U.S., Central/South America and EMEA hotel performance for October 2018

The U.S. hotel industry reported positive results in the three key performance metrics during October 2018, according to data from STR. 

In a year-over-year comparison with October 2017, the industry posted the following:

• Occupancy: +0.8% to 69.9%
• Average daily rate (ADR): +2.7% to US$133.81
• Revenue per available room (RevPAR): +3.5% to US$93.55

“October provided a nice return to ‘normal’ with a monthly demand record and healthy RevPAR growth driven primarily by ADR,” said Jan Freitag, STR’s senior VP of lodging insights. “The further we move away from September, the less impacted by volatile hurricane-induced demand the monthly data becomes. As noted in our forecast revision released last week, we expect the industry’s record-breaking performance run to continue, and at the end of 2018, all KPIs should reach the highest levels ever seen. However, the pace of growth will continue to slow. Our projected ADR increases are only in line with the expected rate of inflation - that unfortunately is not good news for profit growth expectations.”  

Among the Top 25 Markets, New Orleans, Louisiana, registered the only double-digit rise in occupancy (+10.2% to 77.1%) and the largest jump in RevPAR (+17.4% to US$131.98). 

San Francisco/San Mateo, California, posted the highest lift in ADR (+7.3% to US$276.19). 

Norfolk/Virginia Beach, Virginia, saw the second-largest increases in occupancy (+8.5% to 65.7%) and RevPAR (+14.6% to US$61.95). 

Overall, 19 of the Top 25 Markets reported RevPAR growth.  

Due to comparison with the post-Hurricane Harvey demand period of 2017, Houston, Texas, reported the largest decreases in each of the three key performance metrics: occupancy (-22.8% to 64.7%), ADR (-7.7% to US$108.09) and RevPAR (-28.8% to US$69.94). 

Tampa/St. Petersburg, Florida, saw the only other double-digit decreases in occupancy (-10.1% to 66.7%) and RevPAR (-10.0% to US$78.95). 

Washington, D.C.-Maryland-Virginia, reported the second-largest decline in ADR (-4.5% to US$174.65). 

Central/South America hotel performance
Hotels in the Central/South America region reported mixed performance results during October 2018, according to data from STR.

U.S. dollar constant currency, October 2018 vs. October 2017

Central/South America

• Occupancy: -1.6% to 59.2%
• Average daily rate (ADR): +13.1% to US$109.56
• Revenue per available room (RevPAR): +11.3% to US$64.91

Local currency, October 2018 vs. October 2017

Bogota, Colombia 

• Occupancy: -7.8% to 61.0%
• ADR: +3.0% to COP272,088.72
• RevPAR: -5.0% to COP166,049.20

The decline in occupancy came as supply (+4.4%) outpaced demand (-3.7%) for the third consecutive month. STR analysts note that occupancy and ADR levels were higher than usual during the Latin American and Caribbean Agriculture congress (23-26 October). 

Sao Paulo

• Occupancy: -5.2% to 64.2%
• ADR: +4.5% to BRL362.61
• RevPAR: -1.0% to BRL232.71

STR analysts attribute the mixed performance in Sao Paulo to corporate demand and group events being pushed to September to avoid the election period in October. 

Middle East and Africa hotel performance
Hotels in the Middle East reported October 2018 performance declines, while hotels in Africa posted growth across the three key performance metrics, according to data from STR.

U.S. dollar constant currency, October 2018 vs. October 2017

Middle East

• Occupancy: -1.6% to 63.8%
• Average daily rate (ADR): -7.0% to US$151.11
• Revenue per available room (RevPAR): -8.5% to US$96.46

Africa

• Occupancy: +5.9% to 66.0%
• Average daily rate (ADR): +8.2% to US$119.72
• Revenue per available room (RevPAR): +14.5% to US$79.02

Local currency, October 2018 vs. October 2017

Cairo/Giza, Egypt

• Occupancy: +18.8% to 78.0%
• ADR: +9.0% to EGP1,578.77
• RevPAR: +29.5% to EGP1,231.76

The absolute levels in each of the three key performance metrics were the highest for any October in STR’s database for the Cairo and Giza combined market. October also continued a trend of significant year-over-year performance increases in the market. STR analysts attribute this continued growth to further performance recovery and increased tourism aided by resumed flights with Russia as well as government campaigns to boost the attractiveness of the destination. At the same time, the market’s hotels have benefitted from a lack of supply growth. 

Doha, Qatar

• Occupancy: +23.5% to 66.3%
• ADR: -11.1% to QAR265.86
• RevPAR: +9.8% to QAR176.14

The absolute occupancy level was the highest for an October in Doha since 2015. According to STR analysts, the occupancy performance was due to the combination of slowing supply growth and strong demand, especially around the Artistic Gymnastics World Championships (25 October through 3 November).

Europe hotel performance
Europe’s hotel industry reported positive results in the three key performance metrics during October 2018, according to data from STR.

Euro constant currency, October 2018 vs. October 2017

Europe 

• Occupancy: +2.4% to 77.4%
• Average daily rate (ADR): +6.0% to EUR116.15
• Revenue per available room (RevPAR): +8.6% to EUR89.89

Local currency, October 2018 vs. October 2017

Madrid

• Occupancy: +5.6% to 85.7%
• ADR: +17.9% to EUR138.88
• RevPAR: +24.5% to EUR119.07

The absolute RevPAR level was the highest for any month in STR’s Madrid database. STR analysts attribute a 7.4% jump in demand (room nights sold) to the CPhI Worldwide pharmaceutical conference (9-11 October) as well as the overall health of the market.   

Amsterdam

• Occupancy: -1.4% to 84.9%
• ADR: +3.2% to EUR158.87
• RevPAR: +1.8% to EUR134.96

STR analysts attribute the strong performance to multiple events held in October: Helitech International (16-18 October), the Offshore Energy Exhibition & Conference (22-24 October) and the Amsterdam Dance Event (17-21 October).

Tags: STR