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Worldwide Hotel Performance Metrics Show Mixed Results in February

Vacation News » Vacation & Leisure Real Estate Edition | By Michael Gerrity | March 25, 2010 9:00 AM ET



The Americas

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Elizabeth Randall

According to data compiled by Smith Travel Research (STR) and STR Global, the Americas region recorded mixed results in the three key performance metrics when reported in U.S. dollars for February 2010.

In February 2010, the region's occupancy ended the month virtually flat with a 0.8-percent increase to 53.4 percent, average daily rate fell 2.7 percent to US$99.81, and revenue per available room dropped 2.0 percent to US$53.35.

Among the key markets of the region, Vancouver, British Columbia, which hosted the 2010 Winter Olympics 12-28 February 2010, reported the largest increases in all three key metrics. The market's occupancy rose 37.7 percent to 86.0 percent, ADR increased 123.8 percent to US$222.80, and RevPAR jumped 208.3 percent to US$191.59.

Sao Paulo, Brazil, also experienced a large occupancy increase, rising 21.8 percent to 56.5 percent. Alberta, Canada, posted the largest occupancy decrease, falling 11.3 percent to 54.4 percent.

Other than Vancouver, three markets reported ADR increases of more than 20 percent: Sao Paulo (+33.9 percent to US$98.25); Rio de Janeiro (+32.3 percent to US$214.67); and Manitoba/Saskatchewan, Canada (+22.1 percent to US$108.19). Chicago, Illinois, posted the largest ADR decrease, falling 9.7 percent to US$92.17, followed by Washington, D.C., with an 8.4-percent decrease to US$135.83.

Sao Paulo (+63.1 percent to US$55.50) and Rio de Janeiro (+37.1 percent to US$151.45) followed Vancouver with large RevPAR increases. Washington, D.C., fell 9.7 percent to US$76.81, reporting the largest RevPAR decrease for the month.

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


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Asia / Pacific Region

Hotels in the Asia/Pacific region experienced increases in all three key performance metrics for February 2010 when reported in U.S. dollars.

In year-over-year measurements, the Asia/Pacific region's occupancy rose 4.7 percent to 60.6 percent, average daily rate increased 16.2 percent to US$131.36, and revenue per available room jumped 21.6 percent to US$79.65.

"The Asia-Pacific region continues on its recovery path and reported 20 percent RevPAR increase for the first two months of the year", said Elizabeth Randall, managing director of STR Global. "This follows on from a 2 percent RevPAR increase for the 4th quarter 2009, which underlines that the bounce of poor performance last year is taking on strength. Asia-Pacific is currently leading the way in RevPAR improvements".

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

  • Phuket, Thailand, ended the month with the largest occupancy increase, rising 35.9 percent to 85.3 percent, followed by Bangkok, Thailand (+23.1 percent to 70.1 percent), and Bali, Indonesia (20.2 percent to 70.3 percent).
  • Three key markets posted occupancy decreases: Shanghai, China (-10.9 percent to 36.7 percent); Seoul, South Korea (-9.5 percent to 76.6 percent); and Jakarta, Indonesia (-2.5 percent to 62.6 percent).
  • Sydney, Australia, reported the largest ADR increase, jumping 50.2 percent to US$175.86, followed by Brisbane, Australia (+41.0 percent to US$154.88), and Seoul (+40.3 to US$143.90).
  • Beijing experienced the only double-digit ADR decrease, falling 14.0 percent to US$78.53.
  • Four markets posted RevPAR increases of more than 50 percent: Sydney (+70.8 percent to US$164.88); Brisbane (+55.0 percent to US$126.60); Phuket (+53.2 percent to US$119.87); and Bali (+52.0 percent to US$78.49).
  • Shanghai reported the largest RevPAR decrease, falling 18.6 percent to US$36.10, followed by Beijing with an 8.6-percent decrease to US$31.84.

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

str-global-03252010-chart-2.jpg


Europe

The European hotel industry posted generally favorable results in year-over-year metrics when reported in U.S. dollars, euros and British pounds for February 2010.

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

str-global-03252010-chart-3.jpg

"In U.S.-dollar terms Europe showed a strong occupancy and average room rate recovery for the first two months of the year", said Elizabeth Randall, managing director of STR Global. "Even in euro terms the improving occupancy levels have enabled hoteliers to strengthen their rates, particularly in Northern and Western Europe".

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

  • Tel Aviv, Israel, experienced the largest occupancy increase, jumping 44.0 percent to 64.3 percent, followed by Rome, Italy (+20.9 percent to 54.8 percent), and Helsinki, Finland (+20.5 percent to 59.4 percent).
  • Hamburg, Germany, reported the largest occupancy decrease, falling 8.6 percent to 60.9 percent, followed by Oslo, Norway, with a 6.6-percent decrease to 57.5 percent.
  • Three markets posted ADR increases of more than 20 percent: Stockholm, Sweden (+21.0 percent to EUR111.81); Malmo, Sweden (+20.6 percent to EUR89.52); and Gothenburg, Sweden (+20.3 percent to EUR90.88).
  • Dublin, Ireland, dropped 20.9 percent to EUR75.79, reporting the largest ADR decrease for the month.
  • Tel Aviv posted the largest RevPAR increase, rising 44.7 percent to EUR94.11, followed by Stockholm (+29.3 percent to EUR69.35) and Munich, Germany (+26.2 percent to EUR72.30).
  • Two markets ended the month with double-digit RevPAR decreases: Dublin (-24.0 percent to EUR41.71) and Copenhagen, Denmark (-14.1 percent to EUR47.38).

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


str-global-03252010-chart-4.jpg


The Middle East / Africa


The Middle East/Africa region reported increases in all three key measurements for February 2010, when reported in U.S. dollars.

The region's occupancy rose 1.9 percent to 65.7 percent, average daily rate increased 1.7 percent to US$166.18, and revenue per available room grew 3.6 percent to US$109.23.

"The Middle East/Africa region reported its first positive month of RevPAR growth since the second half of 2008--resulting in only a 0.8 percent RevPAR decline for the first two months of this year, which is a marked improvement from a 10 percent RevPAR decline in the 4th quarter 2009", said Elizabeth Randall, managing director of STR Global.

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

  • Dubai, United Arab Emirates, reported the largest occupancy increase, rising 15.9 percent to 86.2 percent, followed by Muscat, Oman, with a 10.0-percent increase to 73.2 percent.
  • Abu Dhabi, UAE experienced the largest decreases in all three key metrics. The market's occupancy fell 31.2 percent to 58.9 percent, ADR dropped 39.9 percent to US$233.03, and RevPAR decreased 58.7 percent to US$137.28.
  • Three markets posted ADR increases of more than 20 percent: Beirut, Lebanon (+48.1 percent to US$243.13); Cape Town, South Africa (+33.7 percent to US$163.36); and Johannesburg, South Africa (+29.5 percent to US$100.03).
  • Beirut reported the largest RevPAR increase, jumping 42.1 percent to US$169.81.
  • Other than Abu Dhabi, two markets posted RevPAR decreases: Muscat (-9.9 percent to US$186.84) and Riyadh, Saudi Arabia (-1.1 percent to US$179.73).

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


str-global-03252010-chart-5.jpg



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