STR Global: Americas, EMEA hotel results for January 2015

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LONDON – The European hotel industry posted mixed results in year-over-year metrics when reported in U.S. dollars, Euros and British pounds for January 2015, according to data compiled by STR Global.

“Northern Europe carried on its performance as it finished last year as the sub region driving the most growth, predominantly from rate, as January ADR growth was in double digits at 12.3 percent in Euros”, said Elizabeth Winkle, managing director of STR Global. “Eastern Europe has sustained weaker hotel performance into 2015, with declines of 7.6 percent in RevPAR. Despite the 5.0-percent occupancy growth, overall performance dropped due to rates.

“From an occupancy perspective, Southern Europe has had continued growth (5.3 percent), driven by recovery from countries such as Greece, Malta, Portugal and Spain”, Winkle continued. “Western Europe reported a positive performance, achieving RevPAR growth of 4.0 percent. The sub region has had the highest RevPAR in Europe at 63.45 euros”.

Highlights from key market performers for January 2015 include (year-over-year comparisons, all currency in Euros):

  • Lisbon, Portugal, recorded the highest occupancy increase (+16.9 percent to 49.8 percent). Budapest, Hungary, followed with a 15.1-percent increase to 47.8 percent.
  • Tel Aviv, Israel, reported the largest occupancy decrease, falling 8.9 percent to 57.0 percent.
  • Tel Aviv reported the largest ADR increase (+21.1 percent to 182.13 euros). Manchester, England, followed with a 19.9-percent increase to 88.04 euros.
  • Moscow, Russia, reported the largest ADR decrease, falling 39.0 percent to 68.75 euros. Saint Petersburg, Russia, followed with a 31.3-percent decrease to 42.54 euros.
  • Budapest experienced the largest RevPAR increase during the month (+31.0 percent to 31.40 euros).
  • Moscow reported the largest RevPAR decrease, down 39.9 percent to 31.03 euros.

“The United Kingdom has had an incredible start to 2015, achieving the strongest performance for the month of January in six years, with the highest actuals in all three key performance measurements in local currency terms. U.K. RevPAR increased by 9.4 percent to GBP48.74, driven slightly more by average daily rate (+4.9 percent), whilst occupancy also grew by a respectable 4.3 percent to 62.9 percent”, Winkle said. “This was also the case for London, where ADR (3.0 percent) drove RevPAR to increase (5.1 percent) to GBP85.98”.

Middle East/Africa January 2015 results
The Middle East/Africa region reported positive year-over-year performance results in two of the three major metrics during January 2015 when reported in U.S. dollars, according to data compiled by STR Global.

The region reported a 1.2-percent increase in occupancy to 62.8 percent, a 1.0-percent rise in revenue per available room to US$115.61 and a 0.2-percent decrease in average daily rate to US$184.08.

When looking at the region’s three sub-regions, Northern Africa saw double-digit growth in RevPAR and occupancy, increasing by 24.2 percent and 14.8 percent, respectively, according to the data.

Dubai, United Arab Emirates, posted declines in all three performance metrics. The drops were in large part because of the exceptionally strong comparable to January 2014, which was the strongest January performance during the last 10 years, according to Elizabeth Winkle, STR Global’s managing director.

“Despite continuous strong supply growth for Dubai (+6.8 percent), occupancy levels managed to stay above 85 percent for January 2015; however, that was three points lower than January 2014”, Winkle said. “Demand (+3.7 percent) continued to grow in Dubai, and with the exception of the months of Ramadan, demand growth for the emirate has been positive in every month for the past five years.

“However, the increasing competition continues to put pressure on rate, and there are downside risks that this will continue throughout 2015”, she added.

Despite the declines in occupancy (-2.5 percent), ADR (-4.0 percent) and RevPAR (-6.4 percent), Dubai still achieved one of the highest RevPAR actuals (US$242.85) in the Middle East, Winkle said.

South Africa experienced balanced supply growth (+2.2 percent) and demand growth (+2.3 percent), but the sub-region of Southern Africa suffered setbacks in occupancy (-5.0 percent), ADR (-5.4 percent) and RevPAR (-10.1 percent).

“Many countries in the Southern Africa sub-region saw drops from an occupancy perspective but have managed to hold onto rate in the first month of 2015”, Winkle said. “Zimbabwe had an occupancy decline of 6.7 percent, however, it achieved an ADR increase of 4.3 percent”.

Highlights among the Middle East/Africa region’s other key markets for January 2015 include (year-over-year comparisons, all currency in U.S. dollars):

  • Three key markets reported double-digit occupancy increases: Cairo, Egypt (+65.5 percent to 54.8 percent); Beirut, Lebanon (+34.9 percent to 47.1 percent); and Doha, Qatar (+11.8 percent to 83.2 percent).
  • Amman, Jordan, reported the largest occupancy decrease, falling 20.8 percent to 42.5 percent.
  • Doha had the highest increase in ADR (+11.4 percent to US$207.25). Beirut followed with a 9.6-percent increase in ADR to US$166.57.
  • Lagos, Nigeria (-11.6 percent to US$215.02) experienced the largest ADR decline among the key markets.
  • Three key markets reported double-digit RevPAR increases: Cairo (+73.0 percent to US$56.84); Beirut (+47.8 percent to US$78.51); and Doha (+24.5 percent to US$172.34).
  • Three key markets had double-digit RevPAR decreases: Amman (-21.1 percent to US$69.35); Lagos (-14.7 percent to US$109.23); and Nairobi, Kenya (-12.9 percent to US$59.03).

Americas hotel results for January 2015
The Americas region recorded positive results in the three key performance metrics when reported in U.S. dollars during January 2015.

Compared to January 2014, the Americas region reported a 3.7-percent increase in occupancy to 54.5 percent, a 3.5-percent increase in average daily rate to US$115.48 and a 7.3-percent increase in revenue per available room to US$62.99.

Among the key markets in the region, Buenos Aires, Argentina, reported the largest occupancy increase, rising 8.3 percent to 59.7 percent. Vancouver, Canada, followed with a 7.2-percent increase to 57.2 percent.

San Francisco, California, experienced the largest ADR increase, rising 16.9 percent to US$218.96. The market also reported the largest RevPAR growth, up 20.3 percent to US$160.37.

Bogota, Colombia, reported the largest decrease in all three key performance metrics. The market’s occupancy fell 8.7 percent to 40.6 percent in occupancy; its ADR declined 12.6 percent to US$112.71; and its RevPAR was down 20.2 percent to US$45.81.

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