Hotel du Louvre, Paris.
Kenya performance improves, but remains below historical average. Lebanon February rates increase for first time since 2015; Oman demand reaches all-time high for February. Europe’s hotel industry reported increases across the three key performance metrics during February 2018.
LONDON – Hotels in the Middle East reported negative February 2018 performance results, while hotels in Africa posted growth across the three key performance metrics, according to data from STR. Europe’s hotel industry reported increases across the three key performance metrics during February 2018.
Middle East
- Occupancy: -0.7% to 70.5%
- Average daily rate (ADR): -7.3% to US$161.96
- Revenue per available room (RevPAR): -7.9% to US$114.26
Africa
- Occupancy: +3.8% to 61.0%
- Average daily rate (ADR): +7.3% to US$125.04
- Revenue per available room (RevPAR): +11.4% to US$76.26
Local currency, February 2018 vs. February 2017
Kenya
- Occupancy: +2.8% to 55.3%
- Average daily rate (ADR): -2.0% to KES132.20
- Revenue per available room (RevPAR): +0.7% to KES73.17
STR analysts credit demand (room nights sold) and occupancy growth in the country to further time removed from major political and security instability. However, the February occupancy level remained well below the historical average in the country. Supply growth (+3.4%) likely played a role in in the year-over-year ADR decrease.
Lebanon
- Occupancy: -0.5% to 51.7%
- ADR: +2.5% to LBP149.81
- RevPAR: +2.0% to LBP77.53
The increase in ADR was the first for a February in Lebanon since 2015. According to STR analysts, security concerns continue to weigh on the country’s hotel performance. Demand, down 0.4% in February, has dropped year-over-year for four straight months. At the same time, supply growth has been minimal.
Oman
- Occupancy: +4.0% to 73.7%
- ADR: +1.7% to OMR174.85
- RevPAR: +5.8% to OMR128.87
Demand reached an all-time high for a February in Oman. ADR has now increased for two consecutive months in the country after three straight years of mostly ADR declines.
Europe hotel performance
Europe’s hotel industry reported increases across the three key performance metrics during February 2018, according to data from STR.
Euro constant currency, February 2018 vs. February 2017
Europe
- Occupancy: +2.1% to 65.5%
- Average daily rate (ADR): +2.5% to EUR99.87
- Revenue per available room (RevPAR): +4.7% to EUR65.43
Local currency, February 2018 vs. February 2017
Czech Republic
- Occupancy: +3.6% to 56.5%
- ADR: -1.9% to CZK1,642.46
- RevPAR: +1.6% to CZK928.61
The number of rooms nights sold (demand) and absolute occupancy level were the highest for any February in STR’s Czech Republic database. STR analysts note that an incredibly stable supply situation continues to help performance in the country. However, RevPAR growth was limited as ADR declined for the second month in a row after nine consecutive months of increases to close 2017. Overall performance gains have been common among Central and Eastern European countries because they are generally considered safe destinations with stable political environments and growing economies.
France
- Occupancy: +6.2% to 59.6%
- ADR: +8.6% to EUR105.08
- RevPAR: +15.4% to EUR62.62
STR analysts point out that February is historically the lowest hotel demand month of the year in France. However, the country reported its highest absolute occupancy level for a February since 2008 and highest absolute RevPAR level for a February since 2014. National performance was heavily influenced by Paris’ 12.7% increase in RevPAR to EUR135.18. With its highest February occupancy since 2014, Paris continues to regain its attractiveness as a destination following the terror attacks of recent years.
Malta
- Occupancy: -3.2% to 58.2%
- ADR: -7.6% to EUR90.56
- RevPAR: -10.5% to EUR52.71
According to STR analysts, year-over-year ADR comparisons were difficult to match due to the Malta Informal Summit last February, which brought together 28 EU heads of state of government. Demand actually rose slightly (+0.3%) year over year, but supply growth (+3.6%) pulled down occupancy levels.
Central/South America hotel performance
Hotels in the Central/South America region reported strong growth across the three key performance metrics, according to February 2018 data from STR.
U.S. dollar constant currency, February 2018 vs. February 2017
Central/South America
- Occupancy: +4.2% to 57.8%
- Average daily rate (ADR): +8.6% to US$109.75
- Revenue per available room (RevPAR): +13.2% to US$63.40
Local currency, February 2018 vs. February 2017
Brazil
- Occupancy: +2.2% to 52.0%
- ADR: +2.8% to BRL309.33
- RevPAR: +5.1% to BRL160.73
The absolute ADR level was the highest for any month in Brazil since August 2016, which is another sign of performance recovery in the country. Aside from demand growth (+4.4%), the overall positive performance can be attributed to much lower supply growth (+2.1%) compared with the past several Februarys. Rio de Janeiro helped the country’s overall performance, reaching double-digit growth in occupancy (+13.8%) and RevPAR (+14.7%).
Ecuador
- Occupancy: +0.3% to 61.4%
- ADR: +2.5% to US$97.52
- RevPAR: +2.8% to US$59.91
ADR reached its highest level for any month in Ecuador since October 2016 and the highest for a February since 2016. The WIDA International School Consortium (22-25 February) helped boost performance in Quito, as did the football match between Quito and Guayaquil City, which raised occupancy 104.4% on 27 February. For the month overall, Quito occupancy grew 8.3% to 62.4%, which was the highest absolute occupancy level for a February in the market since 2015.
Panama
- Occupancy: +0.8% to 56.9%
- ADR: +1.3% to PAB97.58
- RevPAR: +2.2% to PAB55.52
The occupancy level was the highest for a February in Panama since 2014. The market also saw its first year-over-year increase in ADR since April 2015.
Tatiana is the news coordinator for TravelDailyNews Media Network (traveldailynews.gr, traveldailynews.com and traveldailynews.asia). Her role includes monitoring the hundreds of news sources of TravelDailyNews Media Network and skimming the most important according to our strategy.
She holds a Bachelor's degree in Communication & Mass Media from Panteion University of Political & Social Studies of Athens and she has been editor and editor-in-chief in various economic magazines and newspapers.
