LONDON - Hotels in the Middle East reported 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 April 2016 data from STR.
Compared with April 2015, the Middle East subcontinent reported a 1.8% decrease in occupancy to 71.1%. Average daily rate for the month was down 10.8% to US$174.18. Revenue per available room dropped 12.4% to US$123.79.
The Northern Africa and Southern Africa subcontinents experienced a 4.1% decrease in occupancy to 55.5%. However, average daily rate was up 10.4% to US$108.85, and RevPAR increased 5.8% to US$60.46.
Performance of featured countries for April 2016 (local currency, year-over-year comparisons):
- Kuwait reported decreases across the three key performance metrics: occupancy (-3.0% to 58.0%), ADR (-2.1% to KWD72.60) and RevPAR (-5.1% to KWD42.12). Supply in the country has grown 6.1% year to date, and Kuwait has experienced occupancy decreases in nine of 10 months following the June 2015 bombing of the Imam al-Sadiq Mosque. July 2015 was the only month during that period with positive occupancy performance due to Eid al-Fitr.
- Morocco reported an 8.2% decrease in occupancy to 57.4%, an 8.3% drop in ADR to MAD1,157.28 and a 15.9% drop in RevPAR to MAD664.24.
- Saudi Arabia recorded decreases in each of the three key performance indicators. Occupancy in the country fell 2.1% to 69.9%; ADR was down 7.4% to SAR600.36; and RevPAR dropped 9.3% to SAR419.36. Demand growth (+4.1%) failed to keep pace with supply (+6.3), and ADR reached its lowest level since July 2010.
Performance of featured markets for April 2016 (local currency, year-over-year comparisons):
- Abu Dhabi, United Arab Emirates, saw relatively flat occupancy performance (-0.7% to 76.3%) but double-digit decreases in ADR (-12.4% to AED496.16) and RevPAR (-13.0% to AED378.60). Occupancy remained steady as supply growth remained subdued at 3.3%. However, rate dipped to its lowest absolute level for the month of April since 2005.
- Johannesburg, South Africa, experienced double-digit growth in occupancy (+12.1% to 60.9%) and RevPAR (+21.6% to ZAR553.91). ADR in the market was up 8.5% to ZAR909.72. The market’s occupancy was helped by a 2.2% decrease in supply. The depreciation of the South African Rand against the U.S. dollar and inflation has led to 33 consecutive months of year-over-year ADR increases in Johannesburg.
- Riyadh, Saudi Arabia, reported decreases in each of the three key performance measurements: occupancy (-7.3% to 64.4%), ADR (-2.6% to SAR866.22) and RevPAR (-9.7% to SAR558.14). While Riyadh mirrors the performance of the entire country, the market did experience a high occupancy level of 92.0% on 19 April during the first day of the Saudi Arabian High Performance Computing Conference and Exhibition.
Europe hotel performance for April 2016
The European hotel industry recorded positive April 2016 results in the three key performance metrics when reported in euro constant currency. Compared with April 2015, Europe reported a 3.5% increase in occupancy to 71.4%, a 3.8% rise in average daily rate to EUR109.54 and a 7.4% lift in revenue per available room to EUR78.20.
The European hotel industry recorded positive April 2016 results in the three key performance metrics when reported in euro constant currency. Compared with April 2015, Europe reported a 3.5% increase in occupancy to 71.4%, a 3.8% rise in average daily rate to EUR109.54 and a 7.4% lift in revenue per available room to EUR78.20.
Performance of featured countries for April 2016 (local currency, year-over-year comparisons):
- Germany posted a 9.8% rise in occupancy to 73.9% as well as double-digit increases in ADR (+14.4% to EUR107.98) and RevPAR (+25.6% to EUR79.84). The country hosted a number of events during the month, including BAUMA (11-17 April), world trade fair for construction machinery, in Munich. According to STR analysts, Germany’s hotel industry is typically events driven, but the country also is becoming a more popular tourist destination. All three of Germany’s key performance indicators reached record-highs for April.
- Israel saw a 3.4% increase in occupancy to 71.2%, but a 3.5% drop in ADR to ILS910.15 kept RevPAR relatively flat (-0.1% to ILS648.15). Supply growth (+0.8%) in the country remained below 1.0% for the second consecutive month.
- The Netherlands reported increases across the three key performance metrics: occupancy (+1.1% to 78.4%), ADR (+7.5% to EUR122.76) and RevPAR (+8.7% to EUR96.24). At the market level, demand has grown 9.2% year to date in The Hague.
- Poland experienced double-digit growth in occupancy (+14.6% to 77.2%) and RevPAR (+23.2% to PLN208.62). ADR in the country was up 7.5% to PLN270.40. The country received a boost from the Poznan Motor Show (31 March-3 April) and the International Trade Fair Installations Equipment (25-28 April), also hosted in Poznan. Wroclaw also reported strong performance as the European Capital of Culture 2016.
Performance of featured markets for April 2016 (local currency, year-over-year comparisons):
- Athens, Greece, reported nearly flat occupancy (+0.1% to 69.6%) with increases in ADR (+1.2% to EUR105.06) and RevPAR (+1.3% to EUR73.11). STR analysts note that the early part of the year is normally quiet in Greece and subject to seasonality. The pick-up usually begins in the second quarter, and Athens showed evidence of that trend with its highest April occupancy since 2000. ADR reached its highest level for an April since 2008.
- Helsinki, Finland, saw double-digit increases in occupancy (+15.6% to 65.7%) and RevPAR (+21.8% to EUR65.48). ADR in the market rose 5.4% to EUR99.73. The absolute occupancy and RevPAR levels were the highest for an April in Helsinki since 2008. Statistics Finland reported a 2.9% first-quarter increase in foreign visitors to the country, including +37.1% from Spain and +35.3% from China.
- Manchester, England, experienced virtually flat occupancy (+0.1% to 79.1%) to go along with increases in ADR (+8.7% to GBP78.06) and RevPAR (+8.8% to GBP61.77). Performance was helped by events like the BMX Supercross World, which produced an absolute occupancy level of 93.2% on 9 April.
- Moscow, Russia, posted double-digit growth in occupancy (+13.8% to 65.9%) and RevPAR (+18.3% to RUB3,834.29). ADR in the market was up 4.0% to RUB5,815.51. Seven different days of the month showed occupancy above 80.0% as events such as MosBuild (5-8 April) boosted demand in the market.
Central/South America hotel performance
Hotels in the Central/South America region recorded positive results in two of the three key performance metrics when reported in U.S. dollar constant currency. Compared with April 2015, the Central/South America region reported a 1.5% decrease in occupancy to 56.4%. However, ADR was up 6.4% to US$93.39, and RevPAR grew 4.8% to US$52.62.
Hotels in the Central/South America region recorded positive results in two of the three key performance metrics when reported in U.S. dollar constant currency. Compared with April 2015, the Central/South America region reported a 1.5% decrease in occupancy to 56.4%. However, ADR was up 6.4% to US$93.39, and RevPAR grew 4.8% to US$52.62.
Performance of featured countries for April 2016 (local currency, year-over-year comparisons):
- Brazil reported decreases across the three key performance metrics: occupancy (-3.3% to 53.5%), ADR (-1.6% to BRL291.60) and RevPAR (-4.8% to BRL156.07). Demand growth (+0.3%) was relatively flat for the month, while the country’s supply (+3.7%) increased more than 3.0% for the eighth consecutive month. STR analysts believe that the strengthening of the Brazilian Real should bode well for the industry with a boost of international tourism expected for the Summer Olympics.
- Panama saw a 3.2% increase in occupancy to 53.6%, but an 11.3% drop in ADR to PAB101.31 pushed RevPAR down 8.5% to PAB54.26. Supply growth remained mostly flat at +0.1% for the second straight month, the lowest performance figures in the metric since April 2008. Even with the occupancy increase, absolute occupancy and rates have remained low after five consecutive years (2010-2014) of double-digit supply growth.
- Peru experienced decreases in occupancy (-10.3% to 63.7%) and RevPAR (-9.3% to PEN289.49). ADR in the country increased 1.1% to PEN454.44. April 2015 was the only April on record with occupancy above 70.0% in Peru, thus creating a difficult-to-match comparison. In addition, supply growth (+2.6%) has been above 2.0% in five consecutive months, while demand has dropped in nine straight months.
Performance of featured markets for April 2016 (local currency, year-over-year comparisons):
- Bogotá, Colombia, saw an 8.7% rise in occupancy to 60.6% with double-digit growth in ADR (+10.9% to COP298,891.99) and RevPAR (+20.6% to COP181,083.29). April was the 15th consecutive month with RevPAR growth in the market. While rate drove performance in 2015, both occupancy and rate have contributed thus far in 2016. Demand grew 12.5% in April, outpacing a 3.4% lift in supply.
- Buenos Aires, Argentina, reported a 7.8% increase in occupancy to 66.0% as well as a significant spike in ADR (+67.9% to ARS1,903.63) and RevPAR (+81.0% to ARS1,256.63). ADR has increased more than 50.0% year over year each month since the beginning of 2016 after the government lifted currency restrictions in the country in December. A second consecutive month with solid demand increases drove occupancy performance. STR analysts attribute the performance in part to a strong return of group demand.
- Cusco, Peru, experienced double-digit declines in occupancy (-18.4% to 57.8%) and RevPAR (-22.1% to PEN260.27). ADR was down 4.6% to PEN450.38. STR analysts attribute the performance to a significant supply increase specific to the Upscale and Midscale classes as well as demand declines in the Luxury and Upper Upscale classes.
