25 Jan, 2012

STR Global Releases World Hotel Performance Results 2011

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Hotels in Venice, Abu Dhabi, Santiago and Asian cities such as Bangkok, Hong Kong, Jakarta and Singapore were among the big winners of 2011, according to hotel occupancy and revenue data compiled by STR Global and released on January 24. The performance of Bangkok was a surprise inclusion. Cities worldwide showed the impact of both natural disasters and political crises.

Asia/Pacific hotel performance results

LONDON—Hotels in the Asia/Pacific region experienced positive results in the three key performance metrics in 2011 when reported in U.S. dollars, according to data compiled by STR Global.

In year-over-year measurements, the Asia/Pacific region’s occupancy ended the year virtually flat with a 0.2-percent increase to 66.8 percent, its average daily rate increased 9.5 percent to US$140.44 and its revenue per available room was up 9.8 percent to US$93.84.

“Despite the impact of natural disasters, Asia/Pacific reported the highest RevPAR (US$94) and highest average room rate (US$140) in 2011 for the last seven years (since 2005)”, said Elizabeth Randall, managing director of STR Global. “Occupancy levels were on par with last year and lower than 2007 levels reflecting the increasing room stock across the region. Room supply grew by 3.3 percent compound annual growth rate between 2005 and 2010, supply growth fell below the three percent mark in 2011. We are expecting to see performance rebounds in 2012 depending on the avoidance of a wider cooling of the world economy. Our latest Market Forecast, released in November, predicts the performance of Beijing, Hong Kong, Singapore and Sydney. For all four cities we currently expect RevPAR in local currency to increase between 2.8 percent (Sydney) and 9 percent (Singapore)”.

Highlights from key market performers for 2011 in local currency (year-over-year comparisons):

• Bangkok, Thailand, experienced the largest occupancy increase, rising 17.6 percent to 63.2 percent, followed by Phuket, Thailand, with a 10.1-percent increase to 69.7 percent.
• Shanghai, China, reported the only double-digit occupancy decrease, falling 11.6 percent to 56.6 percent.
• Three markets posted ADR increases of more than 10 percent: Hong Kong (+23.1 percent to HKD1,909.45); Jakarta, Indonesia (+13.7 percent to IDR794,656.83); and Bali, Indonesia (+10.6 percent to IDR1,319,697.10).
• Shanghai (-7.5 percent to CNY785,15) and Tokyo, Japan (-6.7 percent to JPY13,144.87) reported the largest ADR decreases for the year.
• Three markets ended the year with RevPAR increases of more than 15 percent: Hong Kong (+26.0 percent to HKD1,601.23); Jakarta (+19.5 percent to IDR569,471.36); and Bangkok (+19.1 percent to 1,888.94).
• Three markets experienced RevPAR decreases of more than 10 percent: Shanghai (-18.2 percent to CNY444.27); Tokyo (-14.7 percent to JPY9,766.07); and New Delhi, India (-11.4 percent to INR5,272.13).

Performances of key countries in 2011 (all monetary units in local currency):

Country	Occupancy	% change	ADR	% change	RevPAR	% change
Australia	73.8%	+1.1%	AUD172.11	+3.5%	AUD126.96	+4.7%
China	61.6%	+0.3%	CNY768.40	+2.5%	CNY473.10	+2.8%
India	59.9%	-1.2%	INR6,607.85	-0.9%	INR3,959.77	-2.1%
Singapore	83.9%	+1.0%	SGD290.14	+9.9%	SGD243.42	+11.0%

*percentages are increases/decreases for 2011 vs. 2010

Highlights from key market performers for 2011 in U.S. dollars (year-over-year comparisons):

• Hong Kong experienced the largest ADR increase, rising 22.8 percent to US$245.30, followed by Brisbane, Australia, with a 20.8-percent increase to US$190.91.
• New Delhi (-7.6 percent to US$174.21) and Mumbai, India (-4.9 percent to US$177.32), ended the year with the largest ADR decreases.
• Five markets achieved RevPAR increases of more than 20 percent: Hong Kong (+25.8 percent to US$205.71); Jakarta (+23.5 percent to US$64.56); Bangkok (+23.0 percent to US$61.28); Brisbane (+21.2 percent to US$153.40); and Beijing (+20.1 percent to US$68.87).
• New Delhi (-14.6 percent to US$110.83) and Shanghai (-14.3 percent to US$68.82) reported the largest RevPAR decreases for the year.

In December 2011, the Asia/Pacific region reported a 1.2-percent increase in occupancy to 65.1 percent, it rose 3.4 percent in ADR to US$145.96, and it was up 4.6 percent in RevPAR to US$95.07.

Europe hotel performance results

LONDON—The European hotel industry posted positive results in year-over-year metrics when reported in U.S. dollars, euros and British pounds for 2011, according to data compiled by STR Global.

Year-over-year, 2011 figures for Europe (U.S. dollars, euros and British pounds):

	Europe	% change
Occupancy	66.3%	+3.1%
ADR (U.S. dollars)	$140.05	+9.4%
ADR (euros)	€99.86	+2.6%
ADR (British pounds)	£87.13	+4.9%
RevPAR (U.S. dollars)	$92.80	+12.7%
RevPAR (euros)	€66.17	+5.8%
RevPAR (British pounds)	£57.73	+8.2%

Source: STR Global

“2011 was overall a good year for European hoteliers”, said Elizabeth Randall. “Europe saw occupancy and average room rate increases across all months of 2011, with August being the exception. August reported a slight ADR decline (-1 percent), which proved not to be a turning point in performance. Recent months, as well as December’s performance, still showed modest but in line with the usual expected performance increases, compared to the prior year. The outlook for 2012 is less certain, as the economic expectations have weakened throughout the later half and worries about the Euro-zone continue. Our latest Market Forecast, released in November, predicts to see positive RevPAR growth across 21 cities out of 34 European cities which we forecast”.

Highlights from key market performers for 2011 include (year-over-year comparisons, all currency in euros):

• Venice, Italy, reported the only double-digit occupancy increase, rising 13.8 percent to 68.1 percent.
• Malmo, Sweden, fell 7.0 percent in occupancy to 59.0 percent, posting the largest decrease in that metric, followed by Istanbul, Turkey, with a 4.0-percent decrease to 70.1 percent.
• Venice reported the largest growth in ADR, rising 13.1 percent to EUR275.13, followed by Paris, France (+12.5 percent to EUR237.04), and Zurich, Switzerland (+11.7 percent to EUR196.78).
• Cardiff, U.K. (-8.1 percent to EUR64.57) and Birmingham, U.K. (-7.8 percent to EUR62.10) reported the largest ADR decreases for the year.
• Venice jumped 28.6 percent in RevPAR to EUR187.35, achieving the largest increase in that metric, followed by Florence, Italy (+15.0 percent to EUR91.95), and Paris (+14.3 percent to EUR187.20).
• Birmingham reported the largest RevPAR decrease for 2011, falling 7.6 percent to EUR42.36.

Performances of key countries in 2011 (all monetary units in local currency):

Country	Occupancy	% change	ADR	% change	RevPAR	% change
Germany	65.1%	+2.7%	EUR92.04	+1.4%	EUR59.89	+4.2%
Italy	59.9%	+4.2%	EUR126.32	+3.3%	EUR75.68	+7.6%
Russia	57.7%	+5.0%	RUB4,896.88	+3.8%	RUB2,827.90	+9.0%
Spain	64.9%	+5.5%	EUR83.34	+0.8%	EUR54.07	+6.3%
United Kingdom	73.8%	+1.7%	GBP78.43	+3.0%	GBP57.87	+4.7%

*percentages are increases/decreases for 2011 vs. 2010

In December 2011 the region increased 2.2 percent in occupancy to 53.9 percent, rose 1.2 percent in ADR to EUR95.76, and was up 3.5 percent in RevPAR to EUR51.63.

Americas hotel performance results

LONDON and HENDERSONVILLE, Tennessee—The Americas region recorded positive results in the three key performance metrics when reported in U.S. dollars for 2011, according to data compiled by STR and STR Global.

In 2011, the Americas region reported a 4.2-percent increase in occupancy to 60.2 percent, a 3.8-percent gain in average daily rate to US$104.26, and an 8.2-percent jump in revenue per available room to US$62.79.

Among the key markets in the region, Santiago, Chile, reported the largest occupancy increase, rising 9.4 percent in occupancy to 71.5 percent, followed by Mexico City, Mexico (+7.9 percent to 62.5 percent), and Miami, Florida (+7.4 percent to 75.6 percent). Vancouver, Canada, experienced the largest occupancy decrease, falling 1.9 percent to 66.6 percent.

Three markets achieved double-digit ADR increases for the year: Sao Paulo, Brazil (+24.2 percent to US$141.54); San Francisco, California (+13.9 percent to US$155.14); and Rio de Janeiro, Brazil (+13.0 percent to US$205.23). Vancouver ended the year virtually flat in ADR with a 0.9-percent decrease to US$143.84, reporting the only decrease in that metric.

Sao Paulo (+27.8 percent to US$96.16) and Rio de Janeiro (+21.1 percent to US$155.35) experienced the largest RevPAR increases in 2011. Vancouver was the only market to report a RevPAR decrease, falling 2.7 percent to US$95.74.

Performances of key countries in 2011 (all monetary units in local currency):

	Occupancy	% change	ADR	% change	RevPAR	% change
Brazil	68.5%	+2.4%	BRL234.66	+15.0%	BRL160.76	+17.9%
Canada	61.9%	+1.7%	CAD127.94	-0.6%	CAD79.18	+1.1%
Mexico	56.8%	+3.4%	MXN1,277.04	-0.8%	MXN725.85	+2.6%
United States	60.1%	+4.4%	USD101.64	+3.7%	USD61.06	+8.2%

*percentages are increases/decreases for 2011 vs. 2010

In December 2011, the Americas region increased 3.9 percent in occupancy to 48.0 percent, rose 2.8 percent in ADR to US$103.01, and was up 6.8 percent in RevPAR to US$49.40.

Middle East/Africa hotel performance results

LONDON—The Middle East/Africa region reported mostly negative performance results in 2011 when reported in U.S. dollars, according to data compiled by STR Global.

In 2011, the region reported a 6.8-percent decrease in occupancy to 57.1 percent, a 5.3-percent increase in average daily rate to US$162.81 and a 1.8-percent decrease in revenue per available room to US$92.99.

“Due to the Arab Spring starting early 2011 across Northern Africa, the performances between Africa and the Middle East differ greatly”, said Elizabeth Randall. “Africa reported declining occupancy for all months in 2011, with average room rates declining throughout the latter half of the year. The Africa results were further impacted by supply increases in South Africa and the FIFA World Cup in 2010”.

“The Middle East reported occupancy and average-room-rate improvements driven from the strong demand growth (+9.0 percent), the highest growth rate for the global regions, and the highest yearly growth achieved since the last seven years”, Randall said.

Highlights among the region’s key markets for 2011 include (year-over-year comparisons, all currency in U.S. dollars):

• Abu Dhabi, United Arab Emirates, reported the largest growth in occupancy, increasing 9.9 percent to 64.8 percent, followed by Dubai, United Arab Emirates, with a 7.0-percent increase to 75.4 percent.
• Cairo, Egypt, fell 44.9 percent in occupancy to 36.1 percent, posting the largest decrease in that metric, followed by Beirut, Lebanon, with a 12.9-percent decrease to 56.2 percent.
• Jeddah, Saudi Arabia (+6.9 percent to US$203.51), and Riyadh, Saudi Arabia (+6.6 percent to US$271.67) reported the largest ADR increases for the year.
• Sandton, South Africa, and surrounding areas, fell 19.5 percent to US$130.41 in ADR, experiencing the largest decrease in that metric.
• Dubai achieved the largest RevPAR increase, jumping 10.7 percent to US$168.64.
• Cairo fell 49.2 percent in RevPAR to US$42.71, reporting the largest decrease for the year.

Performances of key countries in 2011 (all monetary units in local currency):

Country	Occupancy	% change	ADR	% change	RevPAR	% change
Egypt	44.2%	-38.8%	EGP435.43	-7.4%	EGP192.52	-43.3%
Saudi Arabia	58.2%	+8.6%	SAR776.25	+8.0%	SAR452.01	+17.2%
South Africa	55.8%	+0.1%	ZAR841.65	-10.1%	ZAR469.46	-10.0%
United Arab Emirates	71.4%	+7.9%	AED739.26	-0.9%	AED527.64	+6.8%

*percentages are increases/decreases for 2011 vs. 2010

In December 2011, the region reported a 3.2-percent decrease in occupancy to 56.4 percent, a 4.9-percent increase in ADR to US$175.67 and a 1.5-percent rise in RevPAR to US$99.03.