EUROPE
Europe’s hotel industry reported positive results in the three key performance metrics during July 2017, according to data from STR.
Euro constant currency, July 2017 vs. July 2016
Europe
- Occupancy: +2.6% to 78.5%
- Average daily rate (ADR): +4.3% to EUR118.30
- Revenue per available room (RevPAR): +7.0% to EUR92.84
Local currency, July 2017 vs. July 2016
Poland
- Occupancy: +1.5% to 78.2%
- ADR: -1.6% to PLN285.62
- RevPAR: -0.1% to PLN223.39
Demand outpaced supply in terms of growth in Poland, helping occupancy growth compensate for the decline in ADR. Warsaw recorded a 10.1% increase in RevPAR for the month, with occupancy up 8.0% and ADR up 1.9%. STR analysts note that the Polish capital’s performance was exceptionally high during the first six days of the month when it hosted the International Theatre Schools Festival.
Spain
- Occupancy: -0.6% to 80.7%
- ADR: +7.7% to EUR129.34
- RevPAR: +7.1% to EUR104.33
The country’s ADR level was significantly lifted by Madrid (+13.3%) and Barcelona(15.5%). STR analysts note that it is still too early to identify a potential impact on hotel performance from the 17 August terror attack in Barcelona.
Turkey
- Occupancy: +64.9% to 69.2%
- ADR: +8.9% to TRY330.83
- RevPAR: +79.5% to TRY229.04
Turkey’s hotel performance showed dramatic year-over-year increases due to a comparison with the month of the coup d’état attempt in 2016. Istanbul saw a 132.5% increase in RevPAR for the month, with occupancy up 97.0% and ADR up 18.0%. STR analysts expect a similar growth pattern for August as performance declines continued through that month last year.
MIDDLE EAST & AFRICA
Hotels in the Middle East reported negative results during July 2017, while hotels in Africa recorded growth across the three key performance metrics.
U.S. dollar constant currency, July 2017 vs. July 2016
Middle East
- Occupancy: -2.8% to 56.1%
- Average daily rate (ADR): -16.1% to US$134.00
- Revenue per available room (RevPAR): -18.4% to US$75.20
Africa
- Occupancy: +6.9% to 60.7%
- Average daily rate (ADR): +9.3% to US$97.81
- Revenue per available room (RevPAR): +16.8% to US$59.34
Local currency, July 2017 vs. July 2016
Bahrain
- Occupancy: -1.0% to 49.3%
- ADR: -11.5% to BHD64.91
- RevPAR: -12.4% to BHD32.03
Following performance increases in June boosted by post-Ramadan celebrations, Bahrain hotels saw sharp declines in July. Those decreases fell more in line with recent trends in the country, as RevPAR through July was down 6.9% compared with the first seven months of 2016.
Nigeria
- Occupancy: +12.1% to 47.9%
- ADR: +5.8% to NGN48,490.15
- RevPAR: +18.5% to NGN23,230.78
July was Nigeria’s strongest month thus far in 2017 thanks to a 16.7% increase in demand. According to STR analysts, strong events business in Lagos boosted occupancy and rate growth. Group (bookings of 10 or more rooms) RevPAR in the country rose 58.3% during the month.
Saudi Arabia
- Occupancy: -5.2% to 48.0%
- ADR: -31.6% to SAR625.78
- RevPAR: -35.2% to SAR300.14
Saudi Arabia’s performance declines followed a weak first half of 2017, and July year-to-date RevPAR is down 15.1%. STR analysts note that although the country’s hotel performance is typically lower during the summer months, the double-digit declines for July 2017 reflect the impacts of low oil prices and high hotel supply growth.
ASIA PACIFIC
Hotels in the Asia Pacific region reported positive results in the three key performance metrics during July 2017.
U.S. dollar constant currency, July 2017 vs. July 2016
Asia Pacific
- Occupancy: +3.8% to 74.4%
- Average daily rate (ADR): +1.9% to US$97.67
- Revenue per available room (RevPAR): +5.7% to US$72.66
Local currency, July 2017 vs. July 2016
Indonesia
- Occupancy: +11.1% to 68.0%
- ADR: -1.5% to IDR1,090,890.60
- RevPAR: +9.4% to IDR741,434.78
The absolute occupancy level was the highest for a July in Indonesia since 2012, while RevPAR reached its highest July level since 2011. With substantial demand increases in both the Transient and Group (bookings of 10 or more rooms at once) segments, STR analysts attribute the performance to routine post-Ramadan increases in corporate travel and MICE (meetings, incentives, conferences and exhibitions) business.
Japan
- Occupancy: +0.7% to 85.1%
- ADR: -0.4% to JPY15,229.18
- RevPAR: +0.2% to JPY12,966.69
Year-over-year performance has remained stable in Japan as solid demand growth has outpaced significant supply growth. According to the Japan National Tourism Organization, the country welcomed 16.4 million foreign visitors in the first seven months of the year, a 17.3% increase compared with the same time period last year. In terms of future supply development, Tokyo leads the way with nearly 5,000 hotel rooms set to enter the market over the next four years, followed by Osaka with more than 3,000 rooms.
Malaysia
- Occupancy: +12.1% to 73.7%
- ADR: +8.0% to MYR391.88
- RevPAR: +21.1% to MYR288.94
According to STR analysts, post-Ramadan demand routinely pushes hotel demand in Malaysia. Additionally, performance growth can be attributed to preparation for the August SEA Games in Kuala Lumpur.
