Overall, the U.S. hotel industry’s occupancy was up 2.9 percent to 71.7 percent; its average daily rate rose 4.3 percent to US$116.20; and its revenue per available room increased 7.2 percent to US$83.27. The Middle East/Africa region reported a 1.0-percent increase in occupancy to 64.6 percent.
The U.S. hotel industry reported positive results in the three key performance metrics during June 2014, according to data from STR. Overall, the U.S. hotel industry’s occupancy was up 2.9 percent to 71.7 percent; its average daily rate rose 4.3 percent to US$116.20; and its revenue per available room increased 7.2 percent to US$83.27.
Among the Top 25 Markets, Atlanta, Georgia, rose 8.2 percent to 71.2 percent, reporting the largest increase in that metric. Dallas, Texas, followed with a 7.2-percent increase to 73.5 percent. Philadelphia, Pennsylvania-New Jersey (-2.6 percent to 74.5 percent), and St. Louis, Missouri-Illinois (-2.2 percent to 75.1 percent), reported the largest occupancy decreases.
Three markets achieved double-digit ADR increases: Nashville, Tennessee (+14.9 percent to US$125.93); San Francisco/San Mateo, California (+12.9 percent to US$213.54); and Seattle, Washington (+11.5 percent to US$150.14).
Ten of the Top 25 Markets reported double-digit RevPAR growth. Nashville rose 18.9 percent to US$102.57, reporting the largest RevPAR increase, followed by Atlanta (+14.4 percent to US$64.08) and Detroit, Michigan (+13.6 percent to US$67.70).
Two of the Top 25 Markets reported decreases in ADR and RevPAR, with Philadelphia recording the largest decreases in both metrics. The market fell 4.6 percent in ADR to US$123.70 and 7.0 percent in RevPAR to US$92.10. Chicago, Illinois, fell 1.7 percent in ADR to US$151.38 and fell 0.1 percent in RevPAR to US$124.08.
The Middle East/Africa region reported positive performance year-to-date June 2014 when reported in U.S. dollars, according to data compiled by STR Global.
The region reported a 1.0-percent increase in occupancy to 64.6 percent, a 3.5-percent increase in average daily rate to US$169.22 and a 4.5-percent increase in revenue per available room to US$109.24.
“While there has not been a lot of movement in occupancy, rate has increased by 5.4 percent when measured in a constant-currency basis in U.S. dollars1, resulting in RevPAR growth of 6.4 percent for the first six months of the year”, said Elizabeth Winkle, managing director of STR Global. “We are seeing rate growth for all three sub-regions, including the Middle East (+2.4 percent), Northern Africa (+2.0 percent) and Southern Africa (+7.2 percent). It is nice to see some ADR growth across the region, albeit muted, in spite of instability and turbulence in many of the countries.
“The Middle East, which will be affected by Ramadan starting on 29 June, has reported a mixed picture for the first six months of the year”, Winkle continued. “Jordan and the United Arab Emirates have been the standout countries so far this year. Coming from a low base, Jordan (+11.4 percent) and Bahrain (+18.3 percent) both recorded double-digit RevPAR increases for the first half of the year, in local and constant currency”.
In June 2014, the region’s occupancy fell 0.6 percent to 61.3 percent; its ADR increased 3.0 percent to US$142.80; and its RevPAR rose 2.4 percent to US$87.57.
Highlights among the Middle East/Africa region’s key markets for June 2014 include (year-over-year comparisons, all currency in U.S. dollars):
- Doha, Qatar (+17.4 percent to 75.2 percent), and Beirut, Lebanon (+17.2 percent to 63.7 percent), reported the largest occupancy increases.
- Nairobi, Kenya, posted the largest occupancy decrease, falling 11.6 percent to 57.7 percent.
- Two markets achieved double-digit ADR increases: Jeddah, Saudi Arabia (+12.0 percent to US$282.62), and Manama, Bahrain (+11.9 percent to US$212.73).
- Riyadh, Saudi Arabia, fell 6.9 percent in ADR to US$221.47, posting the largest decrease in that metric.
- Four markets experienced RevPAR growth of more than 15.0 percent: Manama (+27.5 percent to US$123.12); Beirut (+20.4 percent to US$105.37); Cape Town, South Africa (+16.0 percent to US$51.68); and Doha (+15.6 percent to US$130.05).
- Nairobi fell 13.0 percent to US$85.11 in RevPAR, 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 June 2014. Highlights from key market performers for June 2014 include (year-over-year comparisons, all currency in Euros):
- Athens, Greece, rose 19.9 percent in occupancy to 88.2 percent, reporting the largest increase in that metric. Bucharest, Romania, followed with an 11.3-percent increase to 74.5 percent.
- Moscow, Russia (-12.4 percent to 67.7 percent), and Frankfurt, Germany (-11.5 percent to 65.7 percent), posted the largest occupancy decreases.
- Copenhagen, Denmark (+16.4 percent to EUR142.62), and Edinburgh, Scotland (+11.6 percent to EUR117.89), reported the only double-digit ADR growth during June.
- Lisbon, Portugal, fell 15.0 percent in ADR to EUR90.64, posting the largest decrease in that metric.
- Three markets experienced RevPAR growth of more than 10.0 percent: Athens (+31.1 percent to EUR108.10); Copenhagen (+23.5 percent to EUR128.57); and Edinburgh (+10.3 percent to EUR103.95).
- Geneva, Switzerland, fell 13.3 percent in RevPAR to EUR185.96, reporting the largest decrease in that metric.
Year-to-date June 2014, Europe’s occupancy rose 2.1 percent to 66.0 percent; its ADR, in Euro terms, grew 2.4 percent to EUR103.90; and its RevPAR increased 4.5 percent to EUR68.59.
“Year to date, the region is growing on par for both occupancy and ADR, achieving a 4.6-percent growth in RevPAR, when measured in constant currency terms in Euros”, said Elizabeth Winkle, managing director of STR Global. “Looking at the four sub-regions, Northern and Southern Europe have achieved more than 7.0-percent growth in RevPAR, in constant currency. The only region to report negative RevPAR results was Eastern Europe (-0.9 percent), but this is mostly driven by a drop in occupancy of 3.8 percent.
“As economies across Europe improve, we are starting to see the impact in the hotel industry. There are some standout performers, such as the United Kingdom, where the economy is performing well. Concerns exist, particularly in France, where the proposal of a new hotel tax is on the horizon. With recent VAT increases on hotel stays, the new tax, if passed, could have a damaging impact on hotels performance and profitability”.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
