Europe’s hotel industry reported positive results in the three key performance metrics during July 2018, according to data from STR.
LONDON – Hotels in the Middle East reported mixed July 2018 performance results, while hotels in Africa posted growth across the three key performance metrics, according to data from STR.
U.S. dollar constant currency, July 2018 vs. July 2017
Middle East
- Occupancy: +5.8% to 59.0%
- Average daily rate (ADR): -5.8% to US$125.07
- Revenue per available room (RevPAR): -0.3% to US$73.82
Africa
- Occupancy: +2.5% to 62.0%
- Average daily rate (ADR): +11.7% to US$112.95
- Revenue per available room (RevPAR): +14.6% to US$70.05
Local currency, July 2018 vs. July 2017
Jeddah, Saudi Arabia
- Occupancy: +12.4% to 76.6%
- ADR: +15.5% to SAR1,363.71
- RevPAR: +29.8% to SAR1,044.31
The absolute occupancy level in Jeddah was the highest for any July since 2012, while ADR was the highest on record for the month. STR analysts cite group business (bookings of 10 rooms or more) as a reason behind the strong performance in the market.
Sharm El Sheikh, Egypt
- Occupancy: +1.8% to 62.5%
- ADR: +42.7% to EGP1,106.67
- RevPAR: +45.4% to EGP691.78
Both the absolute ADR and RevPAR levels were the highest for any July in STR’s database for the market. When examining different days of the month, STR analysts note that 30 and 31 July produced RevPAR growth of 112.3% and 106.9%, respectively.
Europe’s hotel industry reported positive results in the three key performance metrics during July 2018, according to data from STR.
Euro constant currency, July 2018 vs. July 2017
Europe
- Occupancy: +0.8% to 78.6%
- Average daily rate (ADR): +6.2% to EUR123.11
- Revenue per available room (RevPAR): +7.0% to EUR96.82
Local currency, July 2018 vs. July 2017
London
- Occupancy: +4.0% to 91.0%
- ADR: +4.3% to EUR170.63
- RevPAR: +8.5% to EUR155.31
The absolute ADR and RevPAR levels were the highest for any month in STR’s London database. STR analysts attribute the strong performance to an unseasonably warm summer, as well as high-impact events such as Wimbledon and London Pride.
Moscow
- Occupancy: +3.6% to 78.0%
- ADR: +185.9% to RUB14,099.74
- RevPAR: +196.2% to RUB11,001.70
The absolute performance levels were each down from the previous month, but were the largest for any July on record. STR analysts note that a lack of significant supply growth ahead of the 2018 FIFA World Cup allowed for more performance growth in the market.
Hotels in the Central/South America region reported a slight occupancy decline with significantly higher room rates during July 2018, according to data from STR.
U.S. dollar constant currency, July 2018 vs. July 2017
Central/South America
- Occupancy: -0.4% to 57.5%
- Average daily rate (ADR): +85.0% to US$175.15
- Revenue per available room (RevPAR): +84.3% to US$100.69
STR analysts note that the spike in ADR and RevPAR was due primarily to a 500% increase in ADR in Venezuela, caused by inflation of more than 2,000%.
Local currency, July 2018 vs. July 2017
Lima, Peru
- Occupancy: -8.6% to 61.3%
- ADR: -0.5% to PEN425.55
- RevPAR: -9.1% to PEN260.92
Hotel performance in Lima was negative for the third month in a row, due to a 2.8% decline in demand (room nights sold) and an influx of supply (+6.4%). On a positive note, the 2018 IASIA-LAGPA International Conference was held 23-26 July, boosting RevPAR as much as 27.1% during that time period.
Buenos Aires, Argentina
- Occupancy: -6.4% to 63.4%
- ADR: +64.1% to ARS3,106.55
- RevPAR: +53.6% to ARS1,969.56
The market experienced just six days of year-over-year occupancy growth during the month. STR analysts attribute a third consecutive month of ADR growth of more than 50% to the devaluation of the Argentine Peso.
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.
