The Middle East/Africa region reported a 3.5-percent decrease in occupancy to 63.1 percent, a 5.9-percent increase in average daily rate to US$191.44 and a 2.1-percent increase in revenue per available room to US$120.88. Europe’s year-to-date revenue per available room has increased 0.8 percent and is expected to remain flat through the close of 2013.
The Middle East/Africa region reported mixed performance results during October 2013 when reported in U.S. dollars, according to data compiled by STR Global. The region reported a 3.5-percent decrease in occupancy to 63.1 percent, a 5.9-percent increase in average daily rate to US$191.44 and a 2.1-percent increase in revenue per available room to US$120.88.
The MEA region is posting positive results in U.S. dollar terms, thanks mainly to the performance of the Middle East. Dubai is one of the strongest performers in the Middle East.
“The exception was July, when Dubai saw a decline in occupancy because of Ramadan. October was the first month where supply growth outpaced demand growth, and as a result, October was the first month with an occupancy decline”, said Elizabeth Winkle, STR Global’s managing director.
Egypt, one of the main countries impacting northern Africa, experienced a decline in occupancy. The country’s ADR grew 9.5 percent in Egyptian pounds, but it fell 3.6 percent when calculated in U.S. dollars because of significant devaluation against the dollar.
Highlights among the region’s key markets for October 2013 include (year-over-year comparisons, all currency in U.S. dollars):
- Beirut, Lebanon, reported the largest occupancy increase, rising 17.6 percent to 45.3 percent. Abu Dhabi, United Arab Emirates, followed with a 15.8-percent increase to 76.7 percent.
- Cairo, Egypt, fell 46.6 percent in occupancy to 28.0 percent, posting the largest decrease in that metric.
- Abu Dhabi rose 10.7 percent in ADR to US$172.77, reporting the largest increase in that metric.
- Cairo (-11.6 percent to US$100.23) ended the month with the largest ADR decrease.
- Three markets achieved RevPAR increases of more than 10 percent: Abu Dhabi (+28.2 percent to US$132.46); Beirut (+17.3 percent to US$72.17); and Muscat, Oman (+11.5 percent to US$173.66).
- Cairo fell 52.8 percent in RevPAR to US$28.06, posting the largest decrease in that metric.
The European hotel industry posted mixed results in year-over-year metrics when reported in U.S. dollars, Euros and British pounds for October 2013. Europe’s year-to-date revenue per available room has increased 0.8 percent and is expected to remain flat through the close of 2013.
“Whilst demand has grown, it has come at the sacrifice of rate, which has dropped 1.3 percent this year”, said Elizabeth Winkle. “Northern Europe’s average daily rate is down 4.4 percent, mainly due to the high rates achieved during the 2012 Olympics which have normalized in 2013”. Winkle said there were positive signs for northern Europe’s hotel industry, including having the highest occupancy (73.7 percent) among Europe’s four regions. She also pointed out that the United Kingdom’s 75.8-percent occupancy is among the highest occupancy rates in northern Europe.
Highlights from key market performers for October 2013 include (year-over-year comparisons, all currency in Euros):
- Two markets reported double-digit occupancy increases. Vilnius, Lithuania, rose 20.5 percent to 70.0 percent in occupancy, while Athens, Greece, was up 16.2 percent to 67.3 percent.
- Istanbul, Turkey, fell 11.5 percent in occupancy to 69.5 percent, reporting the only double-digit decrease in that metric.
- Vilnius rose 33.2 percent in ADR to EUR65.00, achieving the largest increase in that metric.
- Madrid, Spain (-11.8 percent to EUR87.20), and Moscow, Russia (-8.9 percent to EUR145.79), posted the largest ADR decreases for the month.
- Four markets experienced RevPAR growth of more than 15 percent: Vilnius (+60.5 percent to EUR45.49); Copenhagen, Denmark (+25.4 percent to EUR87.20); Frankfurt, Germany (+20.2 percent to EUR113.01); and Athens, Greece (+15.2 percent to EUR66.51).
- Istanbul, Turkey, fell 17.2 percent in RevPAR to EUR114.72, reporting the largest decrease in that metric.
The Americas region recorded positive results in the three key performance metrics when reported in U.S. dollars during October 2013. Compared to October 2012, the Americas region reported a 1.0-percent monthly increase in occupancy to 64.7 percent, a 3.1-percent monthly increase in average daily rate to US$114.71 and a 4.1-percent monthly growth in revenue per available room to US$74.24.
Among the key markets in the region, Boston, Massachusetts (+6.2 percent to 86.1 percent), and Mexico City, Mexico (+5.0 percent to 74.9 percent), reported the largest occupancy increases for the month. San Juan, Puerto Rico, posted the largest occupancy decrease, falling 7.4 percent to 66.6 percent. Washington, D.C., followed with a 6.7-percent decrease to 67.4 percent.
Boston (+8.0 percent to US$199.42) and San Francisco, California (+5.4 percent to US$218.18), achieved the largest ADR increases. Panama City, Panama, fell 7.3 percent in ADR to US$103.19, reporting the largest decrease in that metric.
Boston (+14.8 percent to US$171.69) led RevPAR growth with the only double-digit increase. Panama City (-10.5 percent to US$54.21) posted the largest RevPAR decrease.
Photo caption: Radisson BLU Martinez Hotel, Beirut.
Vicky is the co-founder of TravelDailyNews Media Network where she is the Editor-in Chief. She is also responsible for the daily operation and the financial policy. She holds a Bachelor's degree in Tourism Business Administration from the Technical University of Athens and a Master in Business Administration (MBA) from the University of Wales.
She has many years of both academic and industrial experience within the travel industry. She has written/edited numerous articles in various tourism magazines.
