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Global Hotel Industry records Positive ADR and RevPAR Growth in July 2008

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The global hotel industry recorded positive growth in average daily rate and revenue per available room for the month of July 2008, according to data from STR and STR Global. July occupancies fell in all but one world region. Data for the survey was gathered from more than 36,150  hotels comprising 4.93 million guestrooms worldwide.

"Global data for July followed the same pattern that we have seen all year," said James Chappell, managing director of STR Global. "The US and Europe clearly are at a very different stage of the cycle than the other Global regions."

Growth in the Middle East/Africa region ranked first in each of the three performance categories. Regional rates increased by 29.9% in July and measured US$149.57 per night. Middle East/Africa was the only region to post occupancy gains in July. Occupancy was up 3.5% to 70.7% for the month. The region recorded robust RevPAR gains of 34.5% in July and RevPAR stands at US$105.75 for the month.

European hotels sampled by STR Global showed ADR growth of 14.1% for July, due in part to the U.S. Dollar conversion. July ADR in Europe was US$166.81. Occupancies fell 2.3% in July to 70.3% and RevPAR is up 11.5%. RevPAR at European properties averaged US$117.22 for July.

"European performance fell as the occupancy dipped below levels of 2007 and although Average Rate has been holding up, it wasn't enough to offset the fall," added Mr. Chappell.

Performance in the Asia Pacific region relied on strong rate growth - up 14.8% in July - to offset declining occupancies. Average Daily Rate in the region was US$136.52. July saw Asia Pacific hotel occupancy fall 7% to 65.4%, the worst decline among the four regions. Nevertheless, Asia Pacific RevPAR gained 6.8% in July and stands at US$89.32.

Mr. Chappell explained that the Asia Pacific region is a bright spot among the survey, "The Tiger Economies of Asia, which have been growing strongly from the last two years, continued to post impressive results and the Olympics in August will only boost the year-to-date figures."

The Americas region lagged in ADR and RevPAR growth. Occupancy fell 1.9% in July, buffered by South American gains. Occupancy in the Americas was 69.4% for the month. Average daily rate was up 2.9% in the Americas to US$108.58. In July, RevPAR in the Americas was the lowest in the STR Global survey at US$75.36 - a 0.9% increase for July.

Performance in the Americas region was weakened by the Caribbean sub-region, which was the only such locale in the survey to record declining rates (down 8%) and also declining RevPAR (down 9.9%) for the month.

Mr. Chappell cautioned, "Hotel companies will be looking to see if rates will continue to hold as growth rates decline and economic indicators speak of worse to come."

See other recent news regarding: Airlines, Aviation, Flights, HotelsPromotions, New Hotels, STR, Research, Survey, Visitor Arrivals, July 2008

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