STR Reports Global Hotel Performance in February 2011

According to data compiled by STR Global, hotels in the Asia Pacific region experienced increases in all three key performance metrics during February 2011 when reported in U.S. dollars.

In year-on-year measurements, the Asia Pacific region's occupancy rose 3.3% to 63.5%, ADR increased 13.9% to US$147.23, and RevPAR jumped 17.7% to US$93.49.

"The devastating natural disasters and the tragic losses of life and livelihoods currently dominate the region," said Elizabeth Randall, managing director of STR Global. "In local currency, Australia's hotels reported just a 0.1% RevPAR increase for February and a 1.5% increase for the first two months 2011. New Zealand reported a 2.4% RevPAR increase for the month and 0.8% year-to-date. Both countries saw drops in occupancy with slight average rate growth for the month and year-to-date. Japan, prior the tragic events in March, reported a 6.8% RevPAR increase for February and a 4.8% increase for the first two months this year, driven by improvements in occupancy and average rate."

Year-on-Year Comparison Highlights from Key Market Performers for February 2011 in Local Currency

- Beijing, China, experienced the largest occupancy increase, rising 13.8% to 45.8%, followed by Shanghai, China, with an 11.3% increase to 40%.

 - Seoul, South Korea, fell 4.9% in occupancy to 72.4%, reporting the largest decrease in that metric.

- Hong Kong, China, achieved the largest ADR increase, rising 23.5% to HK$1686.08.

- New Delhi, India, posted the only ADR decrease, falling 1.2% to UNR10073.64.

- Four markets achieved RevPAR increases of more than 25%: Hong Kong (+29.5% to HK$1312.70); Shanghai (+26.5% to CNY302.75); Jakarta, Indonesia (+26.4% to IDR544064.03); and Beijing (+26.0% to CNY269.98).

- Melbourne, Australia, fell 2.1% in RevPAR to A$135.74, reporting the largest decrease in that metric.

The Americas

The Americas region ended February with a 5.1% increase in occupancy to 56.2%, ADR was up 1.9% to US$102.19, and RevPAR rose 7.1% for the month to US$57.48.

Among the key markets, Sao Paulo, Brazil, experienced the largest occupancy increase, rising 20.5% to 68.6%, followed by Montreal, Canada, with a 13.6% increase to 57.1%. Vancouver, Canada, which hosted the 2010 Winter Olympics 12-28 February 2010, reported the largest occupancy decrease, falling 33.5% to 56.8%, followed by Manitoba/Saskatchewan (-4.5% to 61.2%), and New York (- 3.6% to 67.9%).

Sao Paulo jumped 30.4% in ADR to US$133.99, reporting the largest increase in that metric, followed by San Francisco, California (+15.3% to US$144.88), and Los Angeles, California (+14.4% to US$128.51).

Vancouver posted the largest decreases in ADR (-43.0% to US$130.32) and RevPAR (-62.1% to US$74.06).

Five markets ended the month with RevPAR increases of more than 20%: Sao Paulo (+57.1% to US$91.95); Los Angeles (+26.1% to US$91.18); San Francisco (+25.2% to US$102.53); Montreal, Canada (+24.5% to US$72.84); and Ottawa (+20.3% to US$104.53).

Europe

The European hotel industry posted positive results in year-on-year metrics when reported in U.S. dollars, euros and British pounds for February 2011.

"All European subregions reported growth in occupancy and average room rates for the month," said Ms. Randall. "As one of the top performers this month, Estonia and its capital Tallinn, which is a European City of Culture 2011, reported 37.2% RevPAR increase. Despite the growth, Estonia reported only EUR24.26 RevPAR. Iceland, Lithuania and Malta also reported high RevPAR growth for the month, coming from a low base last year."

Year-on-Year Comparison Highlights from Key Market Performers for February 2011 in Euros

- Athens, Greece, achieved the largest occupancy increase, rising 15.6% to 56.7%, followed by Dublin, Ireland (+11% to 61.4%), and Antwerp, Belgium (+10.8% to 65.7%).

- Malmo, Sweden, fell 12.9% in occupancy to 49.2%, reporting the largest decrease in that metric, followed by Salzburg, Austria (-11.9% to 43.1%).

- Four markets experienced ADR increases of more than 20%: Geneva, Switzerland (+29.7% to EUR242.30); Dusseldorf, Germany (+24.1% to EUR119.84); Istanbul, Turkey (+20.6% to EUR133.35); and Zurich, Switzerland (+20.1% to EUR186.13).

- Cologne, Germany (-14.1% to EUR93.24), ended the month with the only double-digit ADR decrease.

- Geneva jumped 39.6% in RevPAR to EUR162.53, reporting the largest increase in that metric, followed by Dusseldorf (+32.2% to EUR82.13) and Gothenburg, Sweden (+26.2% to EUR62.40).

- Cologne fell 24.1% in RevPAR to EUR57.33, reporting the largest decrease in that metric.

Middle East / Africa

The Middle East/Africa region's occupancy ended the month with a 12.6% decrease to 56.7%, its ADR rose 17.1% to US$188.53, and its RevPAR went up 2.3% to US$106.92.

"This month we see the impact of the demonstrations and political changes across the Middle East and Northern Africa," Ms. Randall said. "Northern Africa dropped substantially in occupancy as visitors stayed away. Egypt's occupancy dropped 78.5% to a monthly average of 15.9%. Across Lebanon, the recent collapse of the national unity government and the indictments by the Hariri tribunal have impacted the stability of the market and resulted in a drop in occupancy to a monthly average of 39% for February. In Bahrain, occupancy levels stayed at 61%, dropping only 17%. With the recent developments in Bahrain and the enforcement of a no-fly zone across Libya, the full impact of recent events remains to be seen."

Year-on-Year Comparison Highlights from Key Market Performers for February 2011 in US$

- Abu Dhabi, United Arab Emirates, experienced the largest occupancy increase, rising 27.3% to 74.1%.

- Two markets posted double-digit occupancy decreases: Cairo, Egypt (-80.1% to 14.6%), and Beirut, Lebanon (-46.7% to 37.4%).

- Two markets achieved double-digit ADR increases: Cairo (+24.8% to US$157.42 and Cape Town, South Africa (+13.6% to US$174.75).

- Beirut fell 22.7% in ADR to US$187.05, reporting the largest decrease in that metric.

- Four markets experienced RevPAR increases of more than 15%: Abu Dhabi (+21.4% to US$164.22); Cape Town (+19.6% to US$128.35); Muscat, Oman (+18.7% to US$210.81); and Riyadh, Saudi Arabia (+17.4% to US$210.18).

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