Latest News
HomeRegional NewsCentral & South AmericaSTR: Americas, US, and EME hotel performance for February 2014
Hospitality

STR: Americas, US, and EME hotel performance for February 2014

The U.S. hotel industry’s occupancy was up 3.3 percent to 60.3 percent. Its average daily rate rose 3.9 percent to US$111.94, and revenue per available room increased 7.3 percent to US$67.49. The European hotel industry posted mixed results in year-over-year metrics when reported in U.S. dollars, Euros and British pounds for January 2014. Athens, Greece, rose 23.2 percent in occupancy to 52.1 percent, reporting the largest increase in that metric.

The U.S. hotel industry reported positive results in the three key performance metrics during February 2014, according to data from STR. Overall, the U.S. hotel industry’s occupancy was up 3.3 percent to 60.3 percent. Its average daily rate rose 3.9 percent to US$111.94, and revenue per available room increased 7.3 percent to US$67.49.

“February results were healthy,” said Jan Freitag, senior VP of strategic development at STR. “RevPAR increased 7.3 percent, driven primarily by a 3.9-percent increase in ADR. Last year in February ADR increased 4.5 percent. This year growth was lower, but nonetheless stronger than in January (+3.2 percent). Occupancy for the month was just over 60 percent, so hotels are reporting stronger occupancies again, and this goes hand in hand with some pricing power.

“Demand grew at a healthy clip of 4.5 percent, well above last year’s 2.4 percent growth, and that easy comparable probably contributed to the strong increase,” Freitag continued. “Year-to-date demand is up 3.9 percent, well above last year (+2.2 percent) and well above our expected 2014 demand growth number (+2.3 percent), so expect demand growth to slow as we hit summer.”

Among the Top 25 Markets, St. Louis, Missouri-Illinois, reported the only double-digit occupancy increase, rising 10.1 percent to 56.4 percent. Atlanta, Georgia, followed with a 9.3-percent increase to 67.2 percent. New York, New York, fell 3.1 percent in occupancy to 73.9 percent, posting the largest decrease in that metric.

San Francisco/San Mateo, California (+14.2 percent to US$186.92), and Nashville, Tennessee (+11.6 percent to US$109.22), achieved the largest ADR increases for the month.

Three markets reported RevPAR increases of more than 15 percent: San Francisco/San Mateo (+19.7 percent to US$149.30); Nashville (+18.7 percent to US$72.91); and St. Louis (+16.9 percent to US$50.45).

New Orleans, Louisiana, reported the largest decrease in both ADR (-16.7 percent to US$159.73) and RevPAR (18.9 percent to US$110.60).

The Americas region recorded positive results in the three key performance metrics when reported in U.S. dollars during February 2014. Compared to February 2013, the Americas region reported a 3.2-percent increase in occupancy to 60.6 percent, a 3.1-percent increase in average daily rate to US$114.90 and a 6.5-percent increase in revenue per available room to US$69.58.

Among the key markets in the region, Sao Paulo, Brazil, rose 14.9 percent in occupancy to 64.1 percent, reporting the largest increase in that metric. Panama City, Panama, reported the only double-digit occupancy decrease, falling 10.7 percent to 57.6 percent.

San Francisco, California, achieved the only double-digit growth in both ADR (+14.2 percent to US$186.92) and RevPAR (+19.7 percent to US$149.30).

Rio de Janeiro, Brazil, experienced the largest decreases in both ADR (-25.9 percent to US$208.35) and RevPAR (-26.5 percent to US$158.15).

The European hotel industry posted mixed results in year-over-year metrics when reported in U.S. dollars, Euros and British pounds for January 2014.

“Last year we saw occupancy growth and rate declines in Europe”, said Elizabeth Winkle, managing director of STR Global. “Year to date, we are seeing positive occupancy and average-daily-rate growth in the region. Northern Europe performed well this month compared to the other sub-regions in both occupancy and rate. Denmark, Estonia, Ireland and the United Kingdom are driving the positive performance in the sub-region. We expect 2014 to be a year of growth and it is positive to see rate growth in the early months of the year”.

Highlights from key market performers for February 2014 include (year-over-year comparisons, all currency in Euros):

  • Athens, Greece, rose 23.2 percent in occupancy to 52.1 percent, reporting the largest increase in that metric. Amsterdam, Netherlands, followed with a 19.5-percent increase to 67.9 percent.
  • Warsaw, Poland, fell 5.1 percent in occupancy to 60.3 percent, posting the largest decrease in that metric.
  • Five markets achieved double-digit ADR gains: Copenhagen, Denmark (+15.7 percent to EUR112.69); Amsterdam (+14.7 percent to EUR112.31); Manchester, England (+13.2 percent to EUR80.12); Tallinn, Estonia (+11.4 percent to EUR71.36); and London, England (+10.2 percent to EUR153.78).
  • Amsterdam jumped 37.1 percent in RevPAR to EUR76.27, reporting the largest increase in that metric, followed by Athens (+26.9 percent to EUR44.72) and Copenhagen (+22.2 percent to EUR64.40).
  • Moscow, Russia, experienced the largest decrease in both ADR (-20.4 percent to EUR127.97) and RevPAR (-22.1 percent to EUR81.53).
  • The Middle East/Africa region reported positive performance results during February 2014 when reported in U.S. dollars. The region reported a 1.3-percent increase in occupancy to 67.4 percent, a 2.7-percent increase in average daily rate to US$177.42 and a 4.0-percent increase in revenue per available room to US$119.55.

“The Middle East still is driving performance in the region”, said Elizabeth Winkle. “Jordan, Oman and Saudi Arabia are all posting both occupancy and ADR growth (in local currency). Jordan and Bahrain are reporting the largest occupancy growth.  Dubai is still reporting high occupancy; the new supply coming in is being absorbed and we are seeing double-digit rate growth”.

Highlights among the Middle East/Africa region’s key markets for February 2014 include (year-over-year comparisons, all currency in U.S. dollars):

  • Three markets reported double-digit occupancy growth: Manama, Bahrain (+39.0 percent to 63.2 percent); Doha, Qatar (+13.9 percent to 76.9 percent); and Amman, Jordan (+10.2 percent to 59.3 percent).
  • Beirut, Lebanon, fell 25.2 percent in occupancy to 39.4 percent, posting the largest decrease in that metric. The market also reported the largest decrease in RevPAR, falling 31.4 percent to US$55.61.
  • Dubai, United Arab Emirates, achieved the largest ADR increase, rising 9.7 percent to US$286.99.
  • Abu Dhabi, United Arab Emirates (-22.9 percent to US$148.72) reported the largest ADR decrease in February.
  • Manama jumped 37.7 percent in RevPAR to US$120.11, experiencing the largest increase in that metric, followed by Amman with a 15.2-percent increase to US$97.16.

 

 

Photo caption: Athens, Greece.

 

Co-Founder & Chief Editor - TravelDailyNews Media Network | Website | + Posts

Vicky is the co-founder of TravelDailyNews Media Network where she is the Editor-in Chief. She is also responsible for the daily operation and the financial policy. She holds a Bachelor's degree in Tourism Business Administration from the Technical University of Athens and a Master in Business Administration (MBA) from the University of Wales.

She has many years of both academic and industrial experience within the travel industry. She has written/edited numerous articles in various tourism magazines.

28/03/2024
27/03/2024
26/03/2024
25/03/2024
22/03/2024
21/03/2024