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STR: Americas, US, EMEA, hotel performance for September 2014

The U.S. hotel industry’s occupancy was up 3.9 percent to 65.7 percent; its average daily rate rose 5.3 percent to US$117.17; and its revenue per available room increased 9.5 percent to US$76.97.

HENDERSONVILLE, TENNESSEE – The U.S. hotel industry reported positive results in the three key performance metrics during September 2014, according to data from STR, Inc.

Overall, in year-over-year results, the U.S. hotel industry’s occupancy was up 3.9 percent to 65.7 percent; its average daily rate rose 5.3 percent to US$117.17; and its revenue per available room increased 9.5 percent to US$76.97.

“September proved to be even stronger than August, with overall year-over-year RevPAR growth the second-highest of the year,” said Carter Wilson, director of STR Analytics, STR’s sister company. “Supply nudged down to just under 1 percent, while nearly 98 million roomnights were sold in September, the highest-ever recorded in that month.

“Demand growth in September was fueled by group business, which was up 8.6 percent for the month, the second-highest increase of the year. While transient demand was flat, transient rates surged 6.9 percent. Overall, however, group demand dominated in September, with a total monthly RevPAR increase of 13.3 percent compared to last year.”

Among the Top 25 Markets, 16 of the top markets recorded double-digit RevPAR growth in September. New Orleans, Louisiana, rose 23.8 percent to US$87.64, reporting the largest increase in that metric, followed by Detroit, Michigan (+21.5 percent to US$65.06), Seattle, Washington (+20.4 percent to US$127.42), and Atlanta, Georgia (+19.3 percent to US$65.25).  None of the top markets experienced a RevPAR decrease during September.

Four markets reported double-digit ADR increases: Seattle (+14.0 percent to US$150.71); Boston, Massachusetts (+12.1 percent to US$201.84); Nashville, Tennessee (+12.1 percent to US$119.50); and Denver, Colorado (+11.9 percent to US$121.33).

Norfolk/Virginia Beach, Virginia, fell 0.6 percent to US$85.16, posting the only ADR decrease.

New Orleans increased 13.5 percent in occupancy to 66.5 percent, achieving the largest increase in that metric. Detroit followed with an 11.7-percent increase to 71.0 percent. Minneapolis/St. Paul, Minnesota-Wisconsin, fell 2.6 percent to 71.7 percent in occupancy, experiencing the only decrease in that metric.

Year-to-date 2014 in year-over-year changes, the U.S. increased 3.5 percent to 65.9 percent in occupancy; its ADR was up 4.5 percent to US$115.49; and its RevPAR rose 8.2 percent to US$76.14.

“All in all, year-to-date RevPAR was up 8.2 percent compared to last year, and on a running three-month basis we are experiencing occupancy levels not seen since the peak occupancy periods of 1995 and 1996,” Wilson commented. “The year continues to unfold at record levels, and rate is now pacing at its fastest year-to-date growth since 2007.”

Americas hotel results for September 2014
The Americas region recorded positive results in the three key performance metrics when reported in U.S. dollars during September 2014. Compared with September 2013, the Americas region reported a 3.8-percent increase in occupancy to 65.7 percent, a 4.3-percent increase in average daily rate to US$117.86 and an 8.3-percent increase in revenue per available room to US$77.43.

Among the key markets in the region, six reported double-digit RevPAR increases: Boston, Massachusetts (+17.3 percent to US$171.71); Chicago, Illinois (+16.9 percent to US$121.07); Washington, D.C. (+16.3 percent to US$113.32); San Francisco, California (+10.5 percent to US$214.20); Mexico City, Mexico (+10.5 percent to US$91.13); and Miami, Florida (+10.1 percent to US$92.38). Buenos Aires, Argentina (-19.3 percent to US$76.42), and Rio de Janeiro, Brazil (-14.7 percent to US$134.58) experienced the largest RevPAR decreases.

Boston jumped 12.1 percent in ADR to US$201.84, reporting the only double-digit increase in that metric. Buenos Aires fell 13.5 percent to US$126.58 in ADR, posting the largest decrease in that metric.

Washington, D.C. (+9.8 percent to 72.3 percent), and Montreal, Canada (+8.0 percent to 77.1 percent), achieved the largest occupancy growth in September. Buenos Aires experienced the largest occupancy decrease, falling 6.7 percent to 60.4 percent.

Year-to-date 2014, the Americas region’s occupancy rose 3.3 percent to 65.8 percent; its ADR was up 4.1 percent to US$117.55; and its RevPAR increased 7.6 percent to US$77.40.

Europe hotel results for September 2014
The European hotel industry posted mixed results in year-over-year metrics when reported in U.S. dollars, Euros and British pounds for September 2014. “In September, Europe reported some pickup in rate, primarily in Northern Europe, driven by strong performance in the U.K and Ireland,” said Elizabeth Winkle, managing director of STR Global. “Across Europe, several countries achieved occupancy levels of 80 percent or more. September tends to be a busy month for conference and congress travel. Madrid hosted ESMO Congress, and as a result, the city’s RevPAR grew by 46.7 percent for the month, when measured in Euros”.

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

  • Athens, Greece, reported the largest occupancy increase, rising 17.8 percent to 88.6 percent, followed by Madrid, Spain (+13.1 percent to 79.1 percent), and Lisbon, Portugal (+11.3 percent to 91.5 percent).
  • Moscow, Russia, fell 12.3 percent to 67.8 percent in occupancy, reporting the largest decrease in that metric.
  • Four markets achieved ADR growth of more than 15.0 percent: Edinburgh, Scotland (+30.2 percent to EUR133.75); Madrid (+29.6 percent to EUR107.91); Tel Aviv, Israel (+20.2 percent to EUR197.67); and Manchester, England (+16.8 percent to EUR97.30).
  • Three markets experienced RevPAR increases of more than 30.0 percent: Madrid (+46.7 percent to EUR85.31); Athens (+33.4 percent to EUR98.62); and Edinburgh (+32.1 percent to EUR123.98).
  • Moscow reported the largest ADR (-15.6 percent to EUR118.27) and RevPAR (-26.0 percent to EUR80.15) decrease in September.

Year-to-date 2014, when measured in Euros, Europe’s occupancy rose 2.1 percent to 69.5 percent; its ADR was up 3.7 percent to EUR106.64; and its RevPAR increased 5.9 percent to EUR74.07.

“During the third quarter Europe saw the largest ADR growth this year when measured in Euros“, commented Winkle. “In year-to-date results, supply growth is performing on par (+1.0 percent) while demand growth is ahead (+3.2 percent) when compared to last year”.

Middle East/Africa September 2014 results
The Middle East/Africa region reported positive performance during September 2014 when reported in U.S. dollars. In September, in year-over-year comparisons, the region reported a 13.1-percent increase in occupancy to 65.5 percent, a 1.3-percent increase in average daily rate to US$145.12 and a 14.5-percent increase in revenue per available room to US$94.99.

“All three sub-regions in September saw occupancy levels of 60 percent or above”, said Elizabeth Winkle. “It is positive to see consistency in performance in spite of instability leading to uncertainty in several countries.

“Amongst the high performers, Saudi Arabia is one of the region’s strongest in September as the country was gearing up for Hajj, which took place the first week in October”, said Winkle. “Cairo, whilst still in recovery mode, achieved occupancy levels of 51.8 percent with significant year-over-year growth of 107.5 percent”.
Highlights among the Middle East/Africa region’s key markets for September 2014 include (year-over-year comparisons, all currency in U.S. dollars):

  • Cairo, Egypt, reported the largest occupancy increase, jumping 107.5 percent to 51.8 percent. Beirut, Lebanon, followed with a 60.9-percent increase to 55.6 percent.
  • Jeddah, Saudi Arabia, recorded the largest ADR increase (+14.7 percent to US$269.52), followed by Cairo (+12.7 percent to US$107.86) and Muscat, Oman (+11.8 percent to US$205.72).
  • Four markets achieved double-digit or more RevPAR growth: Cairo (+133.9 percent to US$55.82); Beirut (+68.0 percent to US$82.99); Jeddah (+21.9 percent to US$216.34); and Doha, Qatar (+12.2 percent to US$127.50).
  • Lagos, Nigeria, experienced the largest decrease in all three key performance metrics. The market’s occupancy fell 35.4 percent to 36.8 percent; its ADR was down 11.3 percent to US$248.47; and its RevPAR decreased 42.7 percent to US$91.40.

Year-to-date 2014, when reported in U.S. dollars, the Middle East/Africa region’s occupancy increased 3.6 percent to 62.8 percent; its ADR was up 1.9 percent to US$161.62; and its RevPAR rose 5.7 percent to US$101.48.

“Year to date, MEA has achieved 5.7-percent RevPAR growth”, Winkle commented. “2014 has proved to be occupancy driven, compared to 2013 when performance was more rate driven”.