Hotels in Asia Pacific Lead Global Occupancy Recovery

According to data compiled by STR Global, hotels in the Asia Pacific region experienced increases in all three key performance metrics for January 2010 when reported in U.S. dollar. In year-on-year measurements, the Asia Pacific region's OR rose 13.9% to 61%, ADR increased 5.6% to US$130.75, and RevPAR jumped 20.3% 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 and Oceania improving 3.2%," said Elizabeth Randall, managing director of STR Global. "The region achieved the highest occupancy of 61%, 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 in January 2010

- Beijing, China, reported the largest occupancy increase among the markets, rising 41.9% to 51%, followed by Shanghai, China (+41.4% to 49.1%), and Phuket, Thailand (+32.7% to 86%).

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

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

- Mumbai, India, ended the month with the largest ADR decrease, falling 8% to US$192.79.

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

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

January 2010 Results for Hotels in Europe

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.

"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. "Whilst European occupancy stands at 48.2% - some 12.8 percentage points behind Asia Pacific - it reflects a continuing stabilisation of market conditions, may it be on low levels."

Highlights from Key Market Performers in January 2010

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

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

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

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

- Tel Aviv experienced the largest RevPAR increase, jumping 51.8% to EUR88.92, followed by Frankfurt (+17.6% to EUR72.36) and Berlin (+14% to EUR41.74).

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

Hotels in Middle East / Africa - January 2010 Results

The region's OR in January fell 2.3% to 54.8%, ADR decreased 1.9% to US$170.20, and RevPAR decreased 4.1% 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," Ms Randall said. "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 ... It is good to see the decline is getting smaller, from -7% in December to -4% 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 from Key Market Performers in January 2010

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

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

- Three markets experienced ADR increases of 25% or more: Cape Town, South Africa (+49% to US$166.30); Johannesburg (+34.6% to US$92.62); and Beirut (+25.7% to US$206).

- Muscat led the ADR decreases, falling 25% to US$256.73, followed by Abu Dhabi with a 18.3% decrease to US$286.80.

- Cape Town ended the month with the largest RevPAR increase, jumping 46% to US$98.58, followed by Beirut with a 33.4% increase to US$118.76.

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

See recent travel news from: Travel News Asia, STR, January 2010