Amongst countries in Europe, six experienced RevPAR increases of at least 20.0 percent when reported in Euros: Lithuania, Croatia, Ireland, Malta, Hungary, and the United Kingdom. The Middle East/Africa region reported a 0.2-percent decrease in occupancy to 67.2 percent. The Americas region recorded positive results when reported in U.S. dollars during February 2015.
The European hotel industry posted mixed results in year-over-year metrics when reported in U.S. dollars, Euros and British pounds for February 2015, according to data compiled by STR Global.
Northern Europe continues to “dominate the region”, according to Elizabeth Winkle, managing director of STR Global. The sub-region saw double-digit growth for both ADR (+14.8 percent to 108.13 euros) and RevPAR (+18.3 percent to 76.96 euros).
“Northern Europe’s hotel performance is largely dominated by the United Kingdom”, Winkle said. “In sterling, the sub-region’s RevPAR growth was up almost 5 percent in comparison. The difference was impacted by the strength of the British pound against a weaker Euro”.
Winkle also noted “steady growth” in Western Europe, where RevPAR increased by 5.9 percent to 69.68 euros, driven by ADR (+3.4 percent to 115.15 euros) and occupancy (+2.4 percent to 60.5 percent).
Southern Europe recorded slight ADR growth of 1.1 percent to 91.76 euros, whereas Eastern Europe reported double-digit declines in both ADR (-15.6 percent to 69.20 euros) and RevPAR (-12.0 percent to 35.37 euros).
“The conflict between Russia and Ukraine, sanctions and the plummeting of gas prices are negatively impacting the region”, Winkle said.
Amongst countries in Europe, six experienced RevPAR increases of at least 20.0 percent when reported in Euros: Lithuania (+35.6 percent to 26.50 euros); Croatia (+24.3 percent to 15.99 euros); Ireland (+23.2 percent to 63.12 euros); Malta (+23.0 percent to 46.23 euros); Hungary (+20.8 percent to 31.49 euros); and the United Kingdom (+20.7 percent to 81.40 euros).
“With the Euro being at a 12-year low against a strengthening U.S. dollar, an increasing number of U.S. travellers are expected to visit Europe in 2015”, Winkle said. “However, slower economic activity and a weaker Euro may affect business travel across the region, as well as outbound travel to the U.S.”
Highlights from key market performers for February 2015 include (year-over-year comparisons, all currency in Euros):
- Five markets recorded double-digit occupancy increases, led by Vilnius, Lithuania, where occupancy was up 21.5 percent to 49.4 percent. Warsaw, Poland, followed with a 17.5-percent occupancy increase to 69.1 percent.
- Moscow, Russia, reported the largest occupancy decrease, falling 5.7 percent to 58.2 percent.
- Manchester, England, reported the largest ADR increase for the month, up 24.9 percent to 99.72 euros. Tel Aviv, Israel, followed with a 23.2-percent increase to 186.18 euros.
- Barcelona, Spain, reported the largest ADR decrease, falling 29.6 percent to EUR98.79. Moscow experienced the second-largest ADR decrease, dropping 28.4 percent to 90.29 euros.
- Four markets experienced RevPAR increases of more than 20.0 percent, including Vilnius (+38.5 percent to EUR28.10). Manchester followed with a 31.8-percent increase to 81.56 euros.
- Barcelona (-33.3 percent to 58.54 euros) and Moscow (-32.5 percent to 52.58 euros) reported the largest RevPAR decreases.
Middle East/Africa February 2015 results
The Middle East/Africa region reported positive year-over-year results in two of the three major performance metrics during February 2015 when reported in U.S. dollars. The region reported a 0.2-percent decrease in occupancy to 67.2 percent, a 1.3-percent rise in revenue per available room to US$118.64 and a 1.5-percent increase in average daily rate to US$176.64.
The moderate increase in RevPAR was driven primarily by ADR, according to Elizabeth Winkle. When looking at the three Middle East/Africa sub-regions, Northern Africa posted the top increases in all three performance metrics when reported in U.S. dollars. The sub-region experienced a 3.7-percent improvement in occupancy to 47.1 percent, a 13.8-percent increase in RevPAR to US$40.71 and a 9.7-percent rise in ADR to US$86.39.
The Middle East sub-region saw decreases in two of the three major metrics, including a 1.3-percent decline in RevPAR to US$159.61.
“Despite the Middle East showing a decrease in RevPAR, the sub-region still has the strongest figures coming out of the region”, Winkle said. “The Middle East recorded an ADR in excess of US$200.00 (US$214.56), including occupancy levels above 70 percent (74.4 percent). Whilst Northern Africa is posting strong improvement, occupancy remains below 50 percent in that sub-region”.
Amongst the key countries in the region, Egypt experienced significant increases in RevPAR (+33.3 percent to US$36.75) and ADR (+28.9 percent to US$78.00). When looking at markets within the region, Cairo, Egypt, reported the highest increases in both occupancy (+39.7 percent to 51.2 percent) and RevPAR (+43.9 percent to US$52.88).
“Egypt’s occupancy managed to increase for the eighth consecutive month”, Winkle said. “The ADR growth also has been positive, continuing the strong ADR growth since 2013. Cairo managed to increase RevPAR by an astonishing 43.9 percent; however, this is still one of the lowest values in comparison to other sub-markets in the region”.
Amongst countries, Nigeria reported decreases in all three performance metrics, including a 36.3-percent decline in RevPAR to US$100.59.
“Due to insecurity crisis issues in the region, Nigeria experienced a 22.9-percent decline in occupancy to 45.4% but is still maintaining high ADR levels exceeding US$220.00 (US$221.62)”.
Highlights among the Middle East/Africa region’s other key markets for February 2015 include (year-over-year comparisons, all currency in U.S. dollars):
- In addition to Cairo, one other market reported an occupancy increase of more than 20.0 percent: Beirut, Lebanon (+24.7 percent to 49.3 percent).
- Within Nigeria, the sub-market of Lagos reported the largest occupancy decrease, falling 21.2 percent to 50.0 percent.
- Abu Dhabi, United Arab Emirates, had the highest increase in ADR (+27.4 percent to US$187.63). Doha, Qatar, followed with a 10.8-percent increase in ADR to US$202.47.
- In addition to Cairo, two key markets reported RevPAR increases of more than 25.0 percent: Beirut (+29.7 percent to US$73.28); and Abu Dhabi (+29.2 percent to US$151.15).
- Three markets had double-digit RevPAR decreases: Lagos (-29.8 percent to US$111.15); Amman, Jordan (-19.2 percent to US$79.61); and Muscat, Oman (-10.2 percent to US$191.01).
Americas hotel results for February 2015
The Americas region recorded positive results in the three key performance metrics when reported in U.S. dollars during February 2015. Compared to February 2014, the Americas region reported a 2.8-percent increase in occupancy to 62.3 percent, a 3.9-percent increase in average daily rate to US$118.66 and a 6.8-percent increase in revenue per available room to US$73.94.
Among the key markets in the region, San Juan, Puerto Rico, reported the largest occupancy increase, rising 8.1 percent to 88.4 percent. Three other markets experienced an occupancy increase of at least 5.0 percent, including Bogotá, Colombia (+5.8 percent to 60.1 percent).
Miami, Florida, experienced the largest ADR increase, rising 11.4 percent to US$259.07. Los Angeles, California, followed with a 10.7-percent increase to US$155.07.
Los Angeles also reported the largest RevPAR growth, up 14.6 percent to US$124.27.
São Paulo, Brazil, reported the largest decrease in all three key performance metrics. The market’s occupancy fell 13.1 percent to 54.3 percent; its ADR declined 19.4 percent to US$114.70; and its RevPAR was down 30.0 percent to US$62.34.
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.
