).
  • Tel Aviv, Israel, reported the largest occupancy decrease, which was down 30.2 percent to 53.5 percent, followed by Salzburg, Austria (-24.4 percent to 43.0 percent) and Budapest, Hungary (-24.0 percent to 46.5 percent).
  • Tel Aviv (+19.8 percent to EUR150.99) and Cologne (+18.2 percent to EUR116.52) were the only two markets to report double-digit ADR increases.
  • Four markets reported ADR decreases of more than 20 percent: Salzburg (-32.9 percent to EUR78.15); Moscow, Russia (-29.9 percent to EUR179.17); Reading/M4 Corridor, Great Britain (-22.9 percent to EUR79.22); and Barcelona, Spain (-21.3 percent to EUR104.08).
  • Two markets reported double-digit increases in RevPAR: Cologne (+38.9 percent to EUR76.59) and Frankfurt (+26.3 percent to EUR77.85).
  • Four markets reported RevPAR decreases of more than 30 percent: Salzburg (-49.3 percent to EUR33.62); Barcelona (-33.5 percent to EUR55.78); Florence, Italy (-32.6 percent to EUR58.27); Moscow (-32.6 percent to EUR111.14).

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Middle East / Africa Region

The Middle East/Africa region reported mixed year-over-year results when reported in U.S. dollars for March 2009, according to data compiled by STR Global.

The region's occupancy dropped 11.0 percent to 66.3 percent; average daily rate decreased 5.6 percent to US$159.04; and revenue per available room decreased 16.0 percent to US$105.51.

"The pain continues for Egypt and Dubai, two of the biggest success stories in 2007 and 2008," said James Chappell, managing director of STR Global. "Both markets fell heavily in RevPAR in March: Although Egypt's year-to-date figures are slightly better at -12.5 percent, Dubai has lost over 30 percent in the first quarter of 2009.

"Abu Dhabi, Beirut and Jeddah are the three out of 11 cities reviewed by our Middle East Hotel Review, which grew their RevPAR in quarter one," Chappell continued. "Beirut continued to recover from its low performance due to the political unrest in recent years. Abu Dhabi's good Q1 performance was boosted by good results in the first two months of 2009, but, unfortunately, its March results were flat against last year."

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

  • Beirut, Lebanon, reported the highest increases in all three key performance measurements. Occupancy was up 126.3 percent to 72.9 percent, ADR rose 52.9 percent to US$162.54 and RevPAR increased 245.8 percent to US$118.53.
  • Jeddah, Saudi Arabia, also saw increased occupancy, which was up 15.3 percent to 70.0 percent.
  • Two markets reported occupancy decreases of more than 20 percent: Muscat, Oman (-24.1 percent to 62.5 percent) and Amman, Jordan (-22.2 percent to 61.5 percent).
  • In addition to Beirut, three other markets reported double-digit increases in ADR: Jeddah (+20.3 percent to US$170.05); Amman (+17.3 percent to US$151.74); and Riyadh, Saudi Arabia (+15.5 percent to US$287.96).
  • Cape Town, Africa (-17.1 percent to US$112.36), Istanbul, Turkey (-14.5 percent to US$169.65), and Dubai, United Arab Emirates (-29.8 percent to EUR260.78) were the only three markets to report double-digit ADR decreases.
  • Jeddah also reported a double-digit increase in RevPAR, which was up 38.7 percent to US$119.00.
  • Three markets reported RevPAR decreases of more than 25 percent: Dubai (-40.9 percent to US$195.78); Cape Town (-29.6 percent to US$77.83); and Istanbul (-29.2 percent to US$105.44).

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