Key Global Hotel Performance Metrics Are Mixed in September

Vacation News » Vacation & Leisure Real Estate Edition | By Michael Gerrity | October 28, 2009 9:00 AM ET

(News Source: STR Global)

The Americas

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

In year-over-year comparisons, occupancy for the region dropped 6.3 percent to 57.0 percent, average daily rate declined 10.1 percent to US$98.11, and revenue per available room decreased 15.7 percent to US$55.93.

Among the key markets San Juan, Puerto, Rico, jumped 28.9 percent in occupancy to 66.6 percent, reporting the largest increase. Sao Paulo, Brazil, experienced the largest occupancy decrease, falling 22.6 percent to 56.8 percent, followed by Buenos Aires, Argentina, with a 17.0-percent decrease to 55.8 percent.

Sao Paulo posted the largest ADR increase, up 12.0 percent to US$97.84, followed by Rio de Janeiro, Brazil (+11.3 percent to US$168.76). New York experienced the largest ADR decrease, down 23.2 percent to US$249.24. Mexico City, Mexico (-18.9 percent to US$102.88), and Chicago, Illinois (-18.4 percent to US$117.68), also reported large decreases.

Rio de Janeiro (+8.5 percent to US$108.26), and Sao Paulo (+4.6 percent to US$63.42), were the only key markets to experience RevPAR increases. Four markets reported RevPAR decreases of 25 percent or more: Buenos Aires (-29.5 percent to US$72.55); Santiago, Chile (-27.4 percent to US$71.67); Mexico City (-27.3 percent to US$55.62); and Chicago (-25.0 percent to US$72.55).

European Region

The European hotel industry posted decreases in year-over-year results when reported in U.S. dollars, euros and British pounds for September 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 double-digit gains, depending on the market and the currency used for comparison.

"The hotel performance for the next few months will see a recovery over the bad fourth quarter of 2008, when the worldwide economic downturn accelerated RevPAR declines", said Elizabeth Randall, managing director of STR Global. "September showed the lowest RevPAR drop since October 2008 as RevPAR declines have stabilised over recent months. Occupancy levels boosted RevPAR as average room rates continued their double-digit decline across Europe's sub-regions, the exception being Western Europe, which only saw an ADR decrease of 6.5 percent".

Highlights from key market performers for September include (year-over-year results, all currency figures are in euros):

  • Venice, Italy, reported the largest occupancy increase, up 5.5 percent to 73.2 percent, followed by London, England (+3.8 percent to 84.4 percent), and Salzburg, Austria (+2.8 percent to 73.7 percent).
  • Tel Aviv, Israel, experienced the largest occupancy decline, falling 20.3 percent to 62.0 percent, followed by Antwerp, Belgium (-12.9 percent to 65.4 percent), Budapest, Hungary (-12.6 percent to 67.9 percent), and Prague, Czech Republic (-12.5 percent to 66.6 percent).
  • Two markets posted ADR increases: Vienna, Austria (+6.2 percent to EUR125.07), and Geneva, Switzerland (+1.7 percent to EUR208.86).
  • Four markets experienced ADR declines of more than 25 percent: Moscow, Russia (-41.0 percent to EUR141.78); Prague (-29.4 percent to EUR79.57); Manchester, England (-28.3 percent to EUR73.86); and Cologne, Germany (-25.1 percent to EUR91.73).
  • Two markets came in virtually flat in RevPAR: Geneva dropped 0.1 percent to EUR138.95 and Vienna fell 0.2 percent to EUR97.55.
  • Moscow experienced the largest RevPAR decrease, falling 42.9 percent to EUR101.55, followed by Prague with a 38.2-percent decline to EUR52.99.

Asia / Pacific Region

Hotels in the Asia/Pacific region experienced mixed results when reported in U.S. dollars for all three key performance metrics for September 2009, according to data compiled by STR Global.

In year-over-year measurements, the Asia/Pacific region's occupancy rose 1.4 percent to 62.3 percent; average daily rate declined 7.7 percent to US$123.72; and revenue per available room fell 6.3 percent to US$77.12.

"Asia Pacific reported the lowest RevPAR declines (-6.3 percent) since September 2008", said Elizabeth Randall, managing director of STR Global. "A slight increase in occupancy boosted RevPAR; it was the first increase in occupancy since October 2007. The coming months should see improvements on the poor performance of the last quarter of 2008, which had been weakened by the economic downturn. Beijing, Hong Kong and Shanghai saw smaller declines compared to the post-Olympic period, reporting RevPAR decreases of only 9.2 percent, 11 percent and 19.2 percent, respectively".

Among the key markets, Beijing, China, reported the largest occupancy increase, up 18.8 percent to 57.1 percent, followed by Phuket, Thailand (+13.3 percent to 46.0 percent), and Sydney, Australia (+10.5 percent to 79.0 percent). Two markets posted double-digit occupancy declines: New Delhi, India (-12.2 percent to 63.2 percent), and Bali, Indonesia (-10.6 percent to 76.0 percent).

Three markets posted double-digit ADR increases: Bali (+15.4 percent to US$130.64); Tokyo, Japan (+14.1 percent to US$228.19); and Osaka, Japan (+13.5 percent to US$123.29). New Delhi reported the largest ADR decrease, falling 37.2 percent to US$157.20. Three other markets posted ADR decreases of more than 20 percent: Mumbai, India (-30.7 percent to US$170.96); Beijing (-23.6 percent to US$97.44); and Shanghai, China (-22.6 percent to US$107.59).

Seoul, South Korea, experienced the largest RevPAR increase, up 15.9 percent to US$132.10, followed by Osaka with a 13.2-percent increase to US$94.75. New Delhi (-44.8 percent to US$99.32) and Mumbai (-31.3 percent to US$103.27) reported the largest declines in RevPAR for the month.

Middle East / Africa Regions

The Middle East/Africa region reported mixed year-over-year results in the three key measurements reported in U.S. dollars for September 2009, according to data compiled by STR Global.

The region's occupancy dropped 8.2 percent to 56.9 percent; average daily rate increased 1.5 percent to US$140.66; and revenue per available room decreased 6.9 percent to US$80.00.

"September showed the lowest monthly RevPAR decline (-6.9 percent) for the region since December 2008", said Elizabeth Randall, managing director of STR Global. "However, whilst we have seen declines in RevPAR stabilise in recent months, the earlier start of Ramadan in mid-August this year benefited this month's results as business was stronger than in September 2008. RevPAR benefited from the first increase in average room rate since March 2009.

"It is good to see more cities reporting monthly RevPAR increases with Amman, Beirut, Cairo, Istanbul and Jeddah all growing on last year", she continued. "It will be interesting to see if this positive sentiment continues over the coming months".

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

  • Beirut, Lebanon, reported the largest increases in all three metrics: Occupancy rose 56.2 percent to 58.1 percent; ADR increased 57.5 percent to US$255.71; and RevPAR jumped 146.0 percent to US$148.70.
  • Istanbul, Turkey (+11.7 percent to 71.1 percent), and Cairo, Egypt (+2.6 percent to 54.1 percent), also posted occupancy increases.
  • Riyadh, Saudi Arabia, experienced the largest occupancy decrease, falling 25.8 percent to 34.3 percent, followed by Muscat, Oman (-18.0 percent to 37.0 percent), and Cape Town, South Africa (-17.8 percent to 50.6 percent).
  • Other than Beirut, two markets reported double-digit ADR increases: Amman, Jordan (+17.9 percent to US$134.71), and Cairo (+15.0 percent to US$118.68).
  • Dubai, United Arab Emirates, posted the largest ADR decrease, falling 8.3 percent to US$175.62, followed by Abu Dhabi, UAE, with a 6.8-percent decrease to US$200.52.
  • Three markets experienced RevPAR decreases of more than 15 percent: Riyadh (-21.3 percent to US$77.83); Abu Dhabi (-16.9 percent to US$129.92); and Muscat (-15.3 percent to US$72.83).

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