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STR Global: US, America, EMEA October 2014 results

In year-over-year comparisons, the MEA region reported a 7.2-percent increase in occupancy to 67.6 percent, a 2.4-percent decrease in average daily rate to US$182.34 and a 4.6-percent increase in revenue per available room to US$123.19. The European hotel industry posted mixed results in year-over-year metrics, while the U.S. hotel industry’s occupancy was up 5.3 percent to 68.0 percent.

The Middle East/Africa region reported mixed performance during October 2014 when reported in U.S. dollars, according to data compiled by STR Global. In year-over-year comparisons, the region reported a 7.2-percent increase in occupancy to 67.6 percent, a 2.4-percent decrease in average daily rate to US$182.34 and a 4.6-percent increase in revenue per available room to US$123.19.

“The region was a mixed picture in October”, said Elizabeth Winkle, managing director of STR Global. “It was only the second month all year the region reported a decrease in average daily rate. But, because of the 7.2-percent occupancy growth driven by countries such as Egypt and Lebanon, October still ended with positive revenue-per-available-room growth (+4.6 percent, when measured in U.S. dollars).

“South Africa created the largest drag on ADR in U.S. dollar terms (-4.7 percent). However, when viewed in local currency, the country’s ADR actually grew at a rate of 5.3 percent during October”, she said.

Highlights among the Middle East/Africa region’s key markets for October 2014 include (year-over-year comparisons, all currency in U.S. dollars):

  • Cairo, Egypt, increased 95.4 percent in occupancy to 55.3 percent, reporting the largest growth in that metric.
  • Lagos, Nigeria, fell 8.7 percent in occupancy to 46.9 percent, posting the largest decrease in that metric.
  • Cairo (+16.7 percent to US$116.24) and Jeddah, Saudi Arabia (+12.5 percent to US$270.58), achieved the largest ADR increases.
  • Abu Dhabi, United Arab Emirates, reported the largest ADR decrease, down 9.2 percent to US$154.75.
  • Cairo experienced the largest RevPAR growth, increasing 128.0 percent to US$64.25.
  • Lagos reported the only double-digit RevPAR decrease, falling 14.1 percent to US$116.71.

Europe hotel results for October 2014
The European hotel industry posted mixed results in year-over-year metrics when reported in U.S. dollars, Euros and British pounds for October 2014.

“Each month this year, Europe has reported either flat or positive performance in the three key performance metrics”, said Elizabeth Winkle. “October performance was no different. Actual average daily rate (EUR110.42) for the month was the highest rate we’ve seen in any October in the past 10 years. Compared to last year, ADR increased 3.8 percent. The ADR growth is driven mostly by Northern Europe, with help from Southern Europe.
 
“In Northern Europe, when measured in local currency year to date, markets such as Dublin, London, Copenhagen and Edinburgh have contributed to ADR growth”, Winkle continued. “With the exception of Dublin, the markets mentioned do not use the euro, which has an overall impact on the exchange rate. When measuring in constant currency, year-to-date ADR increased 4.4 percent for the Northern region. Athens, Lisbon and Madrid have all have contributed to Southern Europe’s ADR growth.

“Year to date, Western Europe still is achieving the highest actual ADR levels (EUR117.34) of all sub-regions”, Winkle commented. “Amsterdam, Geneva, Paris, and Zurich saw the highest year-to-date ADR levels in the region, when measured in Euros”.

Highlights from key market performers for October 2014 include (year-over-year comparisons, all currency in euros):

  • Athens, Greece, reported the only double-digit occupancy increase, rising 18.2 percent to 79.6 percent.
  • Tel Aviv, Israel, fell 24.4 percent to 64.9 percent in occupancy, posting the largest decrease in that metric.
  • Seven markets achieved ADR increases of more than 10.0 percent: Geneva, Switzerland (+14.6 percent to EUR243.28); Manchester, England (+12.9 percent to EUR94.32); Lisbon, Portugal (+12.0 percent to EUR97.86); Amsterdam, Netherlands (+11.1 percent to EUR161.27); Paris, France (+10.8 percent to EUR295.21); Budapest, Hungary (+10.4 percent to EUR75.37); and Edinburgh, Scotland (+10.2 percent to EUR99.14).
  • Moscow, Russia, reported the largest ADR decrease, falling 21.7 percent to EUR110.89. The market also experienced the largest RevPAR decrease, down 29.1 percent to EUR72.45.
  • Six markets reported RevPAR increases of more than 15.0 percent: Athens (+27.8 percent to EUR85.01); Geneva (+20.6 percent to EUR173.46); Lisbon (+20.4 percent to EUR83.12); Madrid, Spain (+18.3 percent to EUR74.87); Budapest (+18.2 percent to EUR58.64); and Manchester (+15.3 percent to EUR79.78).

US hotel performance for October 2014
The U.S. hotel industry reported positive results in the three key performance metrics during October 2014. Overall, in year-over-year results, the U.S. hotel industry’s occupancy was up 5.3 percent to 68.0 percent; its average daily rate rose 4.6 percent to US$118.87; and its revenue per available room increased 10.1 percent to US$80.81.

“Room demand grew 6.3 percent in October, the largest monthly growth reported since December 2010,” said Jan Freitag, senior VP of strategic development at STR. “The industry sold 104 million roomnights in October, something that has never happened in October. We broke the 100-million-roomnight mark for the fifth time this year.

“Occupancy this month ended at 68.0 percent, which marks the seventh month this year that occupancy was above 65.0 percent,” Freitag continued. “The last time we recorded numbers like these was in the mid-90s. With occupancy on that level, pricing power for hoteliers continues, as ADR was up 4.6 percent this month. RevPAR growth also broke records, as the growth this month (+10.1 percent) was the strongest October ever recorded.”

Fourteen of the Top 25 Markets reported double-digit RevPAR growth. Nashville, Tennessee, achieved the largest RevPAR growth, rising 23.4 percent to US$101.21. Four other markets reported RevPAR increases of more than 15.0 percent: Denver, Colorado (+20.5 percent to US$99.04); Orlando, Florida (+17.6 percent to US$78.95); Tampa/St. Petersburg, Florida (+16.4 percent to US$65.37); and Detroit, Michigan (+16.2 percent to US$64.58). Minneapolis/St. Paul, Minnesota-Wisconsin, posted the only RevPAR decrease, falling 4.0 percent to US$77.76.

All of the top markets recorded ADR increases. Nashville (+13.9 percent to US$126.34) led the gains, followed by Denver (+12.4 percent to US$123.03) and San Francisco/San Mateo, California (+12.3 percent to US$244.24).

Washington, D.C. (+10.5 percent to 74.6 percent), and Orlando (+10.1 percent to 73.6 percent) experienced the largest occupancy increases. Minneapolis/St. Paul fell 7.0 percent to 69.4 percent in occupancy, reporting the largest decrease in that metric.

Americas hotel results for October 2014
The Americas region recorded positive results in the three key performance metrics when reported in U.S. dollars during October 2014. Compared with October 2013, the Americas region reported a 5.0-percent increase in occupancy to 67.7 percent, a 4.1-percent increase in average daily rate to US$119.50 and a 9.3-percent increase in revenue per available room to US$80.91.

Among the key markets in the region, Washington, D.C., reported the only double-digit occupancy increase, rising 10.5 percent to 74.6 percent. Sao Paulo, Brazil (-6.4 percent to 65.9 percent), and Rio de Janeiro, Brazil (-6.2 percent to 75.0 percent), reported the largest occupancy decreases.

San Francisco, California (+12.3 percent to US$244.24), and Mexico City, Mexico (+11.8 percent to US$145.56), achieved the largest ADR increases.

Four markets reported double-digit RevPAR increases: Mexico City (+13.5 percent to US$112.31); Los Angeles, California (+11.8 percent to US$120.92); San Francisco (+10.9 percent to US$217.61); and Washington, D.C. (+10.9 percent to US$121.32).

Rio de Janeiro experienced the largest decreases in ADR (-12.1 percent to US$189.66) and RevPAR (-17.5 percent to US$142.31) for the month.

Tatiana Rokou

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.

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