Compared to October 2014, the Middle East subcontinent reported a 4.6% decrease in occupancy to 67.4%, a 12.3% drop in average daily rate to US$200.66 and a 16.3% decline in revenue per available room to US$135.24. Compared to October 2014, Europe reported a 2.5% increase in occupancy to 76.1%, a 6.5% increase in average daily rate to 117.78 euros and a 9.2% increase in revenue per available room to 89.58 euros.
Hotels in both the Middle East and Africa reported negative results in the three key performance metrics when reported in U.S. dollar constant currency, according to October 2015 data compiled by STR Global.
Compared to October 2014, the Middle East subcontinent reported a 4.6% decrease in occupancy to 67.4%, a 12.3% drop in average daily rate to US$200.66 and a 16.3% decline in revenue per available room to US$135.24.
The Northern Africa and Southern Africa subcontinents experienced a 0.3% decline in occupancy to 62.3%, a 4.9% drop in ADR to US$111.85 and a 4.6% decrease in RevPAR to US$69.70.
Performance of featured countries for October 2015 (local currency, year-over-year comparisons):
- Egypt reported decreases across the three key performance metrics: occupancy (-2.9% to 59.2%), ADR (-2.9% to EGP625.72) and RevPAR (-5.7% to EGP370.48). Absolute occupancy for the month remained comparable to October 2014 as well as September 2015. As the hotel industry in Egypt continues its recovery, year-to-date RevPAR is up 31.2%. However, the 31 October Russian plane crash in the Sinai Peninsula is expected to weaken performance results for November.
- Qatar saw a 6.2% decrease in occupancy to 74.1% and a 6.2% decline in RevPAR to QAR515.91. ADR in the country remained flat at QAR695.85. Supply increased by 5.5% for the month—the highest supply growth for any month in Qatar since March 2013. With supply growth above 3.0% for each month since August, occupancy has decreased by at least 5.0% in three straight months.
- The United Arab Emirates experienced a 0.7% decrease in occupancy to 78.5% as well as double-digit decreases in ADR (-10.3% to AED753.30) and RevPAR (-10.9% to AED591.31). Supply growth (+5.1%) outpaced demand (+4.4%) for the month, resulting in the slight dip in occupancy. STR Global analysts attribute the drop in ADR to a weak Euro. With a decrease in international arrivals from Europe, hotels have lowered rate in an effort to sustain demand.
Performance of featured markets for October 2015 (local currency, year-over-year comparisons):
- Beirut, Lebanon, recorded a 9.2% decrease in occupancy to 51.5%, a 6.9% drop in ADR to LBP221,116.01 and a 15.5% decline in RevPAR to LBP113,882.46. STR Global analysts cite security concerns and a high volume of Syrian refugees as reasons for the performance decreases in October.
- Dubai, United Arab Emirates, saw occupancy dip 2.5% to 80.0%. The market also reported double-digit decreases in ADR (-11.0% to AED871.96) and RevPAR (-13.2% to AED697.20). The shift of Eid al-Adha from October 2014 to September 2015 negatively affected performance, especially at the beginning of the month. ADR in the market has continued to decline in year-over-year comparisons as the market prices more competitively to try to stimulate the traditional levels of high demand.
- Nairobi, Kenya, experienced a 2.3% drop in occupancy to 56.8%. However, ADR in the market was up 14.2% to KES14,677.82, driving an 11.5% rise in RevPAR to KES8,337.53. The rate growth in Nairobi was the highest since July, when U.S. President Barack Obama visited the country.
Europe hotel results for October 2015
The European hotel industry recorded positive results in the three key performance metrics when reported in Euro constant currency. Compared to October 2014, Europe reported a 2.5% increase in occupancy to 76.1%, a 6.5% increase in average daily rate to EUR117.78 and a 9.2% increase in revenue per available room to EUR89.58.
Performance of featured countries for October 2015 (local currency, year-over-year comparisons):
- Germany reported increases in each of the three key performance metrics: occupancy (+1.6% to 77.0%), ADR (+6.4% to EUR107.67) and RevPAR (+8.1% to EUR82.91). Rate drove RevPAR for the month as German hotels benefitted from a mix of international fairs such as the ANUGA Food Show in Cologne (10-14 October), ceramitec in Munich (20-23 October) and the European Petrochemical Association’s (EPCA) annual meeting in Berlin (3-7 October).
- Occupancy in Malta remained nearly flat (-0.8% to 88.8%), but the country reported double-digit growth for ADR (+14.0% to EUR129.72) and RevPAR (+13.1% to EUR115.20). October was the fifth month in a row in which hotels in Malta experienced double-digit growth in RevPAR. ADR in the country received a boost from a European Poker Tour event on 20-31 October.
- Poland recorded a 4.9% increase in occupancy to 77.1%, a 3.7% rise in ADR to PLN275.31 and an 8.8% increase in RevPAR to PLN212.31. STR Global analysts point to strong leisure visitation for the reason behind the country’s October year-to-date RevPAR of EUR183.98, the highest for that time period since 2007.
- Spain posted a 5.7% rise in occupancy to 77.1% as well as double-digit increases in ADR (+13.8% to EUR104.26) and RevPAR (+20.3% to EUR80.43). Spain’s absolute occupancy for October was its highest since 2000, while RevPAR reached its highest level for the month since 2002. Barcelona hosted four medical conferences in October: the 54th Annual Meeting of the European Society for Paediatric Endocrinology (ESPE) on 1-3 October; the 31st Congress of the European Committee for Treatment and Research in Multiple Sclerosis (ECTRIMS) on 7-10 October; the CPhl worldwide exhibition on 4-6 October; and the 23rd United European Gastroenterology (UEG) week on 24-28 October.
Performance of featured markets for October 2015 (local currency, year-over-year comparisons):
- Athens, Greece, reported decreases across the key performance metrics. Occupancy in the market fell 8.9% to 70.1%; ADR was down 1.1% to EUR113.31; and RevPAR dropped 9.9% to EUR79.48. SETE Association of Greek Tourism Enterprises reported a 25.1% increase in third-quarter international arrivals in Athens. According to STR Global analysts, the increase did not translate into bookings and suggests that visitors opted for different forms of accommodations.
- London, England, saw occupancy (+0.5% to 88.4%) remain almost flat. ADR in the market was up 6.6% to GBP160.49, and RevPAR increased 7.2% to GBP141.81. October events in the market included: Rugby World Cup; two National Football League games; Helitech International; and TabExpo.
- Milan, Italy, saw the top performance increases for any of the key markets in Europe: occupancy (+26.3% to 90.8%), ADR (+38.9% to EUR184.95) and RevPAR (+75.4% to EUR167.92). Hotels in the market benefitted greatly from the final month of Expo Milano 2015.
- Paris, France, saw minor decreases in the three key performance measurements: occupancy (-0.4% to 85.7%), ADR (-1.2% to EUR279.48) and RevPAR (-1.6% to EUR239.57). Performance in the market was weakened due to a lack of events when compared with October 2014.
Americas hotel results for October 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 October 2014, the Americas region reported a 1.2% increase in occupancy to 68.5%; average daily rate was up 5.2% to US$123.74; and revenue per available room increased 6.5% to US$84.80.
Performance of featured countries for October 2015 (local currency, year-over-year comparisons):
- Argentina reported a 7.7% decrease in occupancy to 61.0%. A 9.5% rise in ADR to ARS1,141.16 pushed RevPAR up 1.0% to ARS696.17. The absolute occupancy in the market was the lowest for any October since 2002. A decrease in demand, especially in the corporate segment, has contributed to lower occupancy in the country. According to STR Global analysts, election season and a sluggish economy have the country in what appears to be a standstill situation.
- Brazil saw decreases in occupancy (-5.6% to 59.2%) and RevPAR (-3.3% to BRL165.08). ADR in the country was up 2.4% to BRL279.06. The negative performance in occupancy and RevPAR follows a trend that began in August 2014, the first month after the FIFA World Cup.
- El Salvador experienced a 1.5% increase in occupancy to 69.2%, a 2.3% rise in ADR to US$97.58 and a 3.8% lift in RevPAR to US$67.56. The country, famous for its surfing conditions, draws more than 1 million foreign visitors annually according to The World Bank. STR Global analysts point to that steady flow in visitors as reason for positive performance even in a time of gang violence in the nation.
Performance of featured markets for October 2015 (local currency, year-over-year comparisons):
- Lima, Peru, saw occupancy fall 8.3% to 76.5%. However, ADR (+63.5% to PEN721.40) and RevPAR (+50.0% to PEN551.82) in the market increased greatly thanks to the Annual Meetings of the Board of Governors of the World Bank Group (5-12 October).
- San José, Costa Rica, reported increases in occupancy (+8.0% to 59.7%) and RevPAR (+1.7% to CRC29,764.51). However, ADR dropped 5.8% to CRC49,837.53. According to STR Global analysts, the International Conference on Impunity for Crimes against Journalists (9 October) helped demand but failed to ignite ADR.
- Quito, Ecuador, experienced declines in occupancy (-9.6% to 68.0%) and RevPAR (-9.6% to US$72.19). ADR in the market remained flat at US$106.13. A decrease in demand in the market came after months of activity from the Cotopaxi Volcano.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
