STR: EMEA, Central/South America hotel performance for Q3 2019

LONDON — Hotels in the Middle East reported mixed Q3 2019 performance results, while hotels in Africa posted increases across the three key performance metrics, according to data from STR.

U.S. dollar constant currency, Q3 2019 vs. Q3 2018

Middle East
Occupancy: +2.4% to 62.2%
Average daily rate (ADR): -6.7% to US$131.49
Revenue per available room (RevPAR): -4.5% to US$81.80

Africa
Occupancy: +1.0% to 64.0%
Average daily rate (ADR): +3.5% to US$105.43
Revenue per available room (RevPAR): +4.5% to US$67.53
Local currency, Q3 2019 vs. Q3 2018
Manama, Bahrain

Occupancy: +3.8% to 55.5%
ADR: +0.2% to BHD58.59
RevPAR: +4.1% to BHD32.51

The absolute occupancy level was the highest for a third quarter in Manama since 2010, while the ADR level was the second-lowest for a Q3 since 2008. STR analysts note that August was the strongest month of the quarter when looking at absolute values: occupancy (59.3%), ADR (BHD61.33) and RevPAR (BHD36.38).    

Doha Centre, Qatar
Occupancy: +9.0% to 63.1%
ADR: -0.7% to QAR261.51
RevPAR: +8.2% to QAR165.03

The absolute occupancy level, driven by a 17.2% increase in demand, was the highest for a Q3 in Doha since 2014. When looking at individual months, September was Doha’s first month with a year-over-year increase in ADR since January 2015. STR analysts note that steady double-digit increases in demand have helped raise pricing confidence.  

Europe hotel performance for Q3 2019
Europe’s hotel industry reported positive results across the three key performance metrics during Q3 2019, according to data from STR.

Euro constant currency, Q3 2019 vs. Q3 2018

Europe
Occupancy: +0.6% to 79.1%
Average daily rate (ADR): +1.1% to EUR121.36
Revenue per available room (RevPAR): +1.7% to EUR95.95
Local currency, Q3 2019 vs. Q3 2018

Copenhagen, Denmark
Occupancy: -1.3% to 87.7%
ADR: +0.4% to DKK1,097.62
RevPAR: -0.9% to DKK963.03

The market’s 8.1% increase in supply was the largest for any third quarter in STR’s Copenhagen database. Demand (+6.7%) also grew a healthy pace, mitigating the pressure on occupancy levels. According to Oxford Economics, Copenhagen welcomed a record number of visitors in 2018, and that number is set to increase in the coming years. STR analysts note the importance of growth in visitor arrivals and hotel demand as Copenhagen is expected to add an additional 5,281 rooms by 2022, according to STR’s AM:PM database. 

Lisbon, Portugal
Occupancy: -1.9% to 84.3%
ADR: -1.1% to EUR128.45
RevPAR: -3.0% to EUR108.28

The market reported its first ADR decrease for any quarter since Q1 2014. According to Oxford Economics, while tourism arrivals to Lisbon have reached record highs, year-over-year growth has been minimal (+0.4% in 2018) in comparison with previous years. STR’s AM:PM database shows that the projected room openings through 2022 represent 15% of Lisbon’s existing supply. 

Central/South America hotel performance for Q3 2019
Hotels in the Central/South America region reported mixed performance results during Q3 2019, according to data from STR.

U.S. dollar constant currency, Q3 2019 vs. Q3 2018

Central/South America
Occupancy: +1.9% to 59.7%
Average daily rate (ADR): -42.5% to US$93.10
Revenue per available room (RevPAR): -41.4% to US$55.58

STR analysts note that the region’s ADR and RevPAR comparisons with last year are affected by the fluctuation in Venezuela currency, which occurred during Q3 2018. 

Local currency, Q3 2019 vs. Q3 2018

Quito, Ecuador
Occupancy: +3.1% to 62.7%
ADR: +0.4% to US$99.00
RevPAR: +3.5% to US$62.11

Demand grew 8.4%, driven by a double-digit rise in the metric during July (+17.3%). STR analysts note that July was the standout month of the quarter, with occupancy and RevPAR producing double-digit growth, +11.5% and +10.6%, respectively. 

Sao Paulo, Brazil
Occupancy: +0.4% to 67.2%
ADR: +9.4% to BRL377.22
RevPAR: +9.9% to BRL253.53

STR analysts note that July was the market’s best performing month of the quarter, helped by Copa America (14 June through 7 July). Sao Paulo saw increases across each of the three key performance metrics during the month: occupancy (+2.6%), ADR (+10.8%) and RevPAR (+13.6%). Q3 has been the best performing quarter thus far in 2019 in terms of absolute occupancy.  

Tags: STR-Hotels