LONDON - The hotel industries in the Middle East and Africa each posted growth in the three key performance metrics during April 2017, according to data from STR.
U.S. dollar constant currency, April 2017 vs. April 2016
Middle East
- Occupancy: +7.3% to 75.7%
- Average daily rate (ADR): +2.8% to US$176.60
- Revenue per available room (RevPAR): +10.3% to US$133.75
April marked the first month since September 2014 that the Middle East registered year-over-year increases in each of the three key performance metrics.
Africa
- Occupancy: +5.3% to 58.2%
- Average daily rate (ADR): +11.6% to US$108.40
- Revenue per available room (RevPAR): +17.6% to US$63.11
Local currency, April 2017 vs. April 2016
Kuwait
- Occupancy: +16.2% to 69.5%
- ADR: +1.2% to KWD69.84
- RevPAR: +17.6% to KWD48.53
This was the first month of ADR growth for Kuwait hotels since July 2016. STR analysts note that daily results showed considerable year-over-year increases in occupancy during the first 10 days of the month as Saudi Arabia school holidays drove an increase in leisure travelers to Kuwait.
Oman
- Occupancy: +15.4% to 68.1%
- ADR: +5.7% to OMR67.06
- RevPAR: +22.0% to OMR45.69
Performance was boosted by the Oman Pediatric & Neonatal Conference, held 13-15 April in Muscat. Oman’s RevPAR increased more than 40% each day during the event. For the entire month, hotels in Regional Oman managed to outperform the capital by posting 43.6% growth in RevPAR. STR analysts attribute this to a significant increase (+91.5%) in group demand (bookings of 10 or more at once).
United Arab Emirates
- Occupancy: +7.2% to 83.5%
- ADR: +6.3% to AED705.32
- RevPAR: +13.9% to AED588.64
STR analysts note that Emirates hotels experienced considerable uplift in transient demand. At the market level, Dubai recorded a 17.6% increase in RevPAR, compensating for a 6.5% RevPAR decline in Abu Dhabi. Significant growth was seen in the Upscale and Upper Midscale classes.
Multiple European hotel markets post record performance
The European hotel industry reported growth in each of the three key performance metrics through the first four months of 2017, according to April year-to-date data from STR. In addition, 12 of Europe’s key markets reached record-breaking levels in year-to-date revenue per available room (RevPAR).
The European hotel industry reported growth in each of the three key performance metrics through the first four months of 2017, according to April year-to-date data from STR. In addition, 12 of Europe’s key markets reached record-breaking levels in year-to-date revenue per available room (RevPAR).
When reported in euro constant currency, Europe posted the following April year-to-date figures in comparison with the first four months of 2016:
- Occupancy: +3.3% to 65.6%
- Average daily rate (ADR): +2.5% to EUR102.82
- RevPAR: +5.9% to EUR67.47
According to STR analysts, several factors have boosted hotel performance growth across different regions of Europe. The devaluation of the British pound has made the United Kingdom a favorable destination for many international tourists as well as domestic tourists, as travel outside of the country has become less affordable for U.K. residents. Lisbon, Portugal, has seen consistent growth since the beginning of 2016, as many tourists have chosen destinations in Portugal or Spain due to ongoing security concerns in other markets. There also has been a surge in both business and leisure travel in Eastern Europe. Budapest, Hungary, for example, benefitted from hosting several trade events earlier this year in addition to a lack of new supply entering the market.
In local currencies, the following key European markets posted their highest actual April year-to-date RevPAR levels on record (percentages indicate change from the first four months of 2016):
- Amsterdam, Netherlands (+8.8% to EUR102.71)
- Belgrade, Serbia (+18.7% to RSD5,190.70)
- Berlin, Germany (+4.1% to EUR65.21)
- Budapest , Hungary (+13.5% to HUF14,762.05)
- Dublin, Ireland (+6.2% to EUR92.41)
- Edinburgh, Scotland (+14.4% to GBP59.94)
- Lisbon, Portugal (+22.1% to EUR67.31)
- London, England (+11.1% to GBP105.80)
- Manchester, England (+3.0% to GBP57.88)
- Sofia, Bulgaria (+20.1% to BGN90.73)
- Tallinn, Estonia (+14.4% to EUR39.49)
- Vilnius, Lithuania (+9.1% to EUR35.04)
Central/South America hotel performance
The hotel industry in the Central/South America region reported negative results in the three key performance metrics during April 2017, according to data from STR.
The hotel industry in the Central/South America region reported negative results in the three key performance metrics during April 2017, according to data from STR.
U.S. dollar constant currency, April 2017 vs. April 2016
Central/South America
- Occupancy: -2.5% to 54.7%
- Average daily rate (ADR): -1.4% to US$100.42
- Revenue per available room (RevPAR): -3.9% to US$54.94
Local currency, April 2017 vs. April 2016
Argentina
- Occupancy: +9.3% to 61.6%
- ADR: +16.5% to ARS1,877.04
- RevPAR: +27.4% to ARS1,155.60
The absolute occupancy level was the highest for an April in Argentina since 2011. According to STR analysts, leisure business was the main driver of performance growth as RevPAR was up 40.4% on weekends compared with 21.8% on weekdays. At the start of the year, the government introduced a new policy to reimburse international tourists for value-added tax on hotel stays. At the market level, Buenos Aires experienced a 15.5% uplift in RevPAR, brought on by a 4.9% increase in occupancy to 69.3% and a 10.1% increase in ADR to ARS2,051,79.
Colombia
- Occupancy: -6.4% to 53.3%
- ADR: +3.6% to COP270,353.71
- RevPAR: -3.0% to COP144,168.76
Through the first four months of 2017, Colombia hotels reported a 4.1% decline in RevPAR. This came in comparison with a particularly strong growth period in 2016 (RevPAR: +15.4%). April-specific performance was affected by a decline in Bogota (RevPAR: -15.7%), and STR analysts note that the country’s hotel performance could face further challenges due to a development pipeline comprising 50 projects and 7,533 new rooms. According to Tourism Economics, Colombia’s economy opened the year on weak footing but is expected to see uplift in economic activity driven by a rebound in investment and domestic demand as inflation falls and credit conditions ease.
Ecuador
- Occupancy: +3.3% to 58.8%
- ADR: -4.7% to US$96.24
- RevPAR: -1.5% to US$56.56
Consistent with the previous three months, Ecuador’s April occupancy growth was overshadowed by a decline in ADR. Ahead of the second round of the presidential election, the country reported occupancy increases of 11.7% on Friday, 31 March and 5.5% on Saturday, 1 April. Significant performance increases also were seen during the final weekend in April, which was due in part to a low comparison base from last year, caused by the 16 April 2016 earthquake
