STR Reports Global Hotel Performance Statistics for 2011

According to data compiled by STR Global, hotels in the Asia Pacific region experienced positive results in the three key performance metrics in 2011 when reported in U.S. dollars.

In year-on-year measurements, the Asia Pacific region's occupancy ended the year virtually flat with a 0.2% increase to 66.8%, its ADR increased 9.5% to US$140.44 and its RevPAR was up 9.8% to US$93.84.

"Despite the impact of natural disasters, Asia Pacific reported the highest RevPAR (US$94) and highest average room rate (US$140) in 2011 for the last seven years (since 2005)," said Elizabeth Randall, managing director of STR Global. "Occupancy levels were on par with last year and lower than 2007 levels reflecting the increasing room stock across the region. Room supply grew by 3.3% compound annual growth rate between 2005 and 2010, supply growth fell below the three% mark in 2011. We are expecting to see performance rebounds in 2012 depending on the avoidance of a wider cooling of the world economy. Our latest Market Forecast, released in November, predicts the performance of Beijing, Hong Kong, Singapore and Sydney. For all four cities we currently expect RevPAR in local currency to increase between 2.8% (Sydney) and 9% (Singapore)."

Highlights from key market performers for 2011 in local currency (year-on-year comparisons):

- Bangkok, Thailand, experienced the largest occupancy increase, rising 17.6% to 63.2%, followed by Phuket, Thailand, with a 10.1% increase to 69.7%.

- Shanghai, China, reported the only double-digit occupancy decrease, falling 11.6% to 56.6%.

- Three markets posted ADR increases of more than 10%: Hong Kong (+23.1% to HKD1,909.45); Jakarta, Indonesia (+13.7% to IDR794,656.83); and Bali, Indonesia (+10.6% to IDR1,319,697.10).

- Shanghai (-7.5% to CNY785,15) and Tokyo, Japan (-6.7% to JPY13,144.87) reported the largest ADR decreases for the year.

- Three markets ended the year with RevPAR increases of more than 15%: Hong Kong (+26.0% to HKD1,601.23); Jakarta (+19.5% to IDR569,471.36); and Bangkok (+19.1% to 1,888.94).

- Three markets experienced RevPAR decreases of more than 10%: Shanghai (-18.2% to CNY444.27); Tokyo (-14.7% to JPY9,766.07); and New Delhi, India (-11.4% to INR5,272.13).

Highlights from key market performers for 2011 in U.S. dollars (year-on-year comparisons):

- Hong Kong experienced the largest ADR increase, rising 22.8% to US$245.30, followed by Brisbane, Australia, with a 20.8% increase to US$190.91.

- New Delhi (-7.6% to US$174.21) and Mumbai, India (-4.9% to US$177.32), ended the year with the largest ADR decreases.

- Five markets achieved RevPAR increases of more than 20%: Hong Kong (+25.8% to US$205.71); Jakarta (+23.5% to US$64.56); Bangkok (+23.0% to US$61.28); Brisbane (+21.2% to US$153.40); and Beijing (+20.1% to US$68.87).

- New Delhi (-14.6% to US$110.83) and Shanghai (-14.3% to US$68.82) reported the largest RevPAR decreases for the year.

In December 2011, the Asia Pacific region reported a 1.2% increase in occupancy to 65.1%, it rose 3.4% in ADR to US$145.96, and it was up 4.6% in RevPAR to US$95.07.

The Americas

In 2011, the Americas region reported a 4.2% increase in occupancy to 60.2%, a 3.8% gain in ADR to US$104.26, and an 8.2% jump in RevPAR to US$62.79.

Among the key markets in the region, Santiago, Chile, reported the largest occupancy increase, rising 9.4% in occupancy to 71.5%, followed by Mexico City, Mexico (+7.9% to 62.5%), and Miami, Florida (+7.4% to 75.6%). Vancouver, Canada, experienced the largest occupancy decrease, falling 1.9% to 66.6%.

Three markets achieved double-digit ADR increases for the year: Sao Paulo, Brazil (+24.2% to US$141.54); San Francisco, California (+13.9% to US$155.14); and Rio de Janeiro, Brazil (+13% to US$205.23). Vancouver ended the year virtually flat in ADR with a 0.9% decrease to US$143.84, reporting the only decrease in that metric.

Sao Paulo (+27.8% to US$96.16) and Rio de Janeiro (+21.1% to US$155.35) experienced the largest RevPAR increases in 2011. Vancouver was the only market to report a RevPAR decrease, falling 2.7% to US$95.74.

In December 2011, the Americas region increased 3.9% in occupancy to 48%, rose 2.8% in ADR to US$103.01, and was up 6.8% in RevPAR to US$49.40.

Europe

The European hotel industry posted positive results in year-on-year metrics when reported in U.S. dollars, euros and British pounds for 2011.

"2011 was overall a good year for European hoteliers," said Ms. Randall. "Europe saw occupancy and average room rate increases across all months of 2011, with August being the exception. August reported a slight ADR decline (-1%), which proved not to be a turning point in performance. Recent months, as well as December's performance, still showed modest but in line with the usual expected performance increases, compared to the prior year. The outlook for 2012 is less certain, as the economic expectations have weakened throughout the later half and worries about the Euro-zone continue. Our latest Market Forecast, released in November, predicts to see positive RevPAR growth across 21 cities out of 34 European cities which we forecast."

Highlights from key market performers for 2011 include (year-on-year comparisons, all currency in euros):

- Venice, Italy, reported the only double-digit occupancy increase, rising 13.8% to 68.1%.

- Malmo, Sweden, fell 7.0% in occupancy to 59%, posting the largest decrease in that metric, followed by Istanbul, Turkey, with a 4% decrease to 70.1%.

- Venice reported the largest growth in ADR, rising 13.1% to EUR275.13, followed by Paris, France (+12.5% to EUR237.04), and Zurich, Switzerland (+11.7% to EUR196.78).

- Cardiff, U.K. (-8.1% to EUR64.57) and Birmingham, U.K. (-7.8% to EUR62.10) reported the largest ADR decreases for the year.

- Venice jumped 28.6% in RevPAR to EUR187.35, achieving the largest increase in that metric, followed by Florence, Italy (+15.0% to EUR91.95), and Paris (+14.3% to EUR187.20).

- Birmingham reported the largest RevPAR decrease for 2011, falling 7.6% to EUR42.36.

In December 2011 the region increased 2.2% in occupancy to 53.9%, rose 1.2% in ADR to EUR95.76, and was up 3.5% in RevPAR to EUR51.63.

Middle East / Africa

The Middle East/Africa region reported mostly negative performance results in 2011 when reported in U.S. dollars.

In 2011, the region reported a 6.8% decrease in occupancy to 57.1%, a 5.3% increase in ADR to US$162.81 and a 1.8% decrease in RevPAR to US$92.99.

"Due to the Arab Spring starting early 2011 across Northern Africa, the performances between Africa and the Middle East differ greatly," Ms Randall said. "Africa reported declining occupancy for all months in 2011, with average room rates declining throughout the latter half of the year. The Africa results were further impacted by supply increases in South Africa and the FIFA World Cup in 2010 ... The Middle East reported occupancy and average-room-rate improvements driven from the strong demand growth (+9.0%), the highest growth rate for the global regions, and the highest yearly growth achieved since the last seven years."

Highlights among the region's key markets for 2011 include (year-on-year comparisons, all currency in U.S. dollars):

- Abu Dhabi, United Arab Emirates, reported the largest growth in occupancy, increasing 9.9% to 64.8%, followed by Dubai, United Arab Emirates, with a 7% increase to 75.4%.

- Cairo, Egypt, fell 44.9% in occupancy to 36.1%, posting the largest decrease in that metric, followed by Beirut, Lebanon, with a 12.9% decrease to 56.2%.

- Jeddah, Saudi Arabia (+6.9% to US$203.51), and Riyadh, Saudi Arabia (+6.6% to US$271.67) reported the largest ADR increases for the year.

- Sandton, South Africa, and surrounding areas, fell 19.5% to US$130.41 in ADR, experiencing the largest decrease in that metric.

- Dubai achieved the largest RevPAR increase, jumping 10.7% to US$168.64.

- Cairo fell 49.2% in RevPAR to US$42.71, reporting the largest decrease for the year.

In December 2011, the region reported a 3.2% decrease in occupancy to 56.4%, a 4.9% increase in ADR to US$175.67 and a 1.5% rise in RevPAR to US$99.03.

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