STR Reports September 2014 Performance of Hotels in Dubai, London, Singapore and Sydney

STR Global has released its preliminary September 2014 data from hotels in Dubai, London, Singapore and Sydney.

STR’s preliminary September data for Dubai indicates negative RevPAR performance. Based on daily data from September, Dubai reported:

- increases in supply (+7.4%) and demand (+7.8%);

- a 0.3% increase in occupancy to 76.3%;

- a 4.0% decrease in ADR to AED671.87; and

- a 3.7% decline in RevPAR to AED512.83.

“Supply and demand for Dubai increases, while both high, kept pace with one another; therefore, the city was able to maintain the same occupancy levels as the year before,” said Elizabeth Winkle, managing director of STR Global. “As the temperature in the region begins to cool and business returns to the city, we start to see demand come back post-summer.”

London

London reported:

- increases in supply (+3.3%) and demand (+4.6%);

-  a 1.2% increase in occupancy to 89.4%;

- a 0.9% increase in ADR to £154.24; and

- a 2.1% increase in RevPAR to £137.87.

“London reported growth in RevPAR performance for the month of September, traditionally a strong business month for the capital,” Ms. Winkle said. “London grew year on year across all the key metrics, demand outpacing supply, and helping to achieve nearly 90% occupancy for the month ... September results were spot-on to what we forecasted for the month, and we are confident that London will finish the year with an overall 4.0% RevPAR growth as we, in conjunction with Tourism Economics, forecasted for 2014.”

Singapore

Singapore reported:

- increases in supply (+2.6%) and demand (+3.5%);

- a 0.9% increase in occupancy to 82.5%;

- a 0.7% decrease in ADR to Sin$324.61; and

- a 0.2% increase in RevPAR to Sin$267.84.

“Singapore managed to maintain the same levels of performance for the month of September as last year,” said Ms. Winkle. “Year after year, the city of Singapore is taken over by the race track of the Formula 1 grand prix, which makes September traditionally the month with the highest ADR achieved for the market.”

Sydney

Sydney reported:

- increases in supply (+0.5%) and demand (+2.2%);

- a 1.7% increase in occupancy to 83.1%;

- a 3.0% increase in ADR to A$185.96; and

- a 4.8% increase in RevPAR to A$154.50.

“Sydney grew all the key performance indicators for the month of September,” Ms. Winkle said. “Demand is outpacing supply growth, keeping occupancy levels above 80%, levels that the city is very attuned to. Occupancy has rarely dropped below 75% in the last three years ... Sydney’s results for the month of September were in line with predictions, and the market is expected to finish the year with a 3.1% increase in RevPAR as forecasted in conjunction with Tourism Economics.”