STR Global Reports Global Hotel Performance for August 2010

According to data compiled by STR Global, hotels in the Asia Pacific region experienced increases in all three key performance metrics for August 2010 when reported in U.S. dollars.

In year-on-year measurements, the Asia Pacific region's OR rose 5.8% to 67.2%, ADR increased 10% to US$129, and RevPAR jumped 16.5% to US$86.74.

"The double-digit RevPAR growth across all sub-regions in Asia Pacific continued in August, underlining the market's leading position in RevPAR recovery," said Elizabeth Randall, managing director of STR Global. "The continued strength in economic growth coupled with world events in selected destinations (i.e. the first-ever Youth Olympics in Singapore) brought even more attention to the region in August"

Highlights from key market performers for August 2010: (year-on-year comparisons, all currency in U.S. dollars)

- Shanghai, China, reported the largest OR increase, rising 40.2% to 69.5%, followed by Beijing, China, with a 14.4% increase to 66.6%.

- Four markets reported OR decreases: Kuala Lumpur, Malaysia (-9.8% to 64.4%); Bangkok, Thailand (-8.7% to 51.4%); Osaka, Japan (-4.2% to 79.2%); and Phuket, Thailand (-3.3% to 56.4%).

- Hong Kong achieved the largest ADR increase, rising 31.4% to US$180.75, followed by Shanghai (+30% to US$123.96) and Bali, Indonesia (+17.5% to US$169.92).

- Shanghai jumped 82.4% in RevPAR to US$86.21, reporting the largest increase in that metric. Four other markets posted RevPAR increases of more than 20%: Hong Kong (+34.8% to US$145.92); Brisbane, Australia (+23.1% to US$134.98); Beijing (+22.1% to US$58.78); and Manila, Philippines (+20.4% to US$74.51).

- Bangkok reported the largest RevPAR decrease, falling 5.4% to US$45.23, followed by Phuket (-1.9% to US$45.63) and Osaka (-0.9% to US$103.17).

[See: Hong Kong Visitor Arrivals in August 2010]

Hotel Performance in August 2010 - The Americas

The Americas region recorded positive results in the three key performance metrics when reported in U.S. dollars. The region's OR rose 6.3% to 64.2%, ADR went up 1.7% to US$100.45, and RevPAR increased 8.1% to US$64.48.

Among the key markets in the region, Buenos Aires, Argentina, experienced the largest OR increase, rising 45% to 61.3%, followed by Santiago, Chile, with a 38% increase to 71.6%.

Four markets reported OR decreases: San Juan, Puerto Rico (-5.7% to 72.8%); Manitoba/Saskatchewan, Canada (-3.9% to 69.4%); Alberta, Canada (-2.1% to 65.8%); and Vancouver, Canada (-0.1% to 81.6%).

Rio de Janeiro, Brazil (+20.8% to US$162.01), and Sao Paulo, Brazil (+20.8% to US$113.80), achieved the largest ADR increases for the month. San Juan reported the only ADR decrease, falling 2.7% to US$137.07.

Santiago experienced the largest RevPAR increase for the month, rising 51.3% to US$100.07. Four other markets posted RevPAR increases of more than 25%: Buenos Aires (+47.6% to US$75.27); Sao Paulo (+33.1% to US$79.26); Rio de Janeiro (+31.9% to US$113.15); and Mexico City, Mexico (+29.4% to US$67.17).

Hotel Performance in August 2010 - Europe

The European hotel industry posted mixed results in year-on-year metrics when reported in U.S. dollars, euros and British pounds for August 2010.

"The recovery in the European hotel market continues in August with increases across all three performance measures when measured in euros," said Elizabeth Randall. "Whilst these results are still influenced by the weak comparables last year, the better economic conditions and the return of the business and MICE segments have assisted the recovery. This demand pick up has helped hoteliers to start rebuilding their ADRs which is for year to August, however, still about EUR10 below the YTD results achieved in 2008. A notable exception is London, which aided by the weak British pounds exchange rate, has achieved the highest YTD RevPAR results (GBP99.33) this year since 2004. June and July 2010 were the best performing months across that time frame."

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

- Frankfurt, Germany, experienced the largest OR increase, rising 22.6% to 58.2%, followed by Lisbon, Portugal (+19.7% to 77.5%), and Antwerp, Belgium (+16.8% to 66.5%).

- Three markets posted OR decreases of more than 5%: Athens, Greece (-7.8% to 52.5%); Geneva, Switzerland (-7.2% to 54.3%); and Aberdeen, Scotland (-6.8% to 69.4%).

- Three markets ended the month with ADR increases of more than 20%: Stockholm, Sweden (+39.9% to EUR130.45); Malmo, Sweden (+25.2% to UER85.99); and Zurich, Switzerland (+22.4% to EUR169.74).

- Barcelona, Spain, posted the only double-digit ADR decrease, falling 11.8% to EUR98.56.

- The following markets achieved RevPAR increases of more than 30%: Stockholm (+50.8% to EUR109.45); Frankfurt (+42.9% to EUR51.41); and Amsterdam, Netherlands (+34.5% to EUR106.56).

- Barcelona fell 11.2% in RevPAR to EUR75.45, reporting the largest decrease in that metric.

Hotel Performance in August 2010 - Middle East / Africa

The Middle East / Africa region reported mixed results in the three key performance measurements for August 2010 when reported in U.S. dollars.

The region's OR ended the month with a 9.4% decrease to 53%, ADR increased 7.4% to US$137.83, and RevPAR fell 2.8% to US$73.05.

"Ramadan, which took place 11 August - 9 September 2010, impacted the August results for the Middle East / Africa," said Ms. Randall. "August was the first month this year reporting an increase in ADR across the Middle East (+4.3%). Whilst one month doesn't make a trend, it is a good sign to see the sub-region finally picking up rate. The continuing increase in supply limits the short to medium-term recovery of occupancy. When considering the year-to-date results without the new supply which came on line in 2010, we get a small increase in occupancy. Post the excitement of the football World Cup, Africa reported a monthly decline in demand and occupancy levels."

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

- Riyadh, Saudi Arabia, experienced the only OR increase, rising 9.9% to 42.6%.

- Three markets reported OR decreases of more than 20%: Beirut, Lebanon (-37.3% to 47.1%); Cairo, Egypt (-25% to 43.1%); and Abu Dhabi, United Arab Emirates (-21.2% to 48%).

- Johannesburg, South Africa, rose 27% in ADR to US$105.84, reporting the largest increase in that metric, followed by Cape Town, South Africa, with a 17.5-percent increase to US$122.57.

- Abu Dhabi posted the largest ADR decrease, falling 28.0% to US$131.58.

- Three markets reported RevPAR increases for the month: Johannesburg (+17.2% to US$58.59); Riyadh (+11.4% to US$89.67); and Jeddah, Saudi Arabia (+2.5% to US$137.41).

- Abu Dhabi (-43.3% to US$63.12) and Beirut (-43.2% to US$117.23) reported the largest RevPAR decreases.

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