Hotels in the Middle East reported mostly negative results, while hotels in Africa reported mixed results in the three key performance metrics when reported in U.S. dollar constant currency, according to May 2016 data from STR.
Compared with May 2015, the Middle East subcontinent reported nearly flat occupancy (+0.1% to 69.1%). Average daily rate for the month was down 4.7% to US$156.75, and revenue per available room fell 4.6% to US$108.34.
Africa experienced a 5.8% decrease in occupancy to 56.1%. However, average daily rate was up 8.8% to US$100.16, and RevPAR increased 2.5% to US$56.15.
Performance of featured countries for May 2016 (local currency, year-over-year comparisons):
- Egypt saw a 15.7% drop in occupancy to 52.8%, but a 24.8% rise in ADR to EGP721.66 drove a 5.3% increase in RevPAR to EGP381.00. According to STR analysts, a significant decrease in the country’s overall demand was due to political unrest and the EgyptAir plane crash on 19 May. However, hoteliers pushed rates and managed to increase RevPAR for the second consecutive month. Performance varied at the market level. Cairo reported an occupancy increase of 10.6%, while Sharm el Sheikh (-39.7%) and the Red Sea Resorts (-40.7%) saw significant declines in the metric.
- Oman reported decreases across the three key performance metrics: occupancy (-5.0% to 49.4%), ADR (-8.7% to OMR56.54) and RevPAR (-13.3% to OMR27.95). The absolute RevPAR level was the worst for a May in Oman since 2011, caused in part by a 9.9% increase in supply.
- Tunisia experienced decreases in occupancy (-11.7% to 42.5%) and RevPAR (-9.1% to TND68.43). ADR was up 2.9% to TND161.04. Like many North African countries, Tunisia has seen consistent and significant declines in demand following the terrorist attack in Sousse last year. Figures from the Tunisia Ministry of Tourism showed a 47.6% year-over-year decrease in the number of tourist receipts through April. Year to date, hotel demand in the country is down 12.8%.
Performance of featured markets for May 2016 (local currency, year-over-year comparisons):
- Amman, Jordan, saw an 8.5% increase in occupancy to 66.0% as well as double-digit growth in ADR (+11.2% to JOD123.14) and RevPAR (+20.7% to JOD81.30). Amman’s supply remained flat through the first five months of 2016 while demand has risen steadily. May produced the highest absolute occupancy since August 2014 and the highest ADR since May 2014, helped by the Jordan Forex Expo & Awards 2016 (30-31 May) and SOFEX Jordan global security conference and exhibition (9-12 May).
- Cape Town, South Africa, posted a 9.2% increase in occupancy to 60.0% as well as double-digit increases in ADR (+9.4% to ZAR1,260.55) and RevPAR (+19.4% to ZAR756.48). Demand has increased year over year for 10 consecutive months in the market as the weakened South African Rand made the country a cheaper destination for international tourists. In addition, supply has decreased slightly in each of the last four months.
- Jeddah, Saudi Arabia, experienced a 5.9% rise in occupancy to 78.4% as well as double-digit increases in ADR (+18.3% to SAR1,079.42) and RevPAR (+25.3% to SAR846.60). May was the strongest occupancy and rate month in Jeddah since September 2015, reversing a trend of negative performance since September 2015.
Europe hotel performance
The European hotel industry recorded mostly positive May 2016 results in the three key performance metrics when reported in euro constant currency, according to data from STR.
The European hotel industry recorded mostly positive May 2016 results in the three key performance metrics when reported in euro constant currency, according to data from STR.
Compared with May 2015, Europe reported nearly flat occupancy (-0.3 to 73.4%). However, a 2.1% rise in average daily rate to EUR114.28 drove a 1.7% increase in revenue per available room to EUR83.89.
Performance of featured countries for May 2016 (local currency, year-over-year comparisons):
- Belgium reported double-digit decreases in occupancy (20.8% to 62.7%) and RevPAR (-20.8% to EUR62.89) as ADR remained flat at EUR100.25. The performance is in line with the declines seen in April as the hotel industry is affected by security concerns in the country. However, the March terrorist attack appears to be having a larger impact on hotels in Brussels, where May occupancy was roughly 7% lower (55.8%) than the national average.
- The Czech Republic reported decreases across the three key performance metrics. Occupancy dipped 1.3% to 80.3%; ADR was down 8.4% to CZK2,375.54; and RevPAR dropped 9.6% to CZK1,906.72. Absolute levels for the month were solid but did not compare well with May 2015, when the International Ice Hockey Federation (IIHF) World Championship boosted the country’s hotel performance.
- Finland posted increases in each of the three metrics: occupancy (+2.3% to 63.8%), ADR (+5.3% to EUR98.82) and RevPAR (+7.8% to EUR63.03). According to Statistics Finland, the country saw an April year-to-date increase in inbound tourism from most of its key feeder markets. The strongest inbound tourism growth during that period came from China (+35%) and Spain (+25%). For May, hotel demand (+1.5%) outpaced supply (-0.8%).
- Spain recorded growth across the key performance metrics. Occupancy rose 4.1% to 76.6%; ADR was up 7.0% to EUR102.50; and RevPAR increased 11.4% to EUR78.56. RevPAR has increased year over year for 37 consecutive months in the country. Specifically during the last two months, STR analysts noted an upswing in Group demand, which rose 17.7% in April and 9.2% in May. The strongest overall May demand increases in Spain were reported in the Balearic Islands and the Canary Islands.
Performance of featured markets for May 2016 (local currency, year-over-year comparisons):
- Dublin, Ireland, saw a 0.7% dip in occupancy to 88.7% but double-digit increases in ADR (+19.2% to EUR136.87) and RevPAR (+18.4% to EUR121.44). The absolute ADR level was the highest on record for a May in Dublin, helped by Bruce Springsteen concerts at Croke Park on 27 May and 29 May. Overall, Dublin’s ADR has increased by double digits for 14 consecutive months.
- Frankfurt, Germany, reported increases across the three key performance indicators: occupancy (+4.9% to 70.8%), ADR (+0.8% to EUR125.65) and RevPAR (+5.8% to EUR89.01). Hotels in the market received a boost from the IFFA international meat-processing trade fair (7-12 May). RevPAR increased as much as 276.8% on 11 May.
- Lisbon, Portugal, experienced nearly flat occupancy (+0.2% to 88.3%) as well as double-digit growth in ADR (+11.8% to EUR112.34) and RevPAR (+12.0% to EUR99.21). Absolute RevPAR reached a record high for May, following a trend of double-digit growth since mid-2014.
- Saint Petersburg, Russia, posted a 5.4% increase in occupancy to 73.8% along with double-digit increases in ADR (+34.1% to RUB6,580.50) and RevPAR (+41.4% to RUB4,858.89). The performance can be linked to the IIHF World Championship.
Central/South America hotel performance
Hotels in the Central/South America region recorded mixed May 2016 results in the three key performance metrics when reported in U.S. dollar constant currency, according to data from STR.
Hotels in the Central/South America region recorded mixed May 2016 results in the three key performance metrics when reported in U.S. dollar constant currency, according to data from STR.
Compared with May 2015, the Central/South America region reported an 8.8% decrease in occupancy to 51.9%. Average daily rate was up 7.7% to US$88.86. Revenue per available room fell 1.8% to US$46.11.
Performance of featured countries for May 2016 (local currency, year-over-year comparisons):
- Costa Rica experienced growth in occupancy (+13.3% to 60.0%) and RevPAR (+8.0% to CRC37,509.43). ADR in the country was down 4.6% to CRC62,511.88. Occupancy increased year over year for the 14th consecutive month, and absolute occupancy reached at least 60.0% for the first May since 2008. On the other hand, ADR has decreased seven months in a row and 12 of the last 17 months overall. STR analysts believe that lower rates have attracted more visitors to the country.
- Ecuador saw double-digit declines in occupancy (-20.5% to 53.9%) and RevPAR (-25.6% to US$52.90). ADR dropped 6.4% to US$98.15. Occupancy has been generally down in Ecuador since the beginning of 2015, as the country has become a more expensive destination for neighboring countries like Colombia.
- El Salvador reported decreases in occupancy (-3.3% to 64.3%) and RevPAR (-2.3% to US$62.88). ADR was up 1.0% to US$97.80. STR analysts note that the country’s hotel performance has held up even with Zika Virus concerns in the region.
Performance of featured markets for May 2016 (local currency, year-over-year comparisons):
- Panama City, Panama, saw increases in occupancy (+9.1% to 50.2%) and RevPAR (+8.7% to PAB50.34). ADR was nearly flat (-0.4% to PAB100.33). After an extended period with significant supply growth between 2010 and 2015, growth in the metric has slowed to +0.3% in each of the last three months. And with consistently lower rates, demand has picked up significantly, reaching +9.4% in May.
- Rio de Janeiro, Brazil, experienced double-digit declines in occupancy (-23.1% to 44.0%) and RevPAR (-19.8% to BRL194.70). ADR in the market rose 4.3% to BRL442.67. In preparation of the Summer Olympics, Rio de Janeiro’s supply has grown by double-digits for 13 consecutive months. Demand was down 10.3% in May, and STR analysts cite fear of the Zika Virus as well as political and economic unrest in the country.
- Cartagena, Colombia, saw a 1.4 increase in occupancy to 50.6%. However, a 1.5% drop in ADR to COP322,560.48 kept RevPAR nearly flat (-0.2% to COP163,299.21). After a period of consistent double-digit growth, the market’s supply remained flat in May. At the same time, May is typically one of the slower months of the year for hotels in Cartagena.
