LONDON - Concluding with strong growth in March, the European hotel industry reported increases in each of the three key performance metrics during the first quarter of 2017, according to data from STR.
Euro constant currency, Q1 2017 vs. Q1 2016
Europe
Occupancy: +4.1% to 63.5%
Average daily rate (ADR): +2.3% to EUR100.94
Revenue per available room (RevPAR): +6.5% to EUR64.06
Local currency, Q1 2017 vs. Q1 2016
Occupancy: +4.1% to 63.5%
Average daily rate (ADR): +2.3% to EUR100.94
Revenue per available room (RevPAR): +6.5% to EUR64.06
Local currency, Q1 2017 vs. Q1 2016
Baku, Azerbaijan
Occupancy: +74.9% to 49.5%
ADR: +25.5% to AZN171.46
RevPAR: +119.5% to AZN84.85
With one of the world’s most improved economies in 2017, rising 13 spots in the World Economic Forum’s global ranking, the Azerbaijani capital experienced massive uplifts in hotel performance in Q1. While ADR increased, exchange rate fluctuations have made the destination cheaper for many international visitors. STR analysts note that the performance growth is particularly impressive considering the market experienced significant supply growth of 18.1% in 2015 and 6.8% in 2016. Looking ahead, Baku currently has two new hotels In Construction and another pair in the Planning stage.
Occupancy: +74.9% to 49.5%
ADR: +25.5% to AZN171.46
RevPAR: +119.5% to AZN84.85
With one of the world’s most improved economies in 2017, rising 13 spots in the World Economic Forum’s global ranking, the Azerbaijani capital experienced massive uplifts in hotel performance in Q1. While ADR increased, exchange rate fluctuations have made the destination cheaper for many international visitors. STR analysts note that the performance growth is particularly impressive considering the market experienced significant supply growth of 18.1% in 2015 and 6.8% in 2016. Looking ahead, Baku currently has two new hotels In Construction and another pair in the Planning stage.
Spain
Occupancy: +2.3% to 67.5%
ADR: +4.8% to EUR100.76
RevPAR: +7.2% to EUR68.06
March 2017 marked Spain’s 47th consecutive month of year-over-year RevPAR growth. Despite a slight slowdown in occupancy and ADR compared with January and February, Spain still posted a 3.6% increase in RevPAR in March. Barcelona was the standout market in Q1 with a 13.6% increase in RevPAR that was equal parts occupancy and ADR growth. March was a particularly strong month for Barcelona, with occupancy up 8.0% and ADR up 18.0%. Performance was boosted by the Mobile World Congress (27 February through 2 March).
Occupancy: +2.3% to 67.5%
ADR: +4.8% to EUR100.76
RevPAR: +7.2% to EUR68.06
March 2017 marked Spain’s 47th consecutive month of year-over-year RevPAR growth. Despite a slight slowdown in occupancy and ADR compared with January and February, Spain still posted a 3.6% increase in RevPAR in March. Barcelona was the standout market in Q1 with a 13.6% increase in RevPAR that was equal parts occupancy and ADR growth. March was a particularly strong month for Barcelona, with occupancy up 8.0% and ADR up 18.0%. Performance was boosted by the Mobile World Congress (27 February through 2 March).
United Kingdom
Occupancy: +2.6% to 70.6%
ADR: +4.1% to GBP83.73
RevPAR: +6.8% to GBP59.12
U.K. hotels continued a run of positive year-over-year performance that started late in 2016. March was the strongest growth month of the quarter (RevPAR: +8.3%), thanks in part to a favorable Easter calendar shift. STR analysts also attribute performance to Brexit and the devaluation of the British pound with a subsequent increase in domestic and international hotel demand. Performance in the country’s largest market, London, was not disrupted following the Westminster attack on 22 March.
Occupancy: +2.6% to 70.6%
ADR: +4.1% to GBP83.73
RevPAR: +6.8% to GBP59.12
U.K. hotels continued a run of positive year-over-year performance that started late in 2016. March was the strongest growth month of the quarter (RevPAR: +8.3%), thanks in part to a favorable Easter calendar shift. STR analysts also attribute performance to Brexit and the devaluation of the British pound with a subsequent increase in domestic and international hotel demand. Performance in the country’s largest market, London, was not disrupted following the Westminster attack on 22 March.
Middle East and Africa hotel performance for Q1 2017
The hotel industry in the Middle East reported negative performance results during the first quarter of 2017, while hotels in Africa posted growth across the three key performance metrics.
The hotel industry in the Middle East reported negative performance results during the first quarter of 2017, while hotels in Africa posted growth across the three key performance metrics.
U.S. dollar constant currency, Q1 2017 vs. Q1 2016
Middle East
Occupancy: -1.4% to 70.5%
Average daily rate (ADR): -6.8% to US$173.06
Revenue per available room (RevPAR): -8.2% to US$122.07
Africa
Occupancy: +5.0% to 56.0%
Average daily rate (ADR): +9.8% to US$111.15
Revenue per available room (RevPAR): +15.3% to US$62.19
Local currency, Q1 2017 vs. Q1 2016
Occupancy: -1.4% to 70.5%
Average daily rate (ADR): -6.8% to US$173.06
Revenue per available room (RevPAR): -8.2% to US$122.07
Africa
Occupancy: +5.0% to 56.0%
Average daily rate (ADR): +9.8% to US$111.15
Revenue per available room (RevPAR): +15.3% to US$62.19
Local currency, Q1 2017 vs. Q1 2016
Lebanon
Occupancy: +10.1% to 49.3%
ADR: +0.8% to LBP219,811.07
RevPAR: +11.0% to LBP108,302.14
Lebanon’s quarterly performance was lifted by a particularly strong March, as RevPAR rose 30.9% due to 25.8% uplift in occupancy. At the market level, Beirut recorded strong performance growth for March (RevPAR: +29.4%) and the entire first quarter (RevPAR: +12.5%). According to STR analysts, Beirut has experienced a recent surge in tourism, helped by promotional efforts and government initiatives to facilitate political stability.
Occupancy: +10.1% to 49.3%
ADR: +0.8% to LBP219,811.07
RevPAR: +11.0% to LBP108,302.14
Lebanon’s quarterly performance was lifted by a particularly strong March, as RevPAR rose 30.9% due to 25.8% uplift in occupancy. At the market level, Beirut recorded strong performance growth for March (RevPAR: +29.4%) and the entire first quarter (RevPAR: +12.5%). According to STR analysts, Beirut has experienced a recent surge in tourism, helped by promotional efforts and government initiatives to facilitate political stability.
Saudi Arabia
Occupancy: -10.4% to 58.3%
ADR: -12.0% to SAR578.09
RevPAR: -21.2% to SAR337.29
Performance was down across all submarkets, with Al Khobar/Dammam and Jeddah reporting the most significant RevPAR declines (-38.6% and -33.3%, respectively). Demand fell 6.4% in the country, while supply grew 4.6%. According to research by Colliers International, Saudi Arabia is set to invest US$2 billion in cultural tourism, with a series of projects and targets laid out for Saudi Vision 2030.
Occupancy: -10.4% to 58.3%
ADR: -12.0% to SAR578.09
RevPAR: -21.2% to SAR337.29
Performance was down across all submarkets, with Al Khobar/Dammam and Jeddah reporting the most significant RevPAR declines (-38.6% and -33.3%, respectively). Demand fell 6.4% in the country, while supply grew 4.6%. According to research by Colliers International, Saudi Arabia is set to invest US$2 billion in cultural tourism, with a series of projects and targets laid out for Saudi Vision 2030.
Tunisia
Occupancy: +31.2% to 42.5%
ADR: -2.0% to TND161.58
RevPAR: +28.6% to TND68.70
STR analysts note that Tunisia’s occupancy growth came in comparison with months of significant decline in 2016. A low comparison base remained during that time period due to the 2015 terrorist attack in Sousse. Nonetheless, positive indications can be seen in the eight projects currently In Construction in the country and the additional five projects in various phases of planning. Several global brands are included in the new supply set to enter the market.
Occupancy: +31.2% to 42.5%
ADR: -2.0% to TND161.58
RevPAR: +28.6% to TND68.70
STR analysts note that Tunisia’s occupancy growth came in comparison with months of significant decline in 2016. A low comparison base remained during that time period due to the 2015 terrorist attack in Sousse. Nonetheless, positive indications can be seen in the eight projects currently In Construction in the country and the additional five projects in various phases of planning. Several global brands are included in the new supply set to enter the market.
Central/South America hotel performance for Q1 2017
The hotel industry in the Central/South America region reported negative results in the three key performance metrics during the first quarter of 2017.
The hotel industry in the Central/South America region reported negative results in the three key performance metrics during the first quarter of 2017.
U.S. dollar constant currency, Q1 2017 vs. Q1 2016
Central/South America
Occupancy: -1.6% to 55.3%
Average daily rate (ADR): -6.1% to US$101.60
Revenue per available room (RevPAR): -7.6% to US$56.16
Local currency, Q1 2017 vs. Q1 2016
Occupancy: -1.6% to 55.3%
Average daily rate (ADR): -6.1% to US$101.60
Revenue per available room (RevPAR): -7.6% to US$56.16
Local currency, Q1 2017 vs. Q1 2016
Brazil
Occupancy: -5.4% to 50.7%
ADR: -13.2% to BRL281.41
RevPAR: -17.9% to BRL142.59
Despite overall declines for the quarter, March marked Brazil’s first month of demand growth (+2.9%) since August 2016. Supply for the quarter was up 4.5% compared with Q1 2016, placing pressure on both occupancy and ADR levels. At the market level, Sao Paulo benefited from Lollapalooza (25-26 March), as major headliners like The Strokes, The Weeknd and Metallica helped boost occupancy 102.8% on the 26th.
Occupancy: -5.4% to 50.7%
ADR: -13.2% to BRL281.41
RevPAR: -17.9% to BRL142.59
Despite overall declines for the quarter, March marked Brazil’s first month of demand growth (+2.9%) since August 2016. Supply for the quarter was up 4.5% compared with Q1 2016, placing pressure on both occupancy and ADR levels. At the market level, Sao Paulo benefited from Lollapalooza (25-26 March), as major headliners like The Strokes, The Weeknd and Metallica helped boost occupancy 102.8% on the 26th.
Chile
Occupancy: +7.5% to 69.2%
ADR: -8.2% to CLP80,753.79
RevPAR: -1.3% to CLP55,913.17
While a decline in ADR drove down Chile’s overall Q1 performance, the country recorded its highest actual occupancy level (71.4%) for a March since 2014. Because of the ADR decreases, the Providencia area in Santiago was the only of the country’s submarkets that experienced an increase in RevPAR (+9.6%) in March.
Occupancy: +7.5% to 69.2%
ADR: -8.2% to CLP80,753.79
RevPAR: -1.3% to CLP55,913.17
While a decline in ADR drove down Chile’s overall Q1 performance, the country recorded its highest actual occupancy level (71.4%) for a March since 2014. Because of the ADR decreases, the Providencia area in Santiago was the only of the country’s submarkets that experienced an increase in RevPAR (+9.6%) in March.
Panama
Occupancy: +9.1% to 58.7%
ADR: -6.6% to PAB96.70
RevPAR: +1.9% to PAB56.72
In March, Panama recorded a 28.4% year-over-year increase in occupancy to 66.3%, marking the country’s highest actual occupancy level for the month since 2012. Panama City’s occupancy increased 107.2% on Wednesday 22 March, when the city hosted the CABSEC defense conference and Expocomer 2017 international trade exhibition.
Occupancy: +9.1% to 58.7%
ADR: -6.6% to PAB96.70
RevPAR: +1.9% to PAB56.72
In March, Panama recorded a 28.4% year-over-year increase in occupancy to 66.3%, marking the country’s highest actual occupancy level for the month since 2012. Panama City’s occupancy increased 107.2% on Wednesday 22 March, when the city hosted the CABSEC defense conference and Expocomer 2017 international trade exhibition.
Mexico hotel performance for Q1 2017
Mexico’s hotel industry reported positive year-over-year results in the three key performance metrics during the first quarter of 2017.
Mexico’s hotel industry reported positive year-over-year results in the three key performance metrics during the first quarter of 2017.
Compared with Q1 2016:
Occupancy: +1.2% to 64.7%
Average daily rate (ADR): +5.7% to MXN2,630.59
Revenue per available room (RevPAR): +7.0% to MXN1,701.21
“Performance growth continues in Mexico due to a strong dollar and reduction in fuel prices,” said Fatima Thompson, STR’s associate director of business development, hotels. “These factors will continue to attract foreign travelers to Mexico’s popular destinations, provided there is not a major shift in U.S. and Mexico diplomatic relations. That situation certainly warrants monitoring as to what impact it may have on tourism and hospitality.”
Occupancy: +1.2% to 64.7%
Average daily rate (ADR): +5.7% to MXN2,630.59
Revenue per available room (RevPAR): +7.0% to MXN1,701.21
“Performance growth continues in Mexico due to a strong dollar and reduction in fuel prices,” said Fatima Thompson, STR’s associate director of business development, hotels. “These factors will continue to attract foreign travelers to Mexico’s popular destinations, provided there is not a major shift in U.S. and Mexico diplomatic relations. That situation certainly warrants monitoring as to what impact it may have on tourism and hospitality.”
Among key markets in the country, N.W. Mexico experienced the largest increases in occupancy (+4.7% to 62.1%) and RevPAR (+15.0% to MXN1,912.27).
“2016 was the first full year that Luxury resorts in Los Cabos were back up and running after being forced to close due to Hurricane Odile in 2014,” Thompsons said. “Performance figures from the first quarter of 2017 are indicative of stability for that market.”
Mexico City posted the only double-digit increase in ADR (+10.0% to MXN2,643.24).
Overall, all five of Mexico’s key markets as defined by STR reported increases in ADR and RevPAR.
Central Mexico was the only market to see a decrease in occupancy (-0.5% to 59.1%).
Among class segments, Upper Upscale reported the largest increases in each of the three key performance metrics. Occupancy rose 4.7% to 70.8%, ADR was up 13.9% to MXN3,464.77 and RevPAR grew 19.3% to MXN2,452.84.
Canada hotel performance for Q1 2017
Canada’s hotel industry reported positive year-over-year results in the three key performance metrics during the first quarter of 2017, according to data from STR.
Canada’s hotel industry reported positive year-over-year results in the three key performance metrics during the first quarter of 2017, according to data from STR.
Compared with Q1 2016:
Occupancy: +2.7% to 56.1%
Average daily rate (ADR): +2.7% to CAD140.17
Revenue per available room (RevPAR): +5.5% to CAD78.64
March was particularly strong in terms of growth (RevPAR: +8.1%), and STR analysts attribute that performance strength to a favorable Easter calendar shift.
Occupancy: +2.7% to 56.1%
Average daily rate (ADR): +2.7% to CAD140.17
Revenue per available room (RevPAR): +5.5% to CAD78.64
March was particularly strong in terms of growth (RevPAR: +8.1%), and STR analysts attribute that performance strength to a favorable Easter calendar shift.
Two provinces saw double-digit RevPAR growth for the quarter: New Brunswick (+11.8% to CAD52.95) and Quebec (+10.1% to CAD87.11).
Prince Edward Island posted the largest lift in ADR (+6.0% to CAD105.48).
Newfoundland and Labrador experienced the greatest rise in occupancy (+9.4% to 50.8%).
Saskatchewan reported the steepest declines across the three performance metrics. Occupancy fell 2.9% to 48.0%, ADR was down 5.4% to CAD120.20 and RevPAR dropped 8.1% to CAD57.74.
Overall, nine of the 11 reporting provinces registered a RevPAR increase for the quarter.
