Overall, the U.S. hotel industry’s occupancy was up 4.9 percent to 67.0 percent. In Europe, Athens, Greece, rose 36.6 percent in occupancy to 83.0 percent, reporting the largest increase in that metric. The Middle East/Africa region reported a 1.9-percent increase in occupancy to 63.5 percent.
The U.S. hotel industry reported positive results in the three key performance metrics during May 2014, according to data from STR. Overall, the U.S. hotel industry’s occupancy was up 4.9 percent to 67.0 percent; its average daily rate rose 4.8 percent to US$115.35; and its revenue per available room increased 10.0 percent to US$77.27.
“U.S. hotels reported the highest RevPAR on record this month,” said Jan Freitag, senior VP of strategic development at STR. “Demand this month grew 5.9 percent; we haven’t seen demand increases like this since September 2011. With supply growth still muted (+0.9 percent), absolute occupancy increased 4.9 percent to 67.0 percent. While the industry continues to beat last year’s occupancies, it is doing so at an accelerated pace. Group demand increased 10.4 percent in May, and we expect this positive momentum to continue through the summer.
“Similar to April, higher-end hotels, including the Luxury, Upper Upscale and Upscale segments, reported occupancies of more than 75.0 percent in May,” Freitag continued. “The Economy segment surprisingly reported the highest RevPAR growth among the segments, rising 10.6 percent, driven by a 5.4-percent occupancy increase.”
Among the Top 25 Markets, Atlanta, Georgia, reported the largest occupancy increase, rising 12.6 percent to 70.2 percent. Tampa/St. Petersburg, Florida, followed with an 8.8-percent increase to 68.4 percent.
Three markets saw double-digit ADR growth: Nashville, Tennessee (+13.4 percent to US$115.74); San Francisco/San Mateo, California (+13.4 percent to US$203.18); and Houston, Texas (+10.0 percent to US$124.77). Philadelphia, Pennsylvania-New Jersey (-3.9 percent to US$128.11), and Dallas, Texas (-0.2 percent to US$92.35), reported the only ADR decreases for the month.
Five markets experienced RevPAR increases of 15.0 percent or more: Atlanta (+21.2 percent to US$63.11); Nashville (+17.1 percent to US$86.51); Tampa/St. Petersburg (+17.1 percent to US$72.60); Houston (+15.8 percent to US$94.48); and Boston, Massachusetts (+15.0 percent to US$154.92). Philadelphia fell 3.6 percent in RevPAR to US$91.78, posting the only decrease in that metric.
Americas hotel results for May 2014
The Americas region recorded positive results in the three key performance metrics when reported in U.S. dollars during May 2014, according to data compiled by STR and STR Global.
Compared to May 2013, the Americas region reported a 4.9-percent increase in occupancy to 66.9 percent, a 4.5-percent increase in average daily rate to US$116.90 and a 9.6-percent increase in revenue per available room to US$78.18.
Among the key markets in the region, Montreal, Canada (+9.5 percent to 78.4 percent), and Sao Paulo, Brazil (+9.2 percent to 74.3 percent), reported the largest occupancy increases for the month.
San Francisco, California, achieved the only double-digit ADR increase, up 13.4 percent to US$203.18. Boston, Massachusetts, experienced the largest RevPAR increase in May (+15.0 percent to US$154.92), followed by Miami, Florida (+14.3 percent to US$134.99), and San Francisco (+14.3 percent to US$173.88).
Panama City, Panama, reported the largest decrease in all three performance metrics. The market’s occupancy fell 10.4 percent to 46.4 percent; its ADR decreased 7.2 percent to US$102.80; and RevPAR fell 16.8 percent to US$47.65.
Europe hotel results for May 2014
The European hotel industry posted mixed results in year-over-year metrics when reported in U.S. dollars, Euros and British pounds for May 2014, according to data compiled by STR Global.
“Greece reported one of the highest occupancy growth rates, increasing 31.0 percent to 70.3 percent in May”, said Elizabeth Winkle, managing director of STR Global. “Year to date, Greece’s occupancy increased 20.2 percent, one of the highest increases for the region. It is nice to see healthy increases from Greece as there is a return of demand in the country.
“Portugal also reported strong increases in May, as Lisbon hosted the UEFA Champions League Final on 24 May. Lisbon’s ADR grew by 14.8 percent to EUR87.78. In May 2013, London hosted the Champions League Final, which resulted in decreases in both occupancy (-1.8 percent to 84.5 percent) and RevPAR (-2.1 percent to GBP119.27) for May 2014. London’s supply increased 1.8 percent, while demand remained flat compared with last year”.
Highlights from key market performers for May 2014 include (year-over-year comparisons, all currency in Euros):
- Athens, Greece, rose 36.6 percent in occupancy to 83.0 percent, reporting the largest increase in that metric. Bucharest, Romania, followed with a 24.5-percent increase to 72.3 percent.
- Istanbul, Turkey, fell 12.3 percent in occupancy to 71.3 percent, posting the largest decrease in that metric.
- Four markets grew 15.0 percent or more in ADR: Tallinn, Estonia (+20.5 percent to EUR87.96); Lisbon, Portugal (+16.0 percent to EUR107.46); Brussels, Belgium (+15.8 percent to EUR125.38); and Manchester, England (+15.0 percent to EUR84.94).
- Six markets experienced RevPAR increases of 20.0 percent or more: Athens (+46.2 percent to EUR93.52); Tallinn (+28.2 percent to EUR66.18); Lisbon (+25.4 percent to EUR93.40); Bucharest (+22.6 percent to EUR53.06); Brussels (+21.7 percent to EUR95.36); and Manchester (+20.0 percent to EUR66.31).
- Moscow, Russia, reported the largest decrease in ADR (-13.9 percent to EUR122.14), while Istanbul experienced the largest RevPAR decline (-24.2 percent to EUR109.58).
Middle East/Africa May 2014 results
The Middle East/Africa region reported positive performance results during April 2014 when reported in U.S. dollars, according to data compiled by STR Global.
The region reported a 1.9-percent increase in occupancy to 63.5 percent, a 3.1-percent increase in average daily rate to US$154.14 and a 5.1-percent increase in revenue per available room to US$97.94.
“Bahrain is currently showing the highest growth in terms of occupancy (+27.8 percent), though the country is coming from a low base in 2013”, said Elizabeth Winkle. “Despite the double-digit growth rate, Bahrain’s occupancy is at 57.2 percent. Kuwait is leading the ADR increases in the region, as the country rose 12.8 percent to KWD72.18. Egypt is still seeing occupancy levels below 50.0 percent, while rate growth continues to be muted. Kenya also is reporting negative occupancy and RevPAR growth due to the recent events”.
“The Middle East has the fastest growing pipeline in the world, with 99,199 rooms Under Contract as of May”, Winkle continued. “The United Arab Emirates and Saudi Arabia have emerged with two of the most robust pipelines in the Middle East, as these two countries combined make up 70.0 percent of the rooms in the region’s pipeline”.
Highlights among the Middle East/Africa region’s key markets for May 2014 include (year-over-year comparisons, all currency in U.S. dollars):
- Manama, Bahrain, rose 29.7 percent in occupancy to 56.9 percent, achieving the largest increase in that metric. Doha, Qatar, followed with a 13.0-percent increase to 75.8 percent.
- Lagos, Nigeria, fell 16.1 percent to 58.0 percent in occupancy, posting the largest decrease in that metric.
- Amman, Jordan, achieved the only double-digit ADR growth in May, up 13.8 percent to US$184.77.
- Riyadh, Saudi Arabia, fell 6.1 percent in ADR to US$241.65, experiencing the largest decrease in that metric.
- Manama (+28.8 percent to US$112.86) and Amman (+21.1 percent to US$136.92) led the RevPAR increases.
- Lagos decreased 20.9 percent in RevPAR to US$150.74, reporting the largest decrease in that metric.
Photo caption: In Europe,Athens, Greece, rose 36.6 percent in occupancy to 83.0 percent, reporting the largest increase in that metric.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
