STR Reports Global Hotel Performances for 2012

According to data compiled by STR Global, hotels in the Asia Pacific region experienced positive results in the three key performance metrics in 2012 when reported in U.S. dollars.

In 2012, the Asia Pacific region's occupancy ended the year virtually flat with a 0.5% increase to 68.3%, ADR increased 0.9% to US$129.26 and RevPAR was up 1.4% to US$88.25.

"Asia Pacific, with its 1.4% RevPAR increase, saw a slower growth rate in all three key performance indicators during 2012 than during 2011," said Elizabeth Randall Winkle, managing director of STR Global. "Looking at the underlying factors of supply and demand, demand has been outpacing supply increases over the past three years, and demand grew 3.5% during 2012. The region's RevPAR of US$88.24 for 2012 is just short of the US$89.71 from 2008, which represents the highest RevPAR achieved over the past 14 years. Out of the countries we track across the region, Thailand and Japan had strong RevPAR improvements in local currency, highlighting their recoveries from 2011 events. New Zealand, on the other hand, saw the biggest drop of RevPAR across the region with 8.5% decline, as the performance compared against the 2011 Rugby World Cup."

Highlights from key market performers for 2012 in local currency (year-on-year comparisons):

Bangkok, Thailand (+11.0% to 70.5%), and Tokyo, Japan (+10.4% to 82.5%), achieved the largest occupancy increases for the year.

Ho Chi Minh City, Vietnam, fell 5.4% in occupancy to 63.7%, posting the largest decrease in that metric, followed by Bali, Indonesia, with a 4.1% decrease to 69.8%.

Three markets experienced double-digit ADR increases: Jakarta, Indonesia (+17.9% to IDR930,099.39); Taipei, Taiwan (+12.0% to TWD5,599.24); and Tokyo (+10.2% to JPY14,528.61).

Four markets achieved RevPAR growth of more than 10%: Tokyo (+21.6% to JPY11,990.11); Jakarta (+19.0% to IDR667,120.13); Bangkok (+16.9% to THB2,052.69); and Phuket, Thailand (+10.9% to THB2,851.38).

Auckland, New Zealand, reported the largest ADR (-13.9% to NZD136.42) and RevPAR (-15.1% to NZD102.62) decreases for the year.

Highlights from key market performers for 2012 in U.S. dollars (year-on-year comparisons):

Taipei rose 11.9% in ADR to US$189.38, reporting the largest increase in that metric.

Delhi, India (-16.7% to US$141.91), and Mumbai, India (-14.9% to US$149.05), posted the largest decreases for the year.

Four markets experienced RevPAR growth of more than 10%: Tokyo (+19.8% to US$149.56); Bangkok (+15.8% to US$65.95)  Jakarta (+11.3% to US$70.75); and Phuket (+10.6% to US$91.80).

Delhi fell 17.2% in RevPAR to US$88.34, reporting the largest decrease in that metric.

In December 2012, the Asia/Pacific region reported a 0.2% increase in occupancy to 66.6%, it rose 1.2% in ADR to US$133.00 and it was up 1.4% in RevPAR to US$88.64.

Americas

In 2012, the Americas region reported a 2.4% increase in occupancy to 61.5%, a 3.8% gain in ADR to US$108.53 and a 6.3% jump in RevPAR to US$66.77.

Among the key markets in the region, Los Angeles, California, rose 5.1% in occupancy to 75.4% in 2012, reporting the largest increase in that metric, followed by San Juan, Puerto Rico, with a 4.2% increase to 76.8%.

Santiago, Chile (+11.3% to US$176.02), and San Francisco, California (+10.8% to US$171.72), achieved the largest ADR increases for the year.

Four markets experienced double-digit RevPAR growth: San Francisco (+12.8% to US$137.99); Santiago (+12.7% to US$127.37); Los Angeles (+11.0% to US$98.11); and Chicago, Illinois (+10.0% to US$83.50).

Panama City, Panama, reported the largest decrease in all three key performance metrics for the year. The market's occupancy fell 15.9% to 48.5%, its ADR was down 10.1% to US$118.60 and its RevPAR decreased 24.4% to US$57.51.

In December 2012, the Americas region increased 3.0% in occupancy to 49.3%, rose 4.2% in ADR to US$108.05 and grew 7.3% in RevPAR to US$53.25.

Europe

The European hotel industry posted mixed results in year-on-year metrics when reported in U.S. dollars, euros and British Pounds for 2012.

"European hotels during December reported the highest increase in occupancy for any month in 2012," said Ms Randall Winkle. "The 2.8% occupancy increase, compared with December 2011, is a nice reprieve from the recent monthly performances, which moved compared with the prior year between the -1.0% and +1.0%. 2012 was the year for ADR increases, ending with 4.7% increase to EUR104.24. Looking at the 38 European markets that we forecast, we are currently predicting continued ADR growth during 2013 in 26 markets, where as the forecast sees 19 markets with declining occupancy performances."

Highlights from key market performers for 2012 include (year-on-year comparisons, all currency in euros):

Reykjavik, Iceland, rose 12.7% in occupancy to 70.3%, reporting the largest increase in that metric, followed by Bratislava, Slovakia, with a 10.4% occupancy increase to 51.4%.

Athens, Greece, fell 10.5% in occupancy to 53.1%, reporting the largest decrease in that metric.

Four markets achieved ADR increases of 10% or more: London, United Kingdom (+12.0% to EUR171.88); Tallinn, Estonia (+11.5% to EUR65.57); Warsaw, Poland (+10.5% to EUR82.98); and Reykjavik (+10.0% to EUR90.39).

Bratislava posted the only double-digit ADR decrease, falling 10.0% to EUR62.25.

Five markets experienced double-digit RevPAR growth in 2012: Reykjavik (+24.0% to EUR63.55); Dublin, Ireland (+14.1% to EUR65.87); Moscow, Russia (+11.9% to EUR98.52); Tallinn (+10.6% to EUR42.03); and Warsaw (+10.5% to EUR56.85).

Athens fell 18.7% in RevPAR to EUR50.08, posting the largest decrease in that metric.

In December 2012, the region increased 2.8% in occupancy to 55.0%, rose 1.3% in ADR to EUR96.95 and was up 4.1% in RevPAR to EUR53.33.

Middle East/Africa

The Middle East/Africa region reported mostly mixed performance results in 2012 when reported in U.S. dollars.

In 2012, the region reported a 6.1% increase in occupancy to 60.3%, a 0.5% decrease in ADR to US$161.64 and a 5.6% increase in RevPAR to US$97.54.

"Looking at African performance in constant U.S. dollars, a difference in ADR performances between Northern Africa and the rest of Africa becomes evident; Northern Africa's ADR declined 2.1% in constant USD, whilst the remaining continent's ADR increased 2.6% in constant USD," said Ms Randall Winkle. "Northern Africa experienced a bounce back in occupancy with a 16.8% increase to 52%. Its African neighbours grew 3.9% to 59.6% occupancy. The Middle East had a good year achieving its third highest RevPAR of US$131.48 within the last eight years. The region remained popular with developers and guests growing 6.3% in room inventory and 10.2% in demand."

Highlights among the region's key markets for 2012 include (year-on-year comparisons, all currency in U.S. dollars):

Cairo, Egypt, jumped 24.5% in occupancy to 45.6%, reporting the largest increase in that metric, followed by Amman, Jordan (+15.1% to 65.0%), and Muscat, Oman (+14.3% to 59.6%).

Nairobi, Kenya, reported the largest occupancy decrease, falling 8.2% to 62.9%.

Jeddah, Saudi Arabia (+9.0% to US$221.97), and Dubai, United Arab Emirates (+7.9% to US$234.99), ended the year with the largest ADR increases.

Beirut, Lebanon, reported the only double-digit ADR decrease, falling 10.2% to US$186.62.

Four markets achieved double-digit RevPAR growth: Amman (+20.9% to US$99.39); Jeddah (+19.7% to US$176.60); Cairo (+13.7% to US$47.35); and Dubai (+11.4% to US$181.45).

Beirut fell 17.3% in RevPAR to US$94.55, reporting the largest decrease in that metric.

In December 2012, the region reported a 3.7% increase in occupancy to 57.7%, a 1.1% increase in ADR to US$177.27 and a 4.9% rise in RevPAR to US$102.36.