Asia Pacific
The hotel industry in the Asia Pacific region reported positive results in the three key performance metrics during the second quarter of 2017, according to data from STR.
U.S. dollar constant currency, Q2 2017 vs. Q2 2016
Asia Pacific
- Occupancy: +3.1% to 70.1%
- Average daily rate (ADR): +0.9% to US$97.39
- Revenue per available room (RevPAR): +4.1% to US$68.24
Local currency, Q2 2017 vs. Q2 2016
Australia
- Occupancy: -0.2% to 72.7%
- ADR: +1.8% to AUD176.61
- RevPAR: +1.6% to AUD128.43
STR analysts note that the country’s demand growth (+1.5%) was somewhat muted in comparison with previous quarters. That led to supply growth (+1.7%) factoring more prominently into overall results. On a 12-month moving average, supply growth has reached 1.7%, which is the highest level in the country since 1999. At the market level, the largest year-over-year supply increases came in Perth (+9.8%) and Brisbane (+5.0%). In terms of performance, Sydney led in absolute values with occupancy at 83.9% (+1.1%) and ADR at AUD213.91 (+6.3%), and STR analysts believe the recently re-opened Sydney International Convention Centre will further bolster the market’s demand, specifically in the Meetings, Incentives, Conferences, and Events (MICE) industry.
China
- Occupancy: +4.8% to 69.5%
- ADR: +0.6% to CNY522.78
- RevPAR: +5.5% to CNY363.23
The absolute occupancy level was the highest for a Q2 in China since 2006. Demand grew 8.1% during what STR analysts categorize as a shoulder season in China which precedes the country’s peak tourism months (July and August). Demand growth was especially pronounced around the Labour Day holiday. Among key market overall performance in China, Hangzhou and Guangzhou led in RevPAR growth at +16.3% and +11.3%, respectively.
Vietnam
- Occupancy: +9.1% to 70.6%
- ADR: +4.2% to VND2,777,499.59
- RevPAR: +13.7% to VND1,961,341.99
Performance in Vietnam continued to trend upward, and the absolute occupancy level was the highest for a Q2 in the country since 2007. Demand was up 10.9% for the quarter, mostly in the Transient segment (bookings of less than 10 rooms at once), indicating further growth in business travel and free independent travelers (FIT).
Middle East and Africa
The hotel industry in the Middle East reported nearly flat results during the second quarter of 2017, while hotels in Africa recorded growth across the three key performance metrics, according to data from STR.
U.S. dollar constant currency, Q2 2017 vs. Q2 2016
Middle East
- Occupancy: -0.1% to 62.4%
- Average daily rate (ADR): +0.8% to US$169.67
- Revenue per available room (RevPAR): +0.6% to US$105.84
Africa
- Occupancy: +2.7% to 53.3%
- Average daily rate (ADR): +10.5% to US$101.20
- Revenue per available room (RevPAR): +13.5% to US$53.96
Local currency, Q2 2017 vs. Q2 2016
Egypt
- Occupancy: +13.9% to 46.8%
- ADR: +67.2% to EGP1,217.52
- RevPAR: +90.5% to EGP569.54
The country’s occupancy growth was due primarily to a comparison with a significantly low performance period during Q2 2016 (41.1%). Occupancy levels last year were greatly affected by the May 2016 EgyptAir plane crash and ensuing security concerns. Since the end of 2016, the country has shown signs of recovery with double-digit occupancy increases in six of seven months. According to STR analysts, the spike in the country’s ADR is consistent with high inflation levels.
Oman
- Occupancy: +10.1% to 49.6%
- ADR: +2.6% to OMR58.30
- RevPAR: +13.0% to OMR28.89
Despite the double-digit growth in occupancy, the absolute value in the metric was the fourth-lowest for a Q2 in Oman since 2004. STR analysts note that increased occupancy during the Ramadan period compounded by the shift of Eid al-Fitr into Q2 this year contributed to the positive result.
Tunisia
- Occupancy: +31.6% to 48.7%
- ADR: -11.4% to TND143.94
- RevPAR: +16.6% to TND70.06
STR analysts point to Tunisia as another example of significant occupancy growth due to a low comparison level from the previous year. Steep performance declines were consistent during the first half of 2016 due to lingering security concerns in the country, but June 2017 marked 12 consecutive months with double-digit increases in occupancy. Rates have been consistently cheaper during that time. In May, Tunisia Ministry officials stated that bookings for the summer months were rising, especially from Russia.
Europe
The hotel industry in Europe reported positive results in the three key performance metrics during the second quarter of 2017, according to data from STR.
Euro constant currency, Q2 2017 vs. Q2 2016
Europe
- Occupancy: +2.1% to 75.1%
- Average daily rate (ADR): +4.4% to EUR114.10
- Revenue per available room (RevPAR): +6.5% to EUR85.67
Local currency, Q2 2017 vs. Q2 2016
Germany
- Occupancy: -0.8% to 73.8%
- ADR: -0.4% to EUR101.24
- RevPAR: -1.1% to EUR74.76
Supply growth (+1.1%) played a role in the overall performance decrease for the country, reaching 1% for the first time since Q4 2014. Despite the performance at the national level, Q2 RevPAR growth was strong in Cologne(+14.9%) and Hamburg (+14.5%). Performance in Cologne was due to large events such as Art Cologne (April) and the IIHF Ice Hockey World Championship (May). Hamburg’s levels received a lift ahead of the G20 summit in early July.
Netherlands
- Occupancy: +3.9% to 79.5%
- ADR: +6.0% to EUR129.19
- RevPAR: +10.1% to EUR102.72
The absolute occupancy level was the highest for a Q2 in the Netherlands since 2006. Performance growth was especially pronounced in April (RevPAR: +14.2%). At the market level, Amsterdam reported double-digit RevPAR growth (+10.5%) for the quarter, due primarily to a 7.5% lift in ADR to EUR164.91.
United Kingdom
- Occupancy: +1.0% to 79.6%
- ADR: +5.2% to GBP94.22
- RevPAR: +6.3% to GBP75.05
STR analysts note that the devaluation of the pound continues to drive inbound travel and stronger domestic tourism in the U.K. At the market level, London recorded an 8.4% rise in RevPAR to GBP127.33, due primarily to a 6.4% increase in ADR to GBP152.70. The market saw only moderate declines in occupancy following the 3 June terrorist attack at London Bridge. Performance growth soon returned and was boosted around Eid Mubarak as London typically welcomes a high volume of visitors from the Middle East during the holiday. Q2 performance growth for Regional U.K. was lower (RevPAR: +4.8%).
Central and South America
The hotel industry in the Central/South America region reported occupancy growth and nearly flat room rates during Q2 2017, according to data from STR.
U.S. dollar constant currency, Q2 2017 vs. Q2 2016
Central/South America
- Occupancy: +1.0% to 54.2%
- Average daily rate (ADR): -0.3% to US$97.39
- Revenue per available room (RevPAR): +0.7% to US$52.75
Local currency, Q2 2017 vs. Q2 2016
Brazil
- Occupancy: -1.3% to 50.4%
- ADR: -8.1% to BRL260.74
- RevPAR: -9.3% to BRL131.52
Performance declines were anticipated for Brazil due to the current political and economic environment. Significant supply growth (+4.2% year over year) and a comparison with higher rate months prior to the 2016 Rio Olympics also played a role. That trend was most visible in Rio de Janeiro, where occupancy was down 12.5% and ADR dropped 18.0% in year-over-year comparisons.
Costa Rica
- Occupancy: +6.8% to 68.2%
- ADR: +12.8% to CRC76,300.47
- RevPAR: +20.4% to CRC52,067.53
The absolute occupancy level was the highest for a Q2 inCosta Rica since 2008. In addition to strong demand growth, continued flat supply helped occupancy and ADR levels for the fifth consecutive quarter. The double-digit ADR growth is in line with inflation levels in the country. At the market level, San Jose recorded strong RevPAR growth of 14.6%.
Panama
- Occupancy: +0.3% to 50.0%
- ADR: -7.0% to PAB92.85
- RevPAR: -6.7% to PAB46.40
The absolute occupancy level was the highest for a Q2 in Panama since 2013, but the ADR level was the lowest since 2006. ADR has decreased year over year for 12 straight months.
Canada
Canada’s hotel industry reported positive year-over-year results in the three key performance metrics during the second quarter of 2017, according to data from STR.
Compared with Q2 2016:
- Occupancy: +1.7% to 68.0%
- Average daily rate (ADR): +6.3% to CAD155.99
- Revenue per available room (RevPAR): +8.1% to CAD106.11
The absolute occupancy level was the highest for a Q2 in Canada since 2000. Earlier this summer, STR analysts forecasted continued performance growth for the country with demand helped by celebrations around the 150th anniversary of Confederation
Three provinces saw double-digit RevPAR growth for the quarter: Ontario (+12.3% to CAD113.64), Quebec (+10.7% to CAD121.30) and British Columbia (+10.5% to CAD129.12).
Overall, nine of the 12 reporting provinces registered a RevPAR increase for the quarter.
The Yukon Territory posted the only double-digit increase in ADR (+11.0% to CAD144.68).
Manitoba experienced the greatest rise in occupancy (+7.2% to 71.5%).
The Northwest Territories reported the steepest declines in occupancy (-8.5% to 57.6%) and RevPAR (-10.4% to CAD94.15).
Saskatchewan saw the largest drop in ADR (-5.3% to CAD120.50.
