Compared to June 2014, the Middle East/Africa region reported an 8.2% decrease in occupancy to 56.1%, a 4.2% increase in average daily rate to US$141.93 and a 4.4% decrease in revenue per available room to US$79.59. Compared to June 2014, Europe reported a 4.5% increase in occupancy to 78.1%, a 5.5% increase in average daily rate to 122.10 euros and a 10.2% increase in revenue per available room to 95.34 euros.
Hotels in the Middle East/Africa region reported mixed results in the three key performance metrics when reported in U.S. dollar constant currency, according to June 2015 data compiled by STR Global.
Compared to June 2014, the Middle East/Africa region reported an 8.2% decrease in occupancy to 56.1%, a 4.2% increase in average daily rate to US$141.93 and a 4.4% decrease in revenue per available room to US$79.59.
Performance of featured countries for June 2015 (local currency, year-over-year comparisons):
- Jordan saw declines in each of the three key performance metrics: occupancy (-31.7% to 43.6%), ADR (-6.2% to JOD101.48) and RevPAR (-35.9% to JOD44.28). According to STR Global analysts, the situation in Syria and the number of refugees entering Jordan has affected hotel performance in the country.
- Nigeria experienced a 0.8% decrease in occupancy. However, inflation levels pushed ADR in the country up 7.7% to NGN45,128.00. RevPAR increased 6.9% to NGN23,662.40.
- Qatar reported double-digit declines in occupancy (-21.0% to 59.2%) and RevPAR (-18.5% to QAR388.64). ADR in the country was up 3.2% to QAR656.32. The performance declines in Qatar coincide with Ramadan.
- South Africa reported a 0.5% decrease in occupancy to 55.4%, but ADR (+7.2% to ZAR1,013.28) and RevPAR (+6.6% to ZAR561.08) each increased. According to STR Global analysts, supply, demand and pipeline growth have all remained slowed in South Africa due to economic performance.
Performance of featured markets for June 2015 (local currency, year-over-year comparisons):
- Abu Dhabi, United Arab Emirates, reported decreases in each of the three key performance metrics: occupancy (-10.2% to 60.9%), ADR (-3.7% to AED389.42) and RevPAR (-13.5% to AED237.26). The performance decreases in the market are consistent with Ramadan.
- Dubai, United Arab Emirates, recorded a 15.4% decrease in occupancy to 63.2%, an 8.8% drop in ADR to AED577.85 and a 22.9% decline in RevPAR to AED365.16. Occupancy in Dubai remained steady during Ramadan 2015 when compared to Ramadan 2014, even with a 6.2% year-over-year increase in year-to-date supply.
- Johannesburg, South Africa, reported an 8.3% increase in occupancy to 60.3% as well as double-digit growth in ADR (+16.5% to ZAR888.15) and RevPAR (+26.2% to ZAR535.95).
- Sandton and its surrounding areas in South Africa saw double-digit growth in the three key performance measurements: occupancy (+15.9% to 70.4%), ADR (+11.2% to ZAR1,293.02) and RevPAR (+28.9% to ZAR909.64).
According to STR Global analysts, the performance in the two key South African markets has remained strong despite fewer international arrivals due to strict visa requirements and the after-effect of the Ebola pandemic.
Europe hotel results for June 2015
The European hotel industry recorded positive results in the three key performance metrics when reported in Euro constant currency. Compared to June 2014, Europe reported a 4.5% increase in occupancy to 78.1%, a 5.5% increase in average daily rate to EUR122.10 and a 10.2% increase in revenue per available room to EUR95.34.
Performance of featured countries for June 2015 (local currency, year-over-year comparisons):
- Finland reported mixed results in the three key performance metrics with a 1.4% increase in occupancy to 71.4%, a 0.5% decrease in ADR to EUR97.44 and a 0.9% increase in RevPAR to EUR69.59.
- Italy posted a 7.4% increase in occupancy to 74.5% as well as double-digit growth in ADR (+12.3% to EUR167.62) and RevPAR (+20.5% to EUR124.81).
- Romania reported positive results in the three key performance measurements: occupancy (+7.3% to 75.8%); ADR (+8.4% to RON328.63); and RevPAR (+16.3% to RON249.06). STR Global analysts note that value added tax in the country is set to decrease to 19% from 24% in 2016, a move which should further aid tourism. VAT was cut to 9% for hotel accommodation in January 2015 and, whilst too early to judge, that cut might be a catalyst for stronger performance.
- Spain experienced a 3.5% increase in occupancy to 76.5%, an 8.4% lift in ADR to EUR97.58 and a 12.2% rise in RevPAR to EUR74.69. Key June events hosted in the country included the 10th International Conference on Ecosystems & Sustainable Development (ECOSUD 2015) and The International School & Conference on Network Science (NETSCI2015).
Performance of featured markets for June 2015 (local currency, year-over-year comparisons):
- Athens, Greece, saw occupancy rise 3.2% to 90.5%. However, ADR in the market was down 3.8% to EUR135.04 and RevPAR decreased 0.7% to EUR122.17. Demand in the market remained strong despite the month’s uncertainty about Greece’s participation in the Euro and agreement of a third European bailout in Greece.
- Lisbon, Portugal, reported a 7.7% increase in occupancy to 84.0%. The market also recorded double-digit growth for ADR (+19.8% to EUR104.26) and RevPAR (+29.0% to EUR87.58). Year-end GDP in Portugal is expected to increase by 1.7%, according to Oxford Economics.
- Milan, Italy, experienced double-digit increases for each of the three key metrics: occupancy (+10.9% to 76.5%), ADR (+29.5% to EUR177.63) and RevPAR (+43.7% to EUR135.82). Expo Milano 2015 reported 6.1 million attendees through June.
- Zurich, Switzerland, reported increases in occupancy (+3.2% to 83.8%) and RevPAR (+2.5% to CHF206.89). ADR in the market fell 0.6% to CHF246.74. According to STR Global analysts, hotel performance in Switzerland has fluctuated due to the unpegging of the Swiss franc, which has made the destination more expensive.
Americas hotel results for June 2015
Hotels in the Americas region recorded positive results in the three key performance metrics when reported in U.S. dollar constant currency. Compared to June 2014, the Americas region reported a 2.1% increase in occupancy to 72.6%, a 4.7% increase in average daily rate to US$122.12 and a 6.9% increase in revenue per available room to US$88.60.
Performance of featured countries for June 2015 (local currency, year-over-year comparisons):
- Argentina recorded double-digit growth in each of the three key performance metrics: occupancy (+12.4% to 54.1%), ADR (+15.6% to ARS1,034.67) and RevPAR (+30.0% to ARS559.27). According to STR Global analysts, a high inflation rate has led to a 13.0% year-over-year increase in year-to-date ADR. ADR in Argentina has grown in year-over-year comparisons for 33 consecutive months.
- Chile experienced the largest year-over-year occupancy increase (+20.3% to 66.7%) for any of the key countries in the Americas region. ADR in Chile was also up 31.4% to CLP101,184.23, and RevPAR increased 58.1% to CLP67,536.97. From 11 June to 4 July, the country played host to Copa America 2015.
- Brazil reported decreases in the three key performance measurements: occupancy (-6.8% to 57.3%), ADR (-36.3% to BRL276.54) and RevPAR (-40.6% to BRL158.48). Brazil’s performance reflects difficult-to-match comparisons from the same period in 2014, when the country hosted the FIFA World Cup.
- Peru saw a 4.1% rise in occupancy to 66.1% and double-digit increases for ADR (+12.1% to PEN447.39) and RevPAR (+16.7% to PEN295.87).
Performance of featured markets for June 2015 (local currency, year-over-year comparisons):
- Buenos Aires, Argentina, recorded double-digit increases in the three key performance metrics. Occupancy in the market increased 14.2% to 56.6%; ADR was up 13.1% to ARS1,142.96; and RevPAR rose 29.1% to ARS646.63. The market hosted the Argentina Hockey World League Semi-Final from 3-4 June as well as the Buenos Aires International Motor Show from 18-28 June.
- San Juan, Puerto Rico, reported nearly flat occupancy performance (+0.2% to 82.6%). ADR in the market was up 2.4% to US$157.75, and RevPAR increased 2.7% to US$130.24. STR Global analysts noted the above 80% occupancy level in San Juan despite on-going economic woes in Puerto Rico.
- Santiago, Chile, experienced a 23.8% increase in occupancy to 70.6%. ADR in the market was up 38.7% to CLP111,598.63, and RevPAR increased 71.7% to CLP78,752.68. Year-to-date RevPAR in Santiago has increased 1.6% year-over-year as hotel performance has fluctuated.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
