Hotels in the Middle East reported negative results, while hotels in Africa recorded mixed results in the three key performance metrics when reported in U.S. dollar constant currency, according to January 2016 data from STR Global.
Compared with January 2015, the Middle East subcontinent reported a 3.8% decrease in occupancy to 70.3%. Average daily rate for the month was down 6.9% to US$197.20. Revenue per available room dropped 10.4% to US$138.60.
The Northern Africa and Southern Africa subcontinents experienced a 5.4% decrease in occupancy to 47.9%. However, average daily rate was up 9.4% to US$111.48, and RevPAR increased 3.5% to US$53.41.
Performance of featured countries for January 2016 (local currency, year-over-year comparisons):
- South Africa saw a 6.3% increase in occupancy to 57.4% as well as double-digit growth in ADR (+12.2% to ZAR1,254.81) and RevPAR (+19.3% to ZAR719.96). The country’s performance was pushed by solid demand growth (+7.2%) coupled with steady supply (+0.8%).
- Tunisia experienced a double-digit decrease in occupancy (-10.0% to 27.8%), but a significant rise in ADR (+22.0% to TND172.24) pushed RevPAR (+9.8% to TND47.96) for the month. Supply (-0.9%) remained fairly steady, but demand (-10.8%) decreased considerably. STR Global analysts believe Tunisia is still struggling to attract tourists after the Sousse attacks in June 2015 and that hoteliers are raising rates to compensate for a loss in demand.
- Tanzania reported an 8.2% drop in occupancy to 47.0% but major spikes in ADR (+34.2% to TZS315,869.17) and RevPAR (+23.2% to TZN148,335.46). Rate was the clear driver of RevPAR for the month as occupancy slipped to below 50% for the first time since 2010.
- Nigeria saw double-digit declines in occupancy (-14.7% to 40.7%) and RevPAR (-9.5% to NGN17,466.30). ADR in the country grew 6.1% to NGN42,911.30. STR Global analysts note that Nigeria’s economy is dependent on the oil market.
Performance of featured markets for January 2016 (local currency, year-over-year comparisons):
- Muscat, Oman, reported an 8.7% decline in occupancy to 63.8%, a 9.4% drop in ADR to OMR80.98 and a 17.3% decrease in RevPAR to OMR51.68. Supply growth (+2.0%) outweighed demand performance (-6.9%) for the month, creating a slower-than-usual start to the year in Muscat.
- Casablanca, Morocco, posted increases in each of the three key performance metrics: occupancy (+8.0% to 58.2%), ADR (+8.7% to MAD1,062.66) and RevPAR (+17.4% to MAD618.35). Absolute levels in the market fell in line with usual January performance.
- Sharm el-Sheikh, Egypt, reported double-digit decreases across the three key performance indicators: occupancy (-54.7% to 24.8%), ADR (-18.9% to EGP406.16) and RevPAR (-63.3% to EGP100.92). Hoteliers cut prices in the market, but the decline in occupancy was too great to overcome. According to STR Global analysts, Sharm el-Sheikh has once again lost its attractiveness due to the October 2015 plane crash in the Sinai Peninsula.
Europe hotel results
The European hotel industry recorded positive results in the three key performance metrics when reported in Euro constant currency. Compared with January 2015, Europe reported a 1.4% increase in occupancy to 54.7%, a 1.5% rise in average daily rate to EUR100.52 and a 3.0% lift in revenue per available room to EUR55.03.
Performance of featured countries for January 2016 (local currency, year-over-year comparisons):
- Belgium saw a 2.1% dip in occupancy to 55.5%, but a 3.1% rise in ADR to EUR97.34 pushed a 0.9% increase in RevPAR to EUR54.04. The absolute RevPAR level was the highest for a January in Belgium since 2008. The market is showing small signs of recovery following the Paris terrorist attacks in November.
- Russia posted a 2.0% increase in occupancy to 42.5% as well as double-digit growth in ADR (+11.0% to RUB5,078.63) and RevPAR (+13.2% to RUB2,158.66). The country’s hotel market has posted eight consecutive months of double-digit revenue growth. According to STR Global analysts, that streak has been helped by the weakness of the Russian Ruble and a subsequent increase in domestic tourism.
- Switzerland reported decreases across the three key performance metrics: occupancy (-1.7% to 53.0%), ADR (-3.3% to CHF254.34) and RevPAR (-4.9% to CHF134.84). STR Global analysts note that performance results still reflect the Swiss National Bank’s January 2015 decision to unpeg the Swiss Franc from the Euro.
- Turkey experienced a 6.2% decline in occupancy to 47.6%, but double-digit growth in ADR (+10.0% to TRY259.41) drove up RevPAR (+3.2% to TRY123.44) for the month. Compounding on a traditionally slow month in Turkey, security concerns related to recent terrorist attacks, and the close proximity to the Syrian refugee crisis kept absolute occupancy below 50.0%. Hoteliers raised rates in January with demand in decline.
Performance of featured markets for January 2016 (local currency, year-over-year comparisons):
- Budapest, Hungary, posted increases in each of the three key performance metrics: occupancy (+1.8% to 48.8%), ADR (+6.3% to HUF21,745.38) and RevPAR (+8.3% to HUF10,621.66). STR Global analysts labelled the month’s performance as “good” during a traditionally slow season.
- Dublin, Ireland, experienced a 7.3% lift in occupancy to 63.7% as well as double-digit growth in ADR (+19.4% to EUR104.36) and RevPAR (+28.0% to EUR66.51). Strong demand experienced in the last two years has greatly affected hotels in Dublin and allowed hoteliers to raise rates.
- Tel Aviv, Israel, reported increases in occupancy (+2.9% to 58.3%) and RevPAR (+3.2% to ILS466.76). ADR (+0.2% to ILS800.02) in the market remained steady. The overall performance was average for the market’s slow season.
- Belgrade, Serbia, saw substantial increases in occupancy (+55.2% to 42.0%) and RevPAR (+31.0% to RSD3,795.31). ADR for the month dropped 15.6% to RSD9,030.26. Significant supply growth (+9.3%) outpaced demand performance (+5.3%) in 2015. Absolute occupancy for January remained in line with recent months but was a significant improvement from a low base in January 2015.
Central/South America hotel results
Hotels in the Central/South America region reported positive results in two of the three key performance metrics when reported in U.S. dollar constant currency. Compared with January 2015, the Central/South America region reported a 2.8% decrease in occupancy to 54.5%. However, average daily rate grew 10.7% to US$95.34, and revenue per available room increased 7.6% to US$51.94.
Performance of featured countries for January 2016 (local currency, year-over-year comparisons):
- Colombia posted a 4.9% increase in occupancy to 51.0% as well as double-digit growth in ADR (+14.8% to COP293,829.40) and RevPAR (+20.4% to COP149,809.02). STR Global analysts have seen a stronger emphasis on rate increases in the country due to inflation and a weakened Colombian peso.
- Costa Rica saw increases in occupancy (+3.9% to 73.9%) and RevPAR (+4.0% to CRC63,663.23). ADR in the country remained nearly flat (+0.1% to CRC86,130.77). Escalating demand (+4.8%) and steady supply (+0.9%) allowed hoteliers in Costa Rica to build on a strong 2015.
- Panama reported growth in occupancy (+8.1% to 56.0%) and RevPAR (+4.4% to PAB58.80). ADR dropped 3.5% to PAB105.07. Last year was the first since 2007 where demand growth in Panama outweighed supply, and that trend continued in January with demand growth at +12.2% and supply at +3.8%.
Performance of featured markets for January 2016 (local currency, year-over-year comparisons):
- Buenos Aires, Argentina, reported a 13.8% drop in occupancy to 51.1%, but a 52.4% spike in ADR to ARS1,739.40 drove a 31.4% increase in RevPAR to ARS888.51. The significant jump in rate came as new government policies put in place in December resulted in a sharp devaluation of the Argentine Peso.
- Rio de Janeiro, Brazil, experienced a 1.8% decrease in occupancy to 68.0% but increases in ADR (+6.9% to BRL493.09) and RevPAR (+5.0% to BRL335.06). STR Global analysts note that rate was pushed by the week following New Year’s.
