STR Reports Global Hotel Performance for August 2009

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(News Source: Smith Travel Research)

The Americas

(LONDON and HENDERSONVILLE, TN) -- The Americas region recorded declines in all three key performance metrics when reported in U.S. dollars for August 2009, according to data compiled by STR and STR Global.

In year-over-year comparisons, occupancy for the region dropped 9.7 percent to 61.1 percent; average daily rate declined 10.2 percent to US$98.12; and revenue per available room decreased 18.9 percent to US$59.97.

Among the key markets San Juan, Puerto Rico, was the only market to report an occupancy increase, jumping 12.6 percent to 81.7 percent. Washington, D.C., was virtually flat for the month, reporting an occupancy decrease of 0.6 percent to 65.5 percent. Three markets experienced occupancy decreases of more than 20 percent: Buenos Aires, Argentina (-31.9 percent to 41.8 percent); Santiago, Chile (-28.1 percent to 51.9 percent); and Mexico City, Mexico (-20.1 percent to 53.3 percent).

Manitoba/Saskatchewan, Canada, reported a small ADR increase, up 0.5 percent to US$102.62. Santiago (-4.7 percent to US$129.95) and Washington, D.C. (-4.7 percent to US$121.48), were the only two markets to report ADR decreases of less than five percent. Mexico City experienced the largest ADR decrease, falling 30.0 percent to US$100.54, followed by New York, New York, with a 27.1-percent decline to US$185.56.

San Juan experienced the smallest RevPAR decrease, down 0.6 percent to US$116.00, followed by Manitoba/Saskatchewan with a 0.8-percent decrease to US$75.13. Four markets posted RevPAR decreases of more than 30 percent: Buenos Aires (-44.5 percent to US$50.07); Mexico City (-44.1 percent to US$53.55); New York (-31.8 percent to US$154.95); and Santiago (-31.5 percent to US$67.45).

Performances of key countries in August (all monetary units in local currency):

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Asia / Pacific Region

Hotels in the Asia/Pacific region experienced decreases when reported in U.S. dollars for all three key performance metrics for August 2009, according to data compiled by STR Global.

In year-over-year measurements, the Asia/Pacific region's occupancy dropped 3.3 percent to 63.3 percent; average daily rate declined 24.7 percent to US$117.22; and revenue per available room fell 27.1 percent to US$74.18.

"With the Summer Olympics, which were held in Beijing, China, from 8-24 August 2008, China reported the largest decreases of the region," said Elizabeth Randall, managing director of STR Global. "China dropped 50.5 percent in ADR and 47.5 percent in RevPAR for the month. Japan was the only country to report increases in both ADR (+6.0 percent) and RevPAR (+1.8 percent). Among the key markets, Beijing, by far, reported the largest decreases in both ADR (-79.0 percent) and RevPAR (-79.9 percent) due to the Olympics. Hong Kong (-22 percent) and Shanghai (-15.4 percent), which hosted the equestrian and football events, reported ADR and RevPAR declines as well."

Among the key markets, Shanghai, China, reported the largest occupancy increase, jumping 12.6 percent to 49.6 percent. Seoul, South Korea (+7.2 percent to 83.2 percent) and Sydney, Australia (+1.3 percent to 78.4 percent), also reported occupancy increases for the month. Jakarta, Indonesia, posted the largest drop in occupancy, which fell 22.3 percent to 59.4 percent, followed by Bangkok, Thailand, with a 21.2-percent decrease to 56.0 percent.

Tokyo, Japan, experienced the largest ADR increase, up 20.7 percent to US$227.08. Three other markets also reported ADR increases: Hong Kong, China (+8.7 percent to US$78.70); Osaka, Japan (+6.0 percent to US$130.87); and Bali, Indonesia (+5.4 percent to US$147.72). Beijing led the ADR decreases, falling 79.0 to US$86.95, followed by Mumbai, India (-34.1 percent to US$163.55) and New Delhi, India (-30.9 percent to US$148.43).

Tokyo (+18.1 percent to US$162.23) and Osaka (+4.9 percent to US$104.97) were the only markets to post RevPAR increases. Beijing experienced the largest RevPAR decrease, falling 79.9 percent to US$49.26. Four other markets reported RevPAR decreases of more than 30 percent: New Delhi (-39.8 percent to US$86.84); Mumbai (-36.3 percent to US$89.47); Phuket, Thailand (-34.0 percent to US$41.51); and Bangkok (-32.4 percent to US$48.15).

Performances of key countries in August (all monetary units in local currency):

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Europe

The European hotel industry posted decreases in year-over-year results when reported in U.S. dollars, euros and British pounds for August 2009, according to data compiled by STR Global.

Figures for occupancy, average daily rate and revenue per available room ranged from double-digit losses to double-digit gains, depending on the market and the currency used for comparison.

"With the help of leisure demand in this summer holiday season, Italy reported a strong performance in occupancy," said Elizabeth Randall, managing director of STR Global. "Italy reported a 4.6-percent increase in occupancy for the month. Among the key markets, the Italian markets performed best in occupancy, Rome was up 17.9 percent, Florence rose 13.4 percent, and Venice increased 10.2 percent. The Spanish markets were also positively affected by leisure travel, Barcelona reported an increase of 8.2 percent in occupancy for the month."

Year-over-year August 2009 figures for Europe (U.S. dollars, euros and British pounds):




Highlights from key market performers for August include (year-over-year results, all currency figures are in euros):

• Three markets reported double-digit occupancy increases: Rome, Italy (+17.9 percent to 64.8 percent); Florence, Italy (+13.4 percent to 57.6 percent); and Venice, Italy (+10.2 percent to 68.3 percent).

• Geneva, Switzerland, was the only market to experience an occupancy decrease of more than 20 percent, falling 21.0 percent to 56.7 percent.

• Geneva posted the largest ADR increase, up 6.5 percent to EUR247.11, followed by Barcelona, Spain (+4.7 percent to EUR115.34).

• Three markets experienced ADR decreases of more than 20 percent: Moscow, Russia (-39.2 percent to EUR105.64); Munich, Germany (-31.0 percent to EUR74.12); and Budapest, Hungary (-22.6 percent to EUR59.83).

• Barcelona reported the largest RevPAR increase, up 13.3 percent to EUR88.00, followed by Rome with a 9.8-percent increase to EUR73.46.

• Four markets posted RevPAR decreases of more than 25 percent: Moscow (-44.9 percent to EUR61.84); Munich (-35.7 percent to EUR47.49); Budapest (-29.1 percent to EUR39.88); and Oslo, Norway (-26.0 percent to EUR71.14).

Performances of key countries in August (all monetary units in local currency):

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Middle East & Africa

The Middle East/Africa region suffered declines in all three key measurements in year-over-year results when reported in U.S. dollars for August 2009, according to data compiled by STR Global.

The region's occupancy dropped 18.2 percent to 59.2 percent; average daily rate decreased 3.7 percent to US$133.31; and revenue per available room decreased 21.2 percent to US$78.89.

"With Ramadan taking place 21 August-19 September 2009, the Middle East/Africa region dropped 21 percent in RevPAR for August falling for the first time behind Europe and the Americas in terms of monthly RevPAR declines," said Elizabeth Randall, managing director of STR Global. "We expect this to be a temporary position. For the year-to-date the region still showed the least declines of all four regions. The RevPAR for most Middle Eastern markets suffered from double-digit occupancy declines as business slowed down."

Highlights from key markets in the Middle East/Africa region (percentages are August 2009 vs. August 2008):

• Jeddah, Saudi Arabia, was the only market to report a single-digit occupancy decrease, falling 1.3 percent to 75.4 percent.

• Muscat, Oman, reported the largest occupancy decrease, falling 38.2 percent to 35.4 percent, followed by Riyadh, Saudi Arabia, with a 31.5-percent decrease to 38.8 percent.

• Three markets experienced double-digit ADR increases: Beirut, Lebanon (+29.6 percent to US$279.26); Jeddah (+10.6 percent to US$184.48); and Cape Town, South Africa (+10.0 percent to US$110.74).

• Dubai, United Arab Emirates, posted the largest ADR decrease, falling 21.9 percent to US$156.73. Cairo, Egypt, also reported a double-digit ADR decrease, falling 16.2 percent to US$127.03.

• Two markets reported RevPAR increases: Jeddah (+9.2 percent to US$139.13) and Beirut (+6.5 percent to US$209.07).

• Four markets experienced RevPAR declines of more than 30 percent: Muscat (-38.5 percent to US$60.50); Cairo (-36.5 percent to US$73.10); Dubai (-33.6 percent to US$100.46); and Riyadh (-30.1 percent to US$80.67).

Performances of key countries in August (all monetary units in local currency):

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