STR Reports Global Hotel Performance for August 2011

According to data compiled by STR Global, hotels in the Asia Pacific region experienced mostly positive results in the three key performance metrics during August 2011 when reported in U.S. dollars.

In year-on-year measurements, the Asia Pacific region's occupancy ended the month virtually flat with a 0.1% increase to 68.1%, ADR increased 12.2% to US$142.86, and RevPAR jumped 12.3% to US$97.32.

"We see almost equal demand and supply growth across Asia Pacific, keeping occupancy levels steady for the moment," said Elizabeth Randall, managing director of STR Global. "Average room rates continue to improve against the prior year. Looking at Japan, five months post the tragic events in March, hoteliers reported 81% occupancy, matching August 2010 results. Demand is returning month on month and we would expect it to soon grow again against last year."

Highlights from key market performers for August 2011 in local currency (year-on-year comparisons):

- Bangkok, Thailand, reported the largest occupancy increase, rising 26.7% to 65.3%, followed by Phuket, Thailand, with a 25.2% increase to 71.8%.

- Three markets reported double-digit occupancy decreases: Shanghai, China (-21.1% to 56.3%); New Delhi, India (-19.4% to 52.9%); and Jakarta, Indonesia (-13.4% to 51.7%).

- Hong Kong jumped 27.9% in ADR to HKD1,749.51, achieving the largest increase in that metric.

- Shanghai (-12.5% to CNY714.45) and Tokyo, Japan (-9.2% to JPY13,021.13), reported the largest ADR decreases.

- Three markets experienced RevPAR increases of more than 30%: Hong Kong (+34.3% to HKD1,502.20); Bangkok (+32.2% to THB1,878.67); and Phuket (+31.2% to THB2,000.64).

-  Shanghai RevPAR fell 31.0% to CNY401.89, reporting the largest decrease in that metric, followed by New Delhi with a 24.7% decrease to INR3,592.66.

Highlights from key market performers for August 2011 in U.S. dollars (year-on-year comparisons):

- Three markets experienced ADR increases over 25%: Brisbane, Australia (+31.3% to US$201.61); Hong Kong (+27.6% to US$224.46); and Sydney, Australia (+25.2% to US$185.59).

- Shanghai (-6.6% to US$111.98) and New Delhi (-5.0% to US$147.15) posted the largest ADR decreases for the month.

- Bangkok jumped 38.4% in RevPAR to US$62.50, reporting the largest increase in that metric, followed by Phuket (+37.4% to US$66.56) and Hong Kong (+34.1% to US$192.73).

- Two markets reported double-digit RevPAR decreases: Shanghai (-26.3% to US$62.99) and New Delhi (-23.5% to US$77.90).

The Americas

The Americas region recorded positive results in the three key performance metrics when reported in U.S. dollars for August 2011.

The Americas region ended August with a 3.5% increase in occupancy to 66.3%, ADR was up 3.8% to US$104.58, and RevPAR rose 7.4% for the month to US$69.34.

Among the region's key markets, Miami, Florida, achieved the only double-digit occupancy increase, rising 11.1% to 73.6%. Toronto, Canada, fell 3.6% in occupancy to 74.1%, reporting the largest decrease in that metric, followed by Montreal, Canada, with a 3.4% decrease to 75.2%.

Sao Paulo, Brazil, jumped 28.9% in ADR to US$148, experiencing the largest increase in that metric. Three other markets also experienced ADR increases of 15% or more: Rio de Janeiro, Brazil (+15.3% to US$190.61); San Francisco (+15.3% to US$159.76); and Buenos Aires, Argentina (+15% to US$140.69). Washington, D.C., ended the month virtually flat with a 0.7% decrease to US$123.34, reporting the only decrease in that metric.

Three markets achieved RevPAR increases of more than 20%: Sao Paulo (+36.5% to US$109.42); Miami (+23.2% to US$89.86); and Rio de Janeiro (+21.7% to US$140.37. Washington, D.C., reported the only RevPAR decrease, falling 3.5% to US$83.99.

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 2011.

"Demand continued to grow across Europe for August and, coupled with limited supply increases, that bodes well for European hoteliers," said Ms. Randall. "Whilst we saw the first monthly average rate decline for this year in August, it can mainly be attributed to exchange rate effects. Looking at the region in constant currency, Europe still reported a year-on-year 0.6% increase."

Highlights from key market performers for August 2011 include (year-on-year comparisons, all currency in euros):

- Madrid, Spain, jumped 27.8% in occupancy to 56.4%, reporting the largest increase in that metric, followed by Milan, Italy (15.8% to 42.6%) and Florence, Italy (+12.2% to 66.1%.

- Istanbul, Turkey, fell 20.7% in occupancy to 53.9%, reporting the largest decrease in that metric, followed by Zurich, Switzerland (-11.3% to 66.2%).

- Paris, France, achieved the largest ADR increase, rising 19.7% to EUR217.60, followed by Florence with a 15.2% increase to EUR141.39.

- Birmingham, United Kingdom, ended the month with the only double-digit ADR decrease, falling 12.4% to EUR49.60.

- Three markets experienced RevPAR increases of more than 20%: Madrid (+39.8% to EUR41.46); Florence (+29.2% to EUR93.42); and Paris (+21.3% to EUR153.72).

- Three markets reported double-digit RevPAR decreases: Istanbul (-17.9% to EUR75.14); Stockholm, Sweden (-14.5% to EUR93.63); and Geneva, Switzerland (-13.5% to EUR108.60).

Middle East / Africa

The Middle East/Africa region reported mixed results in the three key performance metrics during August 2011 when reported in U.S. dollars.

The region ended the month with a 9.5% decrease in occupancy to 48.3%, a 12.9% rise in ADR to US$149.65, and a 2.2% increase in RevPAR to US$72.31.

"The holy month of Ramadan fell together with the month of August this year, reducing demand across the region," Ms. Randall said. "This, in addition to the consequences following the Arab Spring, impacted this month's results. Average room rates grew across the regions with the only reported declines across Northern Africa."

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

- Abu Dhabi, United Arab Emirates, reported the only occupancy increase, rising 3.9% to 49.8%.

- Cairo, Egypt (-50.9% to 21.8%), and Amman, Jordan (-37.7% to 28.2%), posted the largest occupancy decreases for the month.

- Riyadh, Saudi Arabia achieved the largest ADR increase, rising 6.0% to US$223.00, followed by Jeddah, Saudi Arabia with a 5.3% increase to US$216.32.

- Beirut, Lebanon, fell 20% in ADR to US$202.80, experiencing the largest decrease in that metric, followed by Abu Dhabi with a 16.7% decrease to US$109.54.

- Cape Town, South Africa, was the only key market to achieve a RevPAR increase, rising 3.7% to US$53.27.

- Three markets reported RevPAR decreases of more than 30%: Cairo (-54.9% to US$24.46); Amman (-39.2% to US$38.37); and Beirut (-34.7% to US$76.87).

See recent travel news from: Travel News Asia, STR, August 2011