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October 25, 2012

STR Global: Global hotel results for September 2012

(London/Hendersonville, Tennessee, 25 October 2012) The Europe hotel industry posted mixed results in year-over-year metrics when reported in U.S. dollars, euros and British pounds for September 2012, according to data compiled by STR Global.

Europe hotel results for September 2012

“Increases in average room rate are still the main driver for revenue-per-available-room growth across Europe”, said Elizabeth Randall Winkle, managing director of STR Global. “Whilst demand, in terms of occupied rooms, is at historic high levels for September—with 97 million rooms occupied throughout the month and year to date—the growth in demand and occupancy has been stagnating for most of the year. September was a good month for Vienna (Austria) and Dublin (Ireland), with RevPAR increases of more than 20 percent. Both cities benefited from congresses and convention business”.

Europe - Performances of key countries in September 2012

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

  • Bratislava, Slovakia, rose 23.5 percent in occupancy to 69.9 percent, reporting the largest increase in that metric.
  • Tel Aviv, Israel, posted the largest occupancy decrease, falling 19.6 percent to 61.9 percent.
  • Three markets experienced ADR increases of 15 percent or more: Vienna (+22.7 percent to EUR129.20); Prague, Czech Republic (+15.3 percent to EUR91.03); and Reykjavik, Iceland (+15.0 percent to EUR103.81).
  • Vilnius, Lithuania (-28.9 percent to EUR51.15), and Athens, Greece (-14.8 percent to EUR96.01), reported the largest ADR decreases for the month.

Seven markets achieved RevPAR increases of more than 15 percent: Dublin (+25.9 percent to EUR88.84); Vienna (+25.3 percent to EUR112.26); Bratislava (+18.8 percent to EUR43.80); Reykjavik (+17.6 percent to EUR83.50); Berlin (+16.3 percent to EUR96.26); Prague (+15.6 percent to EUR75.93); and Manchester, United Kingdom (+15.2 percent to EUR69.07).
Vilnius fell 30.8 percent in RevPAR to EUR34.72, ending the month with the largest decrease in that metric.

MEA hotel results for September
The Middle East/Africa region reported mixed performance results in September 2012 when reported in U.S. dollars, according to data compiled by STR Global.

MEA - Performances of key countries in September 2012

The region’s occupancy increased 5.4 percent to 60.7 percent during the month, its average daily rate fell 1.7 percent to US$137.76 and its revenue per available room grew by 3.6 percent to US$83.63.

“Beirut, Lebanon, experienced two very different sides to this year”, said Elizabeth Randall Winkle, managing director of STR Global. “The first five months saw double-digit RevPAR increases and the last four months saw falling RevPAR results. September, unfortunately, reported the highest declines so far with RevPAR falling 56.5 percent compared to September 2011. Recent events and unrests will provide further challenges to the city’s residents and guests”.

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

  • Cairo, Egypt (+24.6 percent to 52.3 percent), and Muscat, Oman (+20.8 percent to 59.0 percent), reported the largest occupancy increases.
  • Amman, Jordan, reported the only double-digit ADR increase, rising 10.1 percent to US$156.07.
  • Amman (+22.3 percent to US$105.87) and Sandton, South Africa, and the surrounding areas (+18.2 percent to US$84.30), reported the largest RevPAR increases.
  • Beirut posted the largest decrease in all three key performance metrics. The markets occupancy fell 40.1 percent to 42.7 percent, its ADR was down 27.5 percent to US$166.36 and its RevPAR decreased 56.6 percent to US$71.11.

Americas results for September
The Americas region recorded positive results in the three key performance metrics when reported in U.S. dollars for September 2012, according to data compiled by STR and STR Global.

Americas - Performances of key countries in September 2012

The Americas region ended the month virtually flat with a 0.4-percent increase in occupancy to 63.4 percent, a 3.6-percent gain in average daily rate to US$109.26 and a 4.1-percent increase in revenue per available room to US$69.32.

Among the region’s key markets, San Juan, Puerto Rico, rose 9.4 percent in occupancy to 63.5 percent, reporting the largest increase in that metric, followed by Chicago, Illinois, with an 8.4-percent increase to 76.3 percent.

San Francisco posted the largest ADR increase, rising 14.3 percent to US$194.80, followed by Santiago, Chile (+13.2 percent to US$162.11), and Rio de Janeiro, Brazil (+12.7 percent to US$217.25).

Four markets achieved double-digit RevPAR increases: Chicago (+21.5 percent to US$107.93); San Francisco (+12.9 percent to US$171.12); Rio de Janeiro (+12.3 percent to US$162.47); and Mexico City, Mexico (+10.8 percent to US$87.98).

Panama City, Panama, experienced the largest decreases in all three key performance metrics. The market’s occupancy fell 22.8 percent to 43.1 percent, its ADR was down 13.4 percent to US$111.36 and its RevPAR decreased 33.1 percent to US$48.01.

Asia/Pacific results for September
Hotels in the Asia/Pacific region experienced mixed results in the three key performance metrics for September 2012 when reported in U.S. dollars, according to data compiled by STR Global.

Asia - Performances of key countries in September 2012
In year-over-year measurements, the Asia/Pacific region’s occupancy fell 1.1 percent to 67.5 percent, its average daily rate rose 3.7 percent to US$140.44 and its revenue per available room was up 2.5 percent to US$94.74.

“New Zealand hosted—and won—the Rugby World Cup last year, which took place 9 September to 23 October 2011, explaining the more than 30-percent decline in ADR and RevPAR results during September”, said Elizabeth Randall Winkle, managing director of STR Global. “Ignoring last year’s strong event-driving performance, RevPAR for the January to September period year to date is greater than the last peak in 2008. Year-to-September 2012 achieved a RevPAR of NZD93.68 compared to NZD92.30 for YTD 2008”.

“Jakarta, Indonesia, continued its double-digit ADR growth in local currency for the 15th consecutive month. ADR growth benefited from strong demand increases, as September this year and last year saw the highest growth in monthly demand in the last 21 months”, she said.

Highlights from key market performers in September 2012 in local currency (year-over-year comparisons):

  • Jakarta reported the largest occupancy increase, rising 13.9 percent to 80.0 percent, followed by Hanoi, Vietnam, with a 13.3 percent increase to 64.3 percent.
  • Taipei, Taiwan, fell 10.1 percent in occupancy to 63.7 percent, posting the largest decrease in that metric.
  • Jakarta achieved the largest ADR increase, rising 23.1 percent to IDR1,001,527.24, followed by Tokyo, Japan, with a 11.4 percent increase to JPY14,526.98.
  • Auckland, New Zealand, experienced the largest ADR (-40.6 percent to NZD133.08) and RevPAR (-42.3 percent to NZD93.36) decreases for the month.
  • Jakarta rose 40.1 percent in RevPAR to IDR801,622.64, reporting the largest increase in that metric.

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

  • Three markets experienced double-digit ADR increases: Jakarta (+14.6 percent to US$104.36); Taipei (+12.9 percent to US$191.31); and Seoul, South Korea (+10.3 percent to US$189.90).
  • Auckland reported the largest ADR decrease, falling 36.5 percent to US$110.44. The market also reported the largest RevPAR decrease, down 38.3 percent to US$77.48.
  • Four markets achieved RevPAR increases of more than 10 percent: Jakarta (+30.5 percent to US$83.53); Hanoi (+13.4 percent to US$67.97); Melbourne, Australia (+12.9 percent to US$140.85); and Tokyo (+10.6 percent to US$156.15).

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