STR: EMEA, Americas, and US hotel performance for September 2015

According to hotel performance data compiled for September 2015 by STR Global, when compared to September 2014, Europe reported a 2.3% increase in occupancy to 80.7%, a 5.4% increase in average daily rate to EUR123.55 and a 7.8% increase in revenue per available room to EUR99.76.

In year-over-year results, the U.S. hotel industry’s occupancy increased 3.3% to 67.9%; its average daily rate was up 4.6% to US$122.02; and its revenue per available room increased 8.0% to US$82.82.

The Middle East/Africa region reported a 0.1% increase in occupancy to 64.9%, a 13.2% rise in average daily rate to US$158.98 and a 13.2% increase in revenue per available room to US$103.25.

Bahrain reported a 7.8% increase in occupancy to 59.3% as well as double-digit growth in ADR (+18.2% to BHD90.98) and RevPAR (+27.4% to BHD53.96). According to STR Global analysts, the upswing in year-over-year hotel performance came as a result of an earlier Eid al-Adha. Demand growth (+19.8%) outpaced supply growth (+11.2%), and hotels capitalized with higher rates.

Jordan saw occupancy drop 1.1% to 53.9%. However, ADR (+3.8% to JOD109.94) and RevPAR (+2.6% to JOD59.21) each increased. Jordan’s hotel industry has been affected by political unrest in the region. STR Global analysts note that international arrivals in the country are declining for the third consecutive year with Middle Eastern and European tourists accounting for a vast portion of the decrease. The slight upswing in September ADR and RevPAR came as a result of Eid al-Adha.

Mauritius recorded double-digit increases in occupancy (+16.8% to 75.7%) and RevPAR (+24.8% to MUR3,408.62). ADR in the country was up 6.8% to MUR4,505.18. Supply remained flat for the month, while demand surged 16.8% due to an influx of international arrivals from Europe and Asia.

Cairo, Egypt, posted double-digit increases in each of the three key hotel performance metrics. Occupancy increased 10.9% to 57.3%; ADR was up 13.3% to EGP875.04; and RevPAR rose 25.7% to EGP500.97. STR Global analysts attribute the performance to the return of international visitors to Egypt after the political unrest of late 2013 and early 2014. Travel resulting from Eid al-Adha also aided performance in the market.

Johannesburg, South Africa, saw a 4.7% increase in occupancy to 63.2%, a 7.8% rise in ADR to ZAR859.66 and a 12.9% increase in RevPAR to ZAR543.48. Year-to-date ADR growth (+10.8%) continues to drive performance in the market, while a high supply growth rate has affected absolute occupancy.

Lagos, Nigeria, reported double-digit growth across the three key performance measurements: occupancy (+17.6% to 45.5%); ADR (+16.5% to NGN44,633.18); and RevPAR (+37.1% to NGN20,324.11). Performance in Lagos has fluctuated throughout the year, and September performance was driven by an unbalance in demand growth (+22.6%) and supply (+4.2%). Year-to-date KPIs remain more modest in Lagos.

The European hotel industry recorded positive results in the three key performance metrics when reported in Euro constant currency. Compared to September 2014, Europe reported a 2.3% increase in occupancy to 80.7%, a 5.4% increase in average daily rate to EUR123.55 and a 7.8% increase in revenue per available room to EUR99.76.

Ireland posted a 2.5% increase in occupancy to 88.7% as well as double-digit growth in ADR (+16.9% to EUR119.63) and RevPAR (+19.8% to EUR106.06). For the month, Ireland was one of the strongest performing European countries in absolute occupancy and ADR. Demand has grown year to date by 5.3%, and occupancy in the country has eclipsed 80.0% in five consecutive months. Thanks to strong demand, ADR in Ireland has increased 15.3% year to date.

Italy reported a 9.7% rise in occupancy to 83.0% and double-digit increases in ADR (+13.1% to EUR162.86) and RevPAR (+24.1% to EUR135.13). Significant performance increases occurred in Milan, which hosted Fashion Week (23-29 September) and Expo Milano (1 May to 31 October). Absolute occupancy in the market reached 89.0%, and RevPAR increased year-over-year by 43.6%.

Russia experienced double-digit growth in occupancy (+16.5% to 69.7%) and RevPAR (+27.9% to RUB3,574.12). ADR in the country was up 9.8% to RUB5,128.55. According to STR Global analysts, the devaluation of the Russian Ruble has had a positive impact on hotels in Russia, and domestic travel has served as a main driver of growth in the industry. In addition, Sochi, a holiday destination, reported increases of 25.0% in occupancy and 40.9% in ADR.

The United Kingdom saw nearly flat occupancy (+0.3% to 85.3%) and increases in ADR (+5.5% to GBP96.46) and RevPAR (+5.8% to GBP82.27). England is hosting the Rugby World Cup (18 September to 31 October), and hotels in Cardiff, Twickenham, Newcastle and Leeds have seen the most significant RevPAR gains.

Bratislava, Slovakia, posted double-digit increases in occupancy (+10.2% to 76.3%) and RevPAR (+12.1% to EUR46.27). ADR in the market was up 1.7% to EUR60.62. The absolute occupancy level was the highest for any month in Bratislava since September 2007. According to Oxford Economics, Slovakia’s economic growth is expected to outperform the Eurozone.

Bucharest, Romania, reported increases across the three key performance metrics: occupancy (+2.7% to 79.8%), ADR (+7.4% to RON353.22) and RevPAR (+10.3% to RON281.70). RevPAR has grown year-over-year in Bucharest for 17 consecutive months.

Dublin, Ireland, saw a 2.3% increase in occupancy to 92.2% as well as double-digit growth in ADR (+17.5% to EUR122.91) and RevPAR (+20.2% to EUR113.31). For the month, Dublin ranked second amongst key European markets in absolute occupancy. While supply has remained fairly flat in the market, demand is up year-to-date by 5.9%.

Moscow, Russia, experienced double-digit increases in occupancy (+12.2% to 75.5%) and RevPAR (+16.1% to RUB4,414.00). ADR in the market was up 3.5% to RUB5,844.21. Moscow hosted two international conferences during the month: COMTRANS International Exhibition for Commercial Vehicles (8-12 September) and Textillegprom Federal Trade Fair (22-25 September). In U.S. dollar terms, ADR in Moscow has decreased 39.1% year to date, confirming to STR Global analysts that the devaluation of the Russian Ruble is providing a strong impact on hotels in the market.

Hotels in the Americas region recorded positive results in the three key performance metrics when reported in U.S. dollar constant currency. Compared to September 2014, the Americas region reported a 3.0% increase in occupancy to 67.6%; average daily rate was up 5.0% to US$121.89; and revenue per available room increased 8.1% to US$82.44.

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