Global Hotel Performance in February 2010

According to data compiled by STR Global, 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-on-year measurements, the Asia Pacific region's OR rose 4.7% to 60.6%, ADR increased 16.2% to US$131.36, and RevPAR jumped 21.6% to US$79.65.

"The Asia Pacific region continues on its recovery path and reported 20% RevPAR increase for the first two months of the year," said Elizabeth Randall, managing director of STR Global. "This follows on from a 2% 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-on-year comparisons, all currency results in U.S. dollars):

- Phuket, Thailand, ended the month with the largest occupancy increase, rising 35.9% to 85.3%, followed by Bangkok, Thailand (+23.1% to 70.1%), and Bali, Indonesia (20.2% to 70.3%).

- Three key markets posted occupancy decreases: Shanghai, China (-10.9% to 36.7%); Seoul, South Korea (-9.5% to 76.6%); and Jakarta, Indonesia (-2.5% to 62.6%).

- Sydney, Australia, reported the largest ADR increase, jumping 50.2% to US$175.86, followed by Brisbane, Australia (+41% to US$154.88), and Seoul (+40.3 to US$143.90).

- Beijing experienced the only double-digit ADR decrease, falling 14% to US$78.53.

- Four markets posted RevPAR increases of more than 50%: Sydney (+70.8% to US$164.88); Brisbane (+55.0% to US$126.60); Phuket (+53.2% to US$119.87); and Bali (+52% to US$78.49).

- Shanghai reported the largest RevPAR decrease, falling 18.6% to US$36.10, followed by Beijing with an 8.6%decrease to US$31.84.

The Americas

In February 2010, the region's OR ended the month virtually flat with a 0.8% increase to 53.4%, ADR fell 2.7% to US$99.81, and RevPAR dropped 2% 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% to 86%, ADR increased 123.8% to US$222.80, and RevPAR jumped 208.3% to US$191.59.

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

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

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

Europe

"In U.S.-dollar terms Europe showed a strong occupancy and average room rate recovery for the first two months of the year," Elizabeth Randall said. "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% to 64.3%, followed by Rome, Italy (+20.9% to 54.8%), and Helsinki, Finland (+20.5% to 59.4%).

- Hamburg, Germany, reported the largest occupancy decrease, falling 8.6% to 60.9%, followed by Oslo, Norway, with a 6.6% decrease to 57.5%.

- Three markets posted ADR increases of more than 20%: Stockholm, Sweden (+21% to EUR111.81); Malmo, Sweden (+20.6% to EUR89.52); and Gothenburg, Sweden (+20.3% to EUR90.88).

- Dublin, Ireland, dropped 20.9% to EUR75.79, reporting the largest ADR decrease for the month.

- Tel Aviv posted the largest RevPAR increase, rising 44.7% to EUR94.11, followed by Stockholm (+29.3% to EUR69.35) and Munich, Germany (+26.2% to EUR72.30).

- Two markets ended the month with double-digit RevPAR decreases: Dublin (-24% to EUR41.71) and Copenhagen, Denmark (-4.1% to EUR47.38).

Middle East

The Middle East / Africa region's OR rose 1.9% to 65.7%, ADR increased 1.7% to US$166.18, and RevPAR grew 3.6% 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% RevPAR decline for the first two months of this year, which is a marked improvement from a 10% RevPAR decline in the 4th quarter 2009," said Elizabeth Randall.

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% to 86.2%, followed by Muscat, Oman, with a 10% increase to 73.2%.

- Abu Dhabi, UAE experienced the largest decreases in all three key metrics. The market's occupancy fell 31.2% to 58.9%, ADR dropped 39.9% to US$233.03, and RevPAR decreased 58.7% to US$137.28.

- Three markets posted ADR increases of more than 20%: Beirut, Lebanon (+48.1% to US$243.13); Cape Town, South Africa (+33.7% to US$163.36); and Johannesburg, South Africa (+29.5% to US$100.03).

- Beirut reported the largest RevPAR increase, jumping 42.1% to US$169.81.

- Other than Abu Dhabi, two markets posted RevPAR decreases: Muscat (-9.9% to US$186.84) and Riyadh, Saudi Arabia (-1.1% to US$179.73).

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