Global Hotel Market Enjoys Double Digit Growth in 2006

Global hotel performance data for 2006 from the HotelBenchmark Survey by Deloitte shows that all regions – Asia, Central and South America, Europe and the Middle East – enjoyed double-digit growth in revenue per available room (revPAR).

The Middle East, led the way for the third consecutive year – posting stronger growth than any other region at 16.5%. Although this was not as strong as in 2005 it is still impressive given the political unrest and terrorist attacks witnessed over the last 12 months. Hotel performance across the region continues to be driven by average room rates – which shot up 17.8% in 2006 to reach US$142. 

2006 also proved to be another good year for hoteliers in Central and South America. With the region exceeding the global average for tourist arrivals during 2006 – up over 8% – the hotel industry is reaping the benefits. Overall Central and Southern America reported a 13% increase in revPAR in 2006 as average room rates soared by 12.3% to US$122. Consequently with hotels performing well - the level of investment in the market is on the rise with many international hotel chains increasing their presence across the region. Cities such as Buenos Aires, Caracas and Santiago all saw increases in supply during 2006.

Hotels in Europe had a remarkable year in 2006 – with revPAR up by 12% to US$102 - almost double the growth achieved in 2005. As well as improved economic conditions, Europe has also staged some of the most enticing sports spectacles from the Winter Olympics in Italy to World Cup in Germany and the America’s Cup in Spain. Lovers of music and art have also travelled to the region to celebrate the work of Rembrandt, Picasso and Mozart.

Asia Pacific was dealt some tough cards in 2006 - the earthquake in Yogyakarta, the terrorist attacks on Mumbai’s commuter trains and more recently a series of bomb explosions in Bangkok over the New Year celebrations – however, despite this the region has once again come up trumps with revPAR up 11%. Growth across the region is being fuelled predominately by markets in the South – in particular India which saw revPAR increase by over 30% in 2006.