STR: EMEA and Central/South America hotel performance for October 2017

LONDON - Hotels in the Middle East reported mixed performance results during October 2017, while hotels in Africa posted growth across the three key performance indicators, according to data from STR.

Countries of focus: Bahrain, Egypt and Kenya
U.S. dollar constant currency, October 2017 vs. October 2016

Middle East

• Occupancy: +3.3% to 64.9%
• Average daily rate (ADR): -4.0% to US$163.27
• Revenue per available room (RevPAR): -0.8% to US$106.04

Africa
Occupancy: +7.6% to 62.5%
Average daily rate (ADR): +8.4% to US$105.89
Revenue per available room (RevPAR): +16.7% to US$66.14

Local currency, October 2017 vs. October 2016

Bahrain

• Occupancy: +9.2% to 49.2%
• ADR: -8.2% to BHD58.71
• RevPAR: +0.2% to BHD28.86

STR analysts note that the year-over-year increase in occupancy came in comparison with a low base from October 2016. The country’s absolute occupancy level was helped by a pair of events in Manama: the Federation of Afro-Asian Insurers and Reinsurers 25th Conference (9-11 October) and the Bahrain International Defence Exhibition and Conference (16-18 October). The absolute ADR level was the lowest for an October in Bahrain since 2006. 

Egypt

• Occupancy: +32.0% to 57.0%
• ADR: +73.6% to EGP1,151.26
• RevPAR: +129.3% to EGP656.07

The devaluation of the Egyptian pound led to the highest October ADR value on record for the country. Occupancy growth was inflated by a comparison with Egypt’s second-worst October occupancy month on record (43.2% in 2016). The country continues to recover from security concerns, and demand (roomnights sold) has grown by double digits in nine of 10 months in 2017. 

Kenya

• Occupancy: -26.4% to 40.7%
• ADR: -10.7% to KES11,937.82
• RevPAR: -34.2% to KES4,861.17

The absolute occupancy level was the lowest for any October on record, while ADR fell in line with recent trends. According to STR analysts, political struggles in the country have taken their toll on hotel demand (roomnights sold), and the steepest daily RevPAR declines occurred on the days around the election (26 October).

Central/South America hotel performance for October 2017
Hotels in the Central/South America region reported positive year-over-year results in the three key performance metrics during October 2017, according to data from STR.

Countries of focus: Argentina, Brazil and Ecuador 
U.S. dollar constant currency, October 2017 vs. October 2016

Central/South America 

• Occupancy: +7.3% to 60.6%
• Average daily rate (ADR): +13.0% to US$108.91    
• Revenue per available room (RevPAR): +21.3% to US$66.01

Local currency, October 2017 vs. October 2016

Argentina

• Occupancy: +10.0% to 69.7%
• ADR: +22.4% to ARS2,113.25
• RevPAR: +34.6% to ARS1,473.21

Nearly flat supply coupled with a significant increase in demand drove occupancy for the month, while the spike in ADR came as a result of inflation. STR analysts point out that if demand continues at the same level, Argentina will achieve total-year occupancy above 60% for the first time since 2011.  

Brazil

• Occupancy: +10.4% to 57.9%
• ADR: +2.5% to BRL281.23
• RevPAR: +13.1% to BRL162.84

Brazil experienced its first positive year-over-year RevPAR development since August 2016, the month of the Summer Olympics in Rio de Janeiro. STR analysts note that supply growth has started to slow since July 2017, especially compared with significant growth rates of the last three years. Overall in the past few months, Brazil has shown early signs of performance recovery, with the exception of Rio, which has experienced a -47.0% drop in RevPAR year to date.

Ecuador 

• Occupancy: -8.8% to 63.1%
• ADR: -18.8% to US$98.46
• RevPAR: -25.9% to US$62.14

Ecuador had experienced year-over-year growth in occupancy each month since January, but falling demand led to an occupancy decline in October. Rates, however, fell more significantly (-18.8%), mainly as a result of a high comparison base in October 2016. That month, the country hosted Habitat III, a United Nations Conference on Housing and Sustainable Urban Development, from 17-20 October. 

STR: Europe hotel performance for October 2017
Europe’s hotel industry reported positive results in the three key performance metrics during October 2017, according to data from STR.

Countries of focus: Czech Republic, Netherlands and Turkey
Euro constant currency, October 2017 vs. October 2016

Europe 

• Occupancy: +1.7% to 76.0%
• Average daily rate (ADR): +4.0% to EUR112.75
• Revenue per available room (RevPAR): +5.8% to EUR85.68

Local currency, October 2017 vs. October 2016

Czech Republic

• Occupancy: +3.6% to 84.3%
• ADR: +4.1% to CZK2,334.36
• RevPAR: +7.8% to CZK1,968.95

The absolute occupancy level was the highest for any October on record in the country. Levels were lifted by performance in Prague, which also set an October occupancy record (89.9%). The market hosted the World Sleep Congress from 7-11 October, and occupancy was above 90% on both 9 and 10 October. 

Netherlands

• Occupancy: +1.6% to 78.5%
• ADR: +5.9% to EUR124.60
• RevPAR: +7.6% to EUR97.80

STR analysts note that the country has shown consistent occupancy growth throughout 2017. At the market level, Amsterdam (EUR134.17), Utrecht (EUR85.81) and The Hague (EUR83.26) recorded the highest actual RevPAR levels.

Turkey

• Occupancy: +22.9% to 64.2%
• ADR: +15.9% to TRY272.08
• RevPAR: +42.5% to TRY174.55

The country continues to recover from the 2016 coup d'etat attempt, which contributed to a 52.2% October occupancy level last year. That level was the lowest for an October in Turkey since 2001. This October was the fourth consecutive month with double-digit occupancy growth in the country.