STR Reports Global Hotel Performances for January 2012

According to data compiled by STR Global, hotels in the Asia Pacific region experienced mixed results in the three key performance metrics for January 2012 when reported in U.S. dollars.

In year-on-year measurements, the Asia Pacific region's occupancy reported a 3.4% decrease to 60%, ADR increased 9.8% to US$152.92 and RevPAR was up 6% to US$91.81.

"The region saw a slightly weaker start in the new year, with a small decline in demand (-0.8%) reflected in a drop in occupancy (-3.4%)," said Elizabeth Randall, managing director of STR Global. "Average rate growth helped to boost RevPAR in the region. The Maldives, which have been in the news lately, continue to show double-digit demand growth (+11.6%) and increases in occupancy and average room rates. Additionally to the perceived stability of the country, currency exchange rates play a key role in the island nation, with average room rates increasing 37.4% in local currency but only 15.6% in British pounds, the currency of its main source market."

Highlights from key market performers in January 2012 in local currency (year-on-year comparisons):

Kuala Lumpur, Malaysia (+10.0% to 69.9%), and Osaka, Japan (+10.0% to 74.7%), reported the only double-digit occupancy increases.

Hong Kong rose 19.2% in ADR to HK$1,996.39, reporting the largest increase in that metric, followed by Jakarta, Indonesia, with a 16.3% increase to IDR882,093.23.

Three markets experienced RevPAR increases of more than 15%: Osaka (+18.9% to IDR7,832.13); Bali, Indonesia (+16.4% to IDR1,169,424.37); and Hong Kong (+15.9% to HK$1,591.90).

New Delhi, India, fell 8.5% in RevPAR to INR5,148.10, reporting the largest decrease in that metric.

Highlights from key market performers for January 2012 in U.S. dollars (year-on-year comparisons):

Hong Kong achieved the largest ADR increase, rising 19.7% to US$257.37, followed by Jakarta (+17.9% to US$97.82) and Osaka(+15.8% to US$136.89).

New Delhi decreased 15.8% in ADR to US$158.25.

Four markets experienced RevPAR increases of more than 15%: Osaka (+27.5% to US$102.24); Bali (+18.0% to US$129.69); Hong Kong (+16.4% to US$205.22); and Jakarta (+16.3% to US$60.34).

The Americas

The Americas region recorded positive results in the three key performance metrics when reported in U.S. dollars for January 2012.

In January 2012, the Americas region reported a 3.9% increase in occupancy to 49.8%, a 3.7% gain in ADR to US$103.98 and a 7.7% jump in RevPAR to US$51.81.

Among the region's key markets, Chicago, Illinois, reported the largest occupancy increase, rising 15.4% to 47.4%, followed by Rio de Janeiro, Brazil, with an 8.4% increase to 82.4%.

Panama City, Panama, experienced the largest decreases in all three key performance metrics. Its occupancy fell 15.0% to 55.4%, its ADR was down 9.0% to US$121.60 and its RevPAR fell 22.7% to US$67.32.

Sao Paulo, Brazil, achieved the largest ADR increase, rising 15.5% to US$144.40, followed by Rio de Janeiro (+13.7% to US$218.13) and San Francisco, California (+10.4% to US$157.48).

Three markets reported RevPAR increases of more than 15%: Chicago (+24.3% to US$46.39); Rio de Janeiro (+23.2% to US$179.71); and Miami, Florida (+15.8% to US$148.71).

Europe

The European hotel industry posted mostly positive results in year-on-year metrics when reported in U.S. dollars, euros and British pounds for January 2012.

"The European hotel market continued to show robust performance for the beginning of the year," said Ms. Randall. "Occupancy and average room rates (in euro terms) are growing compared to last year. Over the past three months, we have seen supply increase by around 3% each month, which is above the long-term European average of around 1.2%."

Highlights from key market performers for January 2012 include (year-on-year comparisons, all currency in euros):

Reykjavik, Iceland, jumped 32.2% in occupancy to 45.9%, reporting the largest increase in that metric, followed by Prague, Czech Republic (20.2% to 45.4%), and Vilnius, Lithuania (+18.4% to 44.9%).

Athens, Greece, fell 17.4% in occupancy to 36.6%, posting the largest decrease in that metric.

Two markets experienced double-digit ADR increases: Tallinn, Estonia (+24.7% to EUR67.87) and Paris, France (+13.7% to EUR233.68).

Reykjavik fell 19.5% in ADR to EUR55.64, posting the largest decrease in that metric.

Tallinn rose 23.5% in RevPAR to EUR30.84, achieving the largest increase in that metric, followed by Moscow, Russia (+15.7% to US$65.28), and Budapest, Hungary (+14.2% to EUR23.53).

Athens ended the month with the only double-digit RevPAR decrease, falling 15.6% to EUR33.63.

Middle East/Africa

The Middle East/Africa region reported mostly positive performance results in January 2012 when reported in U.S. dollars.

In January 2012, the region was flat in occupancy at 55.5%, reported a 6.4% increase in ADR to US$181.61 and achieved a 6.4% increase in RevPAR to US$100.88.

"The Middle East started the new year with good results across all key indicators with double-digit RevPAR and occupancy growth," Ms. Randall said. "The supply increase dropped for the first time in three years below the 5% mark. Across Africa, we saw the lowest monthly supply increase (+1.5%) for the last three years. The continuing uncertainty across Northern Africa pushed down occupancy, while occupancy across Southern Africa grew."

Highlights among the region's key markets for January 2012 include (year-on-year comparisons, all currency in U.S. dollars):

Beirut, Lebanon, rose 32.0% in occupancy to 53.4%, reporting the largest increase, followed by Amman, Jordan (+30.8% to 64.7%), and Jeddah, Saudi Arabia (+26.9% to 74.0%).

Cairo, Egypt, reported the largest decreases in all three key performance metrics. The market's occupancy fell 42.4% to 36.4%, its ADR was down 13.0% to US$111.03, and its RevPAR decreased 49.9% to US$40.46.

Two markets experienced double-digit ADR increases: Jeddah (+13.4% to US$211.55) and Dubai, United Arab Emirates (+11.8% to US$269.85).

Four markets achieved RevPAR increases of more than 20%: Jeddah (+43.9% to US$156.53); Beirut (+38.7% to US$112.20); Dubai (+26.1% to US$232.72); and Amman (+23.8% to US$93.71).

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