The Americas saw a year-on-year RevPAR increase in July while Asia Pacific and Middle East/Africa saw RevPAR declines, according to new data from STR and STR Global.
The Americas region reported a 0.5% increase in occupancy to 70.0%, a 3.3% gain in average daily rate to US$109.61 and a 3.8% increase in revenue per available room to US$76.74.
Among the region’s key markets, Mexico City, Mexico, rose 6.3% in occupancy to 63.9%, reporting the largest increase in that metric. Rio de Janeiro, Brazil, followed with a 3.1% increase in occupancy to 75.2%. Buenos Aires, Argentina, fell 20.5% in occupancy to 55.9%, posting the largest decrease in that metric, followed by Montreal, down 12.7% to 68.2% and Panama City, down 10.4% to 49.2%.
San Francisco experienced the largest ADR increase, rising 11.9% to US$176.52, followed by Boston with a 10.8% increase to US$160.75. Buenos Aires, Argentina down 12.6% to US$129.28 and São Paulo, down 11.7% to US$126.41, posted the largest ADR decreases for the month.
San Francisco, up 11.5% to US$154.50 and Boston, up 11.2% to US$133.23 achieved the highest RevPAR increases for the month. Three markets experienced RevPAR decreases of more than 15%: Buenos Aires, down 30.5% to US$72.32, Montreal, down 20.3% to US$88.12 and Panama City, down 16.7% to US$58.35).
Europe
The European hotel industry posted mixed results in year-over-year metrics for July.
“European hotels reported a solid increase in ADR for the month of July when measured in euro terms, up 7%. However, this is coupled with the third consecutive month of small occupancy declines,” said Elizabeth Randall Winkle, managing director of STR Global. “With the Olympic coverage taking over a bit from the ongoing troubles in the eurozone, London hoteliers reported weaker occupancy performances in June and the non-Olympic days in July compared to last year. We receive monthly results from more than 422 hotels in London and results for July reflect that the first four days of the Olympics during July could not offset the weaker occupancy in the early part of the month. London reported 80.7% occupancy, a decline of 11.1% and £166.34 (US$261.75) average room rate, up 8.8% compared to July 2011. This occupancy result for July 2012 still puts London into the top eight out of 31 European capital or gateway cities. Given the most of the Olympic events occurred in August, a bigger impact, especially in ADR terms, should be visible in London’s August results.”
Highlights from key market performers for July 2012 include (year-over-year comparisons, all currency in euros):
- Bratislava, Slovakia, reported the largest occupancy increase, rising 19.5% to 51.2%, followed by Vilnius, Lithuania, with a 10.6% increase to 78.7%
- Two markets experienced double-digit occupancy decreases: London, down 12.1% to 80.7% and Istanbul, down 10.6% to 72.7%
- Five markets achieved ADR increases of 15% or more: Reykjavik, Iceland, up 26.1% to €129.63 (US$161.36), Tel Aviv, Israel, up 22.4% to €205.15 (US$255.37), London, up 22.1% to €212.91 (US$265.03), Manchester, England, up 18.5% to €80.76 (US$100.53) and Istanbul, up 15.0% to €176.84 (US$220.13)
- Geneva, down 15.1% to €242.25 (US$301.55) and Zurich down 11.5% to €183.69 (US$228.66), ended the month with the largest ADR decreases
- Reykjavik grew 32.2% in RevPAR to €119.54 (US$148.80), achieving the largest increase in that metric
- Geneva fell 21.5% in RevPAR to €160.65 (US$199.98), reporting the only RevPAR decrease of more than 20%
Asia Pacific
In year-over-year measurements, the Asia Pacific region’s occupancy decreased 2.2% to 68.3%, its average daily rate ended the month virtually flat with a 0.2% increase to US$136.06 and its revenue per available room was down 2.1% to US$92.86.
“Thailand and French Polynesia were the two out of 15 countries tracked on our Asia/Pacific Hotel Review that reported double-digit RevPAR increases for July 2012 compared to July last year,” said Winkle. “Thailand had its best July occupancy performance since 2006, with 67.8% for July 2012, just beating its July 2006 performance of 67.1%. Its ADR at 3,062 baht (US$96.94) for the month is still below its July 2008 peak of 3,315 baht (US$104.95). We have seen demand for hotel accommodation across the country increasing for the seven months this year, up 10.3%, resulting as well from the increase in international visitors, especially from China, as reported by the Tourism Authority of Thailand. French Polynesia also reported its best July occupancy since July 2006 achieving 70.4% for July 2012, beating the last peak of July 2007 at 68.1%. After the heavy occupancy declines seen in 2009 due to the global economic downturn, the islands had been reporting monthly occupancy and demand increases for the majority of months since 2010. A reduction in room inventory in the same period has helped to boost performances. Looking at the average room rate, July 2012 was its best performance of a July in the last six years.”
Highlights from key market performers in July 2012 in local currency (year-over-year comparisons):
- Hanoi, Vietnam, rose 23.7% in occupancy to 64.8%, posting the largest increase in that metric
- Jakarta, Indonesia, down 10.3% to 73.1% and Kuala Lumpur, Malaysia down 10% to 78.4% reported the largest occupancy decreases for the month
- Jakarta achieved the largest ADR increase, rising 21.6% to 954,878.37 (US$100.04), followed by Taipei, Taiwan, up 18.6% to T$5,554.87 (US$184.17), and Phuket, Thailand, up 16.9% to 3,155.18 baht (US$99.89)
- Three markets experienced RevPAR increases of more than 15%: Phuket, up 26.2% to 2,309.32 baht (US$73.11); Hanoi, up 25.0% to 1,432,239.53 d?ng (US$68.38); and Tokyo, up 19.9% to ¥11,375.45 (US$143.69)
- New Delhi fell 14.4% in RevPAR to Rs3,383.47 (US$ 60.61), reporting the largest decrease in that metric
Highlights from key market performers for July 2012 in U.S. dollars (year-over-year comparisons):
- Taipei rose 14.0% in ADR to US$184.71, reporting the largest increase in that metric. Beijing followed with a 13.1% increase to US$107.26
- Two markets experienced ADR decreases of more than 20%: New Delhi, down 27.3% to US$111.72 and Mumbai, down 22.1% to US$132.94
- Three markets achieved RevPAR increases of more than 15%: Hanoi, up 22.3% to US$67.92, Phuket, up 20.9% to US$73.08 and Tokyo, up 17.6% to US$145.27
- New Delhi, down 30.7% to US$61.08 and Mumbai, down 19.6% to US$74.15 posted the largest RevPAR decreases for the month
Middle/East Africa
The Middle East/Africa region’s occupancy decreased 4.9% to 56.7% during the month, its average daily rate increased 2.1% to US$140.67 and its revenue per available room fell 3.0% to US$79.72.
“Ramadan, which took place 20 July to 19 August, impacted the results across the Middle East,” said Winkle. “Ramadan took place during August last year. The holy cities of Makkah and Medina reported RevPAR increases of 90.9% and 33.0%, respectively. When measured in local currency, Beirut, reported sharp RevPAR declines 39.2% for July 2012 compared to last year as the Syrian crisis has deterred travellers to neighboring Lebanon. July is the first month that average room rates and occupancy declined by around 20%.”
Highlights among the region’s key markets for July 2012 include (year-over-year comparisons, all currency in U.S. dollars):
- Sandton, South Africa, and the surrounding areas, reported the largest occupancy increase, rising 10.3% to 61.1%
- Jeddah, Saudi Arabia, up 7.9% to US$228.98 and Amman, Jordan, up 7% to US$156.58 achieved the largest ADR increases for the month
- Jeddah was the only key market to report a RevPAR increase, rising 12.7% to US$191.53
- Beirut ended the month with the largest decreases in all three key performance metrics — occupancy fell 19.3% to 53.9%, its ADR was down 25.2% to US$195.78 and its RevPAR decreased 39.6% to US$105.48