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Global Hotel Performance Shows Mixed Results for January 2010

Vacation News » Vacation & Leisure Real Estate Edition | By Michael Gerrity | February 24, 2010 3:57 PM ET



The Americas

(LONDON and HENDERSONVILLE, TN) -- According to data compiled by STR and STR Global, the Americas region recorded declines in all three key performance metrics when reported in U.S. dollars for January 2010. 

In January 2010, the region's occupancy ended the month virtually flat with a 0.7-percent decrease to 45.5 percent, average daily rate fell 6.0 percent to US$96.68, and revenue per available room dropped 6.7 percent to US$43.98.

Among the markets in the region, Boston, Massachusetts, reported the largest occupancy increase, jumping 18.3 percent to 48.9 percent. Two other markets reported double-digit occupancy increases: Miami, Florida (+10.6 percent to 74.6 percent), and Rio de Janeiro, Brazil (+10.4 percent to 76.4 percent). Alberta, Canada, posted the largest occupancy decrease, falling 9.9 percent to 46.9 percent.

Vancouver, British Columbia, experienced the largest ADR increase, jumping 24.9 percent to US$123.62, followed by Sao Paulo, Brazil, with a 22.8-percent increase to US$92.14. Three markets reported double-digit ADR decreases: Washington, D.C. (-27.2 percent to US$132.65); Chicago, Illinois (-14.5 percent to US$85.99); and San Juan, Puerto Rico (-10.8 percent to US$190.01).

Three markets ended the month with RevPAR increases of more than 25 percent: Vancouver (+31.6 percent to US$64.53); Sao Paulo (+28.3 percent to US$48.04); and Rio de Janeiro (+26.2 percent to US$115.79). Washington, D.C., reported the largest RevPAR decrease, falling 32.3 percent to US$64.19, followed by Chicago with a 16.6-percent decline to US$33.82.

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

str-global-02242010-chart-1.jpg




Asia/Pacific Regions

Hotels in the Asia/Pacific region experienced increases in all three key performance metrics for January 2010 when reported in U.S. dollars, according to data compiled by STR Global.

In year-over-year measurements, the Asia/Pacific region's occupancy rose 13.9 percent to 61.0 percent, average daily rate increased 5.6 percent to US$130.75, and revenue per available room jumped 20.3 percent to US$79.81.

"Hotels in the Asia/Pacific region lead the world in terms of occupancy recovery with double-digit growth in three out of the four sub regions and Australia & Oceania improving 3.2 percent", said Elizabeth Randall, managing director of STR Global. "The region achieved the highest occupancy of 61 percent, some 6.2 percentage points more than the Middle East/Africa region, 12.8 percentage points more than Europe and 15.5 percentage points more than the Americas.  Of the 16 countries we report on our Asia/Pacific Hotel Review, only French Polynesia, Japan, the Maldives and South Korea reported occupancy declines compared with January 2009".

Highlights from key market performers for January 2010: (year-over-year comparisons, all currency results in U.S. dollar)

  • Beijing, China, reported the largest occupancy increase among the markets, rising 41.9 percent to 51.0 percent, followed by Shanghai, China (+41.4 percent to 49.1 percent), and Phuket, Thailand (+32.7 percent to 86.0 percent).

  • Bali, Indonesia, posted the largest occupancy decrease, falling 7.6 percent to 68.7 percent, followed by Seoul, South Korea, with a 7.1-percent decrease to 69.5 percent.

  • Three markets experienced ADR increases of more than 30 percent: Brisbane, Australia (+35.9 percent to US$127.91); Melbourne, Australia (+33.3 percent to US$166.61); and Sydney, Australia (+31.8 percent to US$150.48).

  • Mumbai, India, ended the month with the largest ADR decrease, falling 8.0 percent to US$192.79.

  • Beijing experienced the largest RevPAR increase, jumping 48.4 percent to US$46.54. Sydney (+41.6 percent to US$116.76) and Shanghai (+41.1 percent to US$51.78) also reported large RevPAR increases.

  • Two markets posted RevPAR decreases: Osaka, Japan (-7.4 percent to US$79.96), and Bali (-4.2 percent to US$86.32).

Performances of key countries in January 2010 (all monetary units in local currency):

str-global-02242010-chart-2.jpg




Europe

The European hotel industry posted mixed results in year-over-year results when reported in U.S. dollars, euros and British pounds for January 2010, according to data compiled by STR Global.

Figures for occupancy, average daily rate and revenue per available room ranged from double-digit losses to double-digit gains, depending on the market and the currency used for comparison.

Year-over-year January 2010 figures for Europe (U.S. dollars, euros and British pounds):

str-global-02242010-chart-3.jpg

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Elizabeth Randall

"Europe, like the Asia/Pacific region, is one of only two world regions that reported growth in occupancy for all their respective sub regions", said Elizabeth Randall, managing director of STR Global. "Whilst European occupancy stands at 48.2 percent--some 12.8 percentage points behind Asia Pacific--it reflects a continuing stabilization of market conditions, may it be on low levels".

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

  • Tel Aviv, Israel, experienced the largest occupancy increase, rising 47.9 percent to 62.2 percent. Four other markets reported occupancy increases of more than 10 percent: Frankfurt, Germany (+14.6 percent to 58.4 percent); Moscow, Russia (+11.6 percent to 43.3 percent); Athens, Greece (+10.6 percent to 42.3 percent); and Milan, Italy (+10.4 percent to 51.9 percent).

  • Gothenburg, Sweden, posted the largest occupancy decrease, falling 11.1 percent to 42.4 percent, followed by Hamburg, Germany, with a 10.4-percent decrease to 48.7 percent.

  • Berlin, Germany, reported the largest ADR increase for the month, up 8.1 percent to EUR82.11, followed by London, England, with a 7.2-percent increase to EUR125.60.

  • Rome, Italy (-13.6 percent to EUR113.50), and Dublin, Ireland (-13.5 percent to EUR75.40), reported the largest ADR decreases among the key markets.

  • Tel Aviv experienced the largest RevPAR increase, jumping 51.8 percent to EUR88.92, followed by Frankfurt (+17.6 percent to EUR72.36) and Berlin (+14.0 percent to EUR41.74).

  • Two markets posted RevPAR decreases of more than 15 percent: Barcelona, Spain (-16.2 percent to EUR38.74), and Munich, Germany (-15.1 percent to EUR50.32).

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

str-global-02242010-chart-4.jpg 



Middle East/Africa Markets

The Middle East/Africa region reported decreases in all three key measurements for January 2010, when reported in U.S. dollars, according to data compiled by STR Global.

The region's occupancy in January fell 2.3 percent to 54.8 percent, average daily rate decreased 1.9 percent to US$170.20, and revenue per available room decreased 4.1 percent to US$93.23.

"The African sub regions are the ones boosting the overall results for the Middle East/Africa region, which is partly due to exchange rates," said Elizabeth Randall, managing director of STR Global. "But the Middle East still achieved the second highest RevPAR of all the world sub regions at US$120, surpassed only by the Caribbean with US$128.

"Overall, the Middle East/Africa region continues to be one of two regions that still reports declines in RevPAR", Randall continued. "It is good to see the decline is getting smaller, from -7 percent in December to -4 percent for January compared to the prior year. Therefore, we still expect the region to follow on the recovery path that we set up last month".

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

  • Amman, Jordan, reported the largest occupancy increase, rising 7.1 percent to 44.1 percent, followed by Beirut, Lebanon (+6.1 percent to 57.6 percent), and Dubai, United Arab Emirates (+6.1 percent to 72.1 percent).

  • Three markets posted double-digit occupancy decreases: Abu Dhabi, UAE (-27.1 percent to 56.5 percent); Muscat, Oman (-21.6 percent to 53.1 percent); and Johannesburg, South Africa (-10.1 percent to 47.9 percent).

  • Three markets experienced ADR increases of 25 percent or more: Cape Town, South Africa (+49.0 percent to US$166.30); Johannesburg (+34.6 percent to US$92.62); and Beirut (+25.7 percent to US$206.00).

  • Muscat led the ADR decreases, falling 25.0 percent to US$256.73, followed by Abu Dhabi with a 18.3-percent decrease to US$286.80.

  • Cape Town ended the month with the largest RevPAR increase, jumping 46.0 percent to US$98.58, followed by Beirut with a 33.4-percent increase to US$118.76.

  • Muscat (-41.2 percent to US$136.27) and Abu Dhabi (-40.5 percent to US$162.02) reported the largest RevPAR decreases.

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

str-global-02242010-chart-5.jpg




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