The U.S. hotel industry’s occupancy was up 3.8 percent to 71.6 percent; its average daily rate rose 5.4 percent to US$118.49. The Middle East/Africa region reported mixed performance during August 2014. The region reported a 14.8-percent increase in occupancy to 64.3 percent, a 7.5-percent decrease in average daily rate to US$141.66 and a 6.3-percent increase in revenue per available room to US$91.09.
The U.S. hotel industry reported positive results in the three key performance metrics during August 2014, according to data from STR. Overall, in year-over-year results, the U.S. hotel industry’s occupancy was up 3.8 percent to 71.6 percent; its average daily rate rose 5.4 percent to US$118.49; and its revenue per available room increased 9.4 percent to US$84.90.
“August saw the second-highest RevPAR growth this year, which was fueled by continued strong demand increases across the board,” said Jan Freitag, senior VP of strategic development at STR. “Demand increased 4.8 percent, or 5 million rooms, from August of last year and pushed year-to-date demand up 4.3 percent.
“Supply growth continued its slow and steady increase of 1.0 percent for the month,” Freitag continued. “So far this year, U.S. hotel occupancy is 66.0 percent, the strongest performance in the last 17 years. Demand is driven by the increase in travelers on business and leisure trips as well as prolonged strength in the group segment. Group occupancy increased 2.9 percent for the month and 3.3 percent year to date. These strong demand increases put hoteliers firmly in the driver’s seat with regard to pricing power. Room rates increased 5.4 percent in August, the highest rate since January 2008.”
Among the Top 25 Markets, Atlanta, Georgia, reported the only double-digit occupancy increase, rising 11.3 percent to 70.7 percent. Oahu Island, Hawaii, fell 1.2 percent to 88.3 percent, posting the largest occupancy decrease.
Seven markets achieved double-digit ADR growth: Nashville, Tennessee (+12.7 percent to US$114.22); Seattle, Washington (+12.6 percent to US$163.83); San Francisco/San Mateo, California (+12.1 percent to US$229.10); Los Angeles/Long Beach, California (+11.1 percent to US$164.05); Denver, Colorado (+10.3 percent to US$116.90); Boston, Massachusetts (+10.0 percent to US$179.56); and Minneapolis/St. Paul, Minnesota-Wisconsin (+10.0 percent to US$113.90).
Four markets experienced RevPAR increases of more than 15.0 percent: Atlanta (+19.8 percent to US$66.13); Nashville (+17.9 percent to US$84.43); Tampa/St. Petersburg, Florida (+15.7 percent to US$62.35); and New Orleans, Louisiana (+15.2 percent to US$64.03).
Americas hotel results for August 2014
The Americas region recorded positive results in the three key performance metrics when reported in U.S. dollars during August 2014. Compared with August 2013, the Americas region reported a 3.6-percent increase in occupancy to 71.6 percent, a 5.2-percent increase in average daily rate to US$120.02 and a 9.0-percent increase in revenue per available room to US$85.98.
Among the key markets in the region, Mexico City, Mexico, reported the only double-digit occupancy increase, rising 10.1 percent to 67.9 percent. Rio de Janeiro, Brazil, fell 16.7 percent to 64.6 percent in occupancy, posting the largest decrease in that metric.
Four markets achieved ADR growth of 10.0 percent or more: San Francisco, California (+12.1 percent to US$229.10); Los Angeles, California (+11.1 percent to US$164.05); Mexico City (+10.8 percent to US$131.10); and Boston, Massachusetts (+10.0 percent to US$179.56). Santiago, Chile, reported the largest decrease in ADR (-15.2 percent to US$136.81).
Mexico City led the RevPAR increases, rising 22.1 percent to US$89.04, followed by Montreal, Canada, with a 14.4-percent increase to US$127.60. Rio de Janeiro (-17.9 percent to US$121.98) and Santiago (-14.2 percent to US$94.73) reported the largest RevPAR decreases.
Middle East/Africa August 2014 results
The Middle East/Africa region reported mixed performance during August 2014 when reported in U.S. dollars, according to data compiled by STR Global.
In August, the region reported a 14.8-percent increase in occupancy to 64.3 percent, a 7.5-percent decrease in average daily rate to US$141.66 and a 6.3-percent increase in revenue per available room to US$91.09.
“This month RevPAR grew 6.3 percent, primarily driven by occupancy growth across all sub-regions”, said Elizabeth Winkle, managing director of STR Global. “Egypt reported strong performance for the second consecutive month, due in part to low performing comparables in 2013 when the country experienced an outbreak of violence as the military moved to clear protest camps and resulted in a period of political instability. The question remains whether this uptick is the beginning of a turnaround for Egypt”.
Highlights among the Middle East/Africa region’s key markets for August 2014 include (year-over-year comparisons, all currency in U.S. dollars):
- Cairo, Egypt, jumped 180.5 percent in occupancy to 58.8 percent, reporting the largest increase in that metric, followed by Riyadh, Saudi Arabia (+35.1 percent to 48.3 percent), and Beirut, Lebanon (+23.0 percent to 59.5 percent).
- Nairobi, Kenya, fell 13.8 percent to 58.1 percent in occupancy, posting the only decrease in that metric. Nairobi also led the RevPAR decreases, falling 18.2 percent to US$81.00.
- Cape Town, South Africa (+8.7 percent to US$100.60), and Cairo (+8.6 percent to US$108.29) achieved the largest ADR growth.
- Dubai, United Arab Emirates, fell 5.6 percent to US$181.83 in ADR, experiencing the largest decrease in that metric.
- Six markets reported RevPAR growth of more than 20.0 percent: Cairo (+204.6 percent to US$63.65); Riyadh (+28.7 percent to US$103.45); Cape Town (+26.8 percent to US$61.46); Manama, Bahrain (+24.1 percent to US$110.52); Beirut (+23.2 percent to US$101.17); and Jeddah, Saudi Arabia (+21.2 percent to US$206.23).
Europe hotel results for August 2014
The European hotel industry posted mixed results in year-over-year metrics when reported in U.S. dollars, Euros and British pounds for August 2014.
“August was a strong month for Europe in terms of RevPAR growth”, said Elizabeth Winkle. “This was primarily driven by strong performance across the sub-regions. Northern and Southern Europe reported double-digit RevPAR growth for the month. Strong demand is boosting Southern Europe’s performance, while Northern Europe’s 14.8-percent increase was largely driven to currency fluctuations and FX, as most of the countries in this region do not use the euro. Western Europe, which has reported muted growth thus far in 2014, saw an uptick during August despite the rainy summer season”.
Highlights from key market performers for August 2014 include (year-over-year comparisons, all currency in Euros):
- Istanbul, Turkey, reported the largest occupancy increase, rising 18.1 percent to 77.9 percent, followed by Athens, Greece (+17.8 percent to 73.0 percent), and Madrid, Spain (+16.5 percent to 52.4 percent).
- Tel Aviv, Israel (-31.4 percent to 54.5 percent), and Moscow, Russia (-17.0 percent to 60.0 percent) reported the largest occupancy decreases.
- Geneva, Switzerland (+15.7 percent to EUR257.48), and Barcelona, Spain (+15.6 percent to EUR132.59), experienced the largest ADR growth.
- Moscow fell 18.2 percent to EUR92.68 in ADR, reporting the largest decrease in that metric.
- Four markets experienced RevPAR growth of more than 20.0 percent: Athens (+30.8 percent to EUR76.80); Geneva (+30.5 percent to EUR179.96); Madrid (+22.5 percent to EUR35.81); and Istanbul (+20.7 percent to EUR113.84).
- Tel Aviv fell 35.6 percent to EUR106.68, posting the largest decrease in that metric.
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.
