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STR Global Reports On Daily Figures For 2008

Vacation News » Vacation & Leisure Real Estate Edition | By Michael Gerrity | February 2, 2009 10:31 AM ET


(News Source: STR Global)

London, England -- STR Global gave its first review of the international hotel market for 2008 STR Global RGB green.jpgin a presentation by James Chappell, Managing Director, to the audience of owners, developers, asset managers and consultants at an event held by real estate advisors Cushman & Wakefield in London last month. The performance data of STR Global showed a reasonable picture for 2008 based on a strong first half year but the slowdown in demand in the last quarter was having a significant if mixed impact across Europe and the Middle East. Additionally, destinations with more mature hotel brand profiles were holding up better than others. 

James Chappell.jpg

James Chappell

Reminding the audience that the market was at the correct point of the economic cycle was of limited relief. Using STR Global's daily market data, Chappell was able to drill down into city-by-city detail and reveal considerable intra-regional differences during the exceptionally difficult trading of the last quarter of 2008. 

Within Europe the annual percentage change in revenue per available room for Berlin, London and Vienna fared tolerably well. However, the Barcelona and Prague markets had significant falls for the same period. "What we are able to see is that those markets with a greater proportion of internationally branded hotels have managed to hold their rate better than others", Chappell said. Furthermore, the trend in RevPAR decline over the last quarter illustrated the effect of the economic downturn.

 Selected European cities RevPAR percentage change 2008 (local currency)

 

October 08

November 08

December 08

Year-end 2008

RevPAR

% change

RevPAR

% change

RevPAR

 % change

RevPAR

% change

Berlin

€87

+10.5%

€61

-9.2%

€48

-6.5%

€65

+2.6%

London

£107

-5.1%

£101

-10.3%

£85

-3.6%

£101

+2.5%

Vienna

€120

+3.0%

€86

-8.1%

€98

-6.6%

€104

+4.5%

Barcelona

€100

-18.0%

€73

-34.3%

€48

-16.8%

€94

-10.3%

Prague

CZK 2062

-34.9%

CZK

1319

-29.0%

CZK

1230

-28.2%

CZK 1736

-23.6%

Middle Eastern cities had similar variations in RevPAR performance showing that the region is not immune to the global economic woes. The meltdown's impact on the Middle East was somewhat delayed as illustrated by the figures for the change in monthly RevPAR over the final quarter of 2008. Strong recent performances in some cities allow room for further falls.

Selected Middle Eastern cities RevPAR percentage change 2008 (local currency)

 

October 08

November 08

December 08

Year-end 2008

 

RevPAR

% change

RevPAR

% change

RevPAR

 % change

RevPAR

% change

Abu Dhabi

AED

1228

93.5%

AED

1424

72.8%

AED

770

8.9%

AED

891

40.4%

Cairo

EGP

668

33.0%

EGP

652

-5.8%

EGP

482

-26.6%

EGP

588

8.1%

Dubai

AED

1206

17.7%

AED

1208

-15.5%

AED

771

-25.9%

AED

918

-2.2%

 



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