Global Hotel Performance in June Up in Most Markets, Says STR Report

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The Americas

According to STR and STR Global, the Americas region recorded positive results in the three key performance metrics when reported in U.S. dollars for June 2011.

The Americas region ended June with a 4.0-percent increase in occupancy to 67.4 percent, average daily rate was up 3.8 percent to US$104.44, and revenue per available room rose 8.0 percent for the month to US$70.42.

Among the region's key markets, Santiago, Chile, reported the largest occupancy increase, rising 27.7 percent to 70.3 percent, followed by Rio de Janeiro, Brazil (+18.0 percent to 68.6 percent); Miami, Florida (+11.0 percent to 70.9 percent); and Mexico City, Mexico (+10.5 percent to 65.4 percent). Buenos Aires, Argentina, reported the largest occupancy decrease, falling 7.4 percent to 60.0 percent.

Sao Paulo, Brazil (+34.6 percent to US$145.89), and Rio de Janeiro (+18.7 percent to US$193.71), achieved the largest ADR increases for the month.

Four markets posted RevPAR increases of more than 20 percent: Sao Paulo (+46.9 percent to US$104.22); Santiago (+40.8 percent to US$104.08); Rio de Janeiro (+40.1 percent to US$132.96); and San Francisco, California (+20.5 percent to US$127.31).

Toronto, Canada, experienced the largest decreases in ADR and RevPAR. The market's ADR dropped 4.9 percent to US$144.36, and RevPAR decreased 9.5 percent to US$109.44.

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

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Europe

The European hotel industry posted positive results in year-over-year metrics when reported in U.S. dollars, euros and British pounds for June 2011.

Year-over-year, June 2011 figures for Europe (U.S. dollars, euros and British pounds):



"Europe continued with its solid performance for the first six months of this year", said Elizabeth Randall, managing director at STR Global. "Across the region we saw equal increases in occupancy and ADR, resulting in a 9-percent RevPAR increase. Despite the reoccurring uncertainties in the wider economic environment, European hoteliers benefitted from the continued improvement in business, MICE and leisure demand".

Highlights from key market performers for June 2011 include (year-over-year comparisons, all currency in euros):

• Venice, Italy (+20.5 percent to 81.1 percent), and Lisbon, Portugal (+20.0 percent to 77.7 percent), reported the largest occupancy increases.

• Malmo, Sweden, reported the largest occupancy decrease, falling 10.1 percent to 58.6 percent.

• Five markets experienced ADR increases of more than 15 percent: Venice (+36.2 percent to EUR392.74); Paris, France (+22.9 percent to EUR288.39); Prague, Czech Republic (+18.3 percent to EUR90.15); Düsseldorf, Germany (+18.1 percent to EUR107.27); and Amsterdam, Netherlands (+16.0 percent to EUR152.27).

• Glasgow, Scotland, reported the largest ADR decrease, falling 16.0 percent to EUR69.59, followed by Oslo, Norway, with a 13.4-percent decrease to EUR113.84.

• Venice jumped 64.0 percent in RevPAR to EUR318.44, reporting the largest increase in that metric. Three other markets reported RevPAR increases of more than 30 percent: Prague (+39.8 percent to EUR70.76); Lisbon (+33.3 percent to EUR73.34); and Milan, Italy (+32.2 percent to EUR97.72).

• Oslo fell 21.9 percent in RevPAR to EUR80.22, reporting the largest decrease in that metric, followed by Glasgow with an 18.9-percent decrease to EUR56.07.

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

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Middle East/Africa

The Middle East/Africa region reported decreases in all three key performance metrics during June 2011 when reported in U.S. dollars.

The region ended the month with a 9.7-percent decrease in occupancy to 54.1 percent, average daily rate fell 4.3 percent to US$141.10, and revenue per available room ended the month with a 13.6-percent decrease to US$76.32.

"As South Africa hosted the FIFA World Cup in June and July 2010, the results for June this year consequently are showing declines against last year", said Elizabeth Randall, managing director of STR Global. "Southern Africa reports a 35-percent RevPAR decrease, followed by Northern Africa with a 26-percent RevPAR decrease for the month. The Middle East (excluding Egypt) continued to report occupancy improvements with stable ADR results highlighting the strengthening of recovery across the region".

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

• Two markets reported double-digit occupancy increases: Jeddah, Saudi Arabia (+12.8 percent to 78.2 percent), and Dubai, United Arab Emirates (+12.0 percent to 70.0 percent).

• Sandton, South Africa, and the surrounding areas, reported the largest decreases in all three key performance metrics. Occupancy fell 35.0 percent to 55.7 percent, ADR dropped 48.2 percent to US$140.85, and RevPAR decreased 66.3 percent to US$78.50.

• Jeddah reported the largest increases in ADR (+12.0 percent to US$214.83) and RevPAR (+26.4 percent to US$168.06).

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

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Asia/Pacific


Hotels in the Asia/Pacific region experienced mostly positive results in the three key performance metrics during June 2011 when reported in U.S. dollars.

In year-over-year measurements, the Asia/Pacific region's occupancy ended the month virtually flat with a 0.6-percent increase to 65.2 percent, average daily rate increased 13.3 percent to US$133.79, and revenue per available room jumped 13.9 percent to US$87.22.

"Asia/Pacific will be an interesting region to watch during the coming months", said Elizabeth Randall, managing director of STR Global. "Only two out of the six months so far this year reported occupancy increases against the corresponding month in 2010. Whilst the demand across the region continued to grow (2 percent for the first half of the year), the new supply entering the region (3 percent for the same timeframe) kept the occupancy levels under pressure. Added to that is the reduced demand due to the earthquake and tsunami in Japan and key events like the World Expo in Shanghai last year".

Highlights from key market performers for June 2011 in local currency (year-over-year comparisons):

• Bangkok, Thailand, jumped 78.0 percent in occupancy to 62.8 percent, reporting the largest increase in that metric. Phuket, Thailand, was the only other market to report a double-digit occupancy increase, rising 38.7 percent to 54.6 percent.

• Shanghai, China, reported the largest decrease in all three key performance metrics: Occupancy fell 27.6 percent to 58.5 percent, ADR was down 11.5 percent to CNY788.14, and RevPAR decreased 35.9 percent to CNY461.11.

• Three markets reported double-digit ADR increases: Hong Kong (+24.6 percent to HKD1,704.31); Bangkok (+11.1 percent to THB2,869.04); and Jakarta, Indonesia (+10.6 percent to IDR789,407.11).

• Bangkok rose 97.7 percent in RevPAR to THB1,800.34, reporting the largest increase in that metric.

Performances of key countries in June 2011 (all monetary units in local currency):



Highlights from key market performers for June 2011 in U.S. dollars (year-over-year comparisons):

• Five markets achieved ADR increases of more than 20 percent: Brisbane, Australia (+30.8 percent to US$193.94); Melbourne, Australia (+30.8 percent to US$183.76); Sydney, Australia (+27.5 percent to US$180.83); Hong Kong (+24.6 percent to US$218.96); and Seoul, South Korea (+23.7 percent to US$180.09).

• Bangkok jumped 108.3 percent in RevPAR to US$58.26, reporting the largest increase in that metric. Three other markets posted RevPAR increases of more than 30 percent: Phuket (+55.0 percent to US$49.61); Melbourne (+39.8 percent to US$134.05); and Brisbane (+35.2 percent to US$164.44).

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