The U.S. hotel industry reported positive results in the three key performance metrics during May 2015, according to data from STR, Inc.
In year-over-year results, the U.S. hotel industry’s occupancy was up 0.8 percent to 67.5 percent; its average daily rate rose 5.0 percent to US$120.64; and its revenue per available room increased 5.9 percent to US$81.43.
“May 2015 broke the occupancy record for the month, and demand broke an unprecedented 104 million room nights,” said Jan Freitag, STR’s senior VP of strategic development. “Annualized occupancy is still at 65.0 percent, so all indicators are again at record levels on an annual basis.”
Freitag also noted that RevPAR in the U.S. has increased for 63 consecutive months.
Among the Top 25 Markets, Denver, Colorado, reported the largest increases in each of the three key performance metrics. Occupancy in the market increased 6.1 percent to 80.6 percent; ADR was up 15.0 percent to US$123.86; and RevPAR rose 22.0 percent to US$99.86.
Six additional markets reported double-digit RevPAR growth, led by Nashville, Tennessee (+17.4 percent to US$100.34), and Seattle, Washington (+13.2 percent to US$111.66).
In addition to Denver, three Top 25 Markets posted a double-digit ADR increase: New Orleans, Louisiana (+12.5 percent to US$162.09); Nashville (+11.5 percent to US$128.42); and Chicago, Illinois (+11.4 percent to US$163.53).
“The largest markets had a great start to the summer with occupancy over 76.0 percent and ADR US$30.00 higher than the U.S. average,” Freitag said. “RevPAR growth (+6.5 percent) was again leading all other markets (+5.4 percent) and was driven by ADR growth (+5.2 percent).”
Houston, Texas, reported the largest decreases in the three key performance measurements. Occupancy in Houston dipped 6.0 percent to 71.4 percent; ADR was down 2.5 percent to US$121.40; and RevPAR decreased 8.3 percent to US$86.67.
New York, New York, was the only other market to show decreases in each of the three key performance metrics. Occupancy in the market dipped 1.2 percent to 89.4 percent; ADR was down 0.9 percent to US$281.05; and RevPAR dropped 2.2 percent to US$251.38.
Americas hotel results for May 2015
The Americas region recorded positive results in the three key performance metrics when reported in U.S. dollars during May 2015. Compared to May 2014, the Americas region reported a 0.5-percent increase in occupancy to 67.1 percent, a 4.1-percent increase in average daily rate to US$121.26 and a 4.7-percent increase in revenue per available room to US$81.40.
Among the key markets in the region, San Juan, Puerto Rico, reported the largest occupancy increase, up 7.1 percent to 81.7 percent.
Santiago, Chile (-14.1 percent to 57.4 percent), and Sao Paulo, Brazil (-10.3 percent to 65.3 percent), were the only two markets to experience double-digit decreases in occupancy.
Chicago, Illinois, posted the only double-digit ADR increase, rising 11.4 percent to US$163.53.
Rio de Janeiro, Brazil (-29.4 percent to US$143.64), and Sao Paulo (-26.3 percent to US$112.43) experienced the largest decreases in ADR.
Chicago reported the largest RevPAR growth, up 12.7 percent to US$127.54. Two other markets posted double-digit increases in RevPAR: Washington, D.C.-Maryland-Virginia (+10.5 percent to US$134.11), and San Juan (+10.1 percent to US$136.57).
Rio de Janeiro (-35.3 percent to US$87.24) and Sao Paulo (-33.8 percent to US$73.40) reported the largest decreases in RevPAR.
Middle East/Africa hotel results for May 2015
The Middle East/Africa region reported mixed year-over-year results in the three major performance metrics during May 2015 when reported in U.S. dollars. The region reported a 3.0-percent increase in occupancy to 65.1 percent, a 5.7-percent drop in average daily rate to US$142.54 and a 2.9-percent decrease in revenue per available room to US$92.81.
When looking at the three Middle East/Africa subregions, Northern Africa posted the largest increase in occupancy (+15.6 percent to 61.6 percent) and the only increase in RevPAR (+8.7 percent to US$53.96). None of the subregions showed an increase in ADR.
Southern Africa reported the largest declines in ADR (-9.8 percent to US$110.14) and RevPAR (-7.5 percent to US$65.10).
Amongst the countries in the region, Egypt experienced the highest increases in all three key performance measurements. Occupancy in the country was up 29.7 percent to 62.6 percent; ADR rose 14.4 percent to US$75.78; and RevPAR increased 48.3 percent to US$47.43. Egypt has continued to experience positive results since final travel advisories were lifted in August 2014 and tourist destinations were once again open for business. According to STR Global analysts, Cairo, Egypt, is a popular destination for Arabian travellers. Sharm el-Sheikh, Egypt, is a popular and reasonably-priced destination for Europeans.
Zimbabwe was the only other country to report a double-digit increase in RevPAR, up 12.5 percent to US$47.52. Occupancy in Zimbabwe increased 5.0 percent to 48.1 percent, and its ADR rose 7.2 percent to US$98.89.
Jordan experienced the largest decrease in occupancy, down 11.5 percent to 58.2 percent. Affected by an influx of refugees from neighbouring Syria, Jordan’s situation was felt most significantly by the hotel industry in its capital city (Amman).
Morocco reported the steepest declines in ADR (-18.4 percent to US$102.18) and RevPAR (-22.3 percent to US$64.68). Moroccan international demand has been affected by the French economy, which has not fared favourably recently.
Highlights amongst the Middle East/Africa region’s key markets for May 2015 include (year-over-year comparisons, all currency in U.S. dollars):
- Cairo, Egypt, reported the largest increase in occupancy, up 50.4 percent to 63.5 percent.
- Amman, Jordan (-16.9 percent to 61.6 percent), and Manama, Bahrain (-12.1 percent to 50.1 percent), were the two markets to experience double-digit occupancy decreases.
- Doha, Qatar, posted the largest increase in ADR, up 8.2 percent to US$192.90.
- Amman saw the largest drop in ADR, down 15.8 percent to US$157.74, followed by Sandton, South Africa and surrounding areas (-13.0 percent to US$98.15), and Muscat, Oman (-10.3 percent to US$168.33).
- Cairo recorded the largest rise in RevPAR, up 58.6 percent to US$64.97. No other market reported double-digit RevPAR growth.
- Amman experienced the largest decrease in RevPAR, down 30.0 percent to US$97.10.
Europe hotel results for May 2015
The European hotel industry posted mixed results in year-over-year metrics when reported in U.S. dollars, Euros and British pounds for May 2015. According to STR Global analysts, a weakening Euro led to varied performance amongst Europe’s four subregions. Aided by the weakening Euro, Northern Europe and Southern Europe each reported double-digit growth in ADR and RevPAR.
Northern Europe saw a 0.4-percent increase in occupancy to 78.0 percent, a 14.1-percent rise in ADR to EUR119.06 and a 14.6-percent increase in RevPAR to EUR92.87.
Southern Europe reported a 3.2-percent rise in occupancy to 73.6 percent, a 10.0-percent increase in ADR to EUR116.84 and a 13.5-percent rise in RevPAR to EUR86.02.
Amongst countries in Europe, Slovakia experienced the only double-digit increase in occupancy, up 11.8 percent to 68.0 percent.
Israel saw the largest decrease in occupancy, down 6.1 percent to 73.5 percent. Israel also was one of four countries in Europe to post an ADR increase of more than 15.0 percent, rising 23.0 percent to EUR188.69.
The three other countries to report an ADR increase of more than 15.0 percent were: Czech Republic (+18.0 percent to EUR95.85); United Kingdom (+16.7 percent to EUR121.22); and Italy (+16.6 percent to EUR154.46).
Seven countries recorded RevPAR increases of greater than 15.0 percent: Czech Republic (+27.8 percent to EUR79.55); Italy (+20.9 percent to EUR116.98); Ireland (+18.3 percent to EUR96.37); United Kingdom (+16.8 percent to EUR96.15); Bulgaria (+16.4 percent to EUR31.42); Slovakia (+16.3 percent to EUR40.80); and Israel (+15.5 percent to EUR138.69).
Performance in the Czech Republic was lifted by the Ice Hockey World Championship held in Prague and Ostrava.
Russia reported the largest decreases in ADR (-26.8 percent to EUR86.45) and RevPAR (-22.0 percent to EUR47.22). The country continues to feel the effects of the devaluation of the Russian Ruble as well as low oil prices and government sanctions.
Highlights from key market performers for May 2015 include (year-over-year comparisons, all currency in Euros):
- Two markets recorded double-digit occupancy increases: Bratislava, Slovakia (+10.9 percent to 70.1 percent), and Madrid, Spain (+10.4 percent to 81.6 percent).
- Tel Aviv, Israel, reported the largest occupancy decrease, falling 8.2 percent to 79.0 percent.
- Milan, Italy, posted the largest increases in ADR (+35.8 percent to EUR167.74) and RevPAR (+35.8 percent to EUR119.38) as May was the first month of Expo Milano 2015.
- Five other markets reported ADR increases of more than 15.0 percent: Manchester, England (+21.3 percent to EUR104.16); Tel Aviv (+19.1 percent to EUR231.92); Prague, Czech Republic (+18.5 percent to EUR100.89); Zurich, Switzerland (+15.7 percent to EUR225.51); and Dublin, Ireland (+15.2 percent to EUR115.65).
- In addition to Milan, three other markets reported RevPAR increases of more than 20.0 percent: Prague (+25.7 percent to EUR86.54); Madrid (+25.6 percent to EUR82.04); and Manchester (+23.3 percent to EUR82.72).
- Saint Petersburg, Russia, reported the largest decreases in ADR (-44.7 percent to EUR86.04) and RevPAR (-40.4 percent to EUR60.82).
- Moscow, Russia, also reported ADR and RevPAR declines of more than 15.0 percent. ADR in the market was down 19.9 percent to EUR95.60, and RevPAR fell 17.8 percent to EUR57.56.
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