STR Reports Global Hotel Performance for June 2012

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

In year-on-year measurements, the Asia Pacific region's occupancy rates increased 1.8% to 66.2%, ADR increased 5.4% to US$136.87, and RevPAR was up 7.3% to US$90.66.

Year-to-date 2012 the region reported a 2.3% occupancy increase to 66.0%, a 3.3% rise in ADR to US$141.38 and a 5.7% growth in RevPAR to US$93.26.

"The first six months of 2012 saw overall moderate growth in occupancy and ADR for most months," said Elizabeth Randall, managing director at STR Global. "The increases have helped to bring the region back on par with the first half performance in 2008, before the worldwide financial and economic downturn made its full impact felt. The region matched its 66% occupancy and was just US$0.38 below its 2008 first half ADR performance. As the region experienced a continuous increase in new hotel supply, growing with a 3.2% compound annual growth rate (CAGR) between the first six months 2008 and 2012, demand has kept pace with a 3.1% CAGR."

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

- Hanoi, Vietnam, reported the largest occupancy increase, rising 13.1% to 61.8%, followed by Shanghai, China (+11.3% to 62.7%), and Phuket, Thailand (+10.2% to 59.3%).

- Manila, Philippines, fell 6.3% in occupancy to 65.2%, posting the largest decrease in that metric.

- Three markets experienced ADR increases of more than 20%: Jakarta, Indonesia (+26.8% to IDR967,559.38); Tokyo, Japan (+22.3% to JPY14,796.58); and Taipei, Taiwan (+20.9% to TWD6,805.68).

- Delhi, India, reported the largest ADR (-5.6% to INR6,520.52) and RevPAR (-10.8% to INR3,321.20) decreases for the month.

- Five markets achieved RevPAR increases of more than 20%: Jakarta (+31.2% to IDR749,897.41); Tokyo (+29.9% to JPY11,731.01); Taipei (+28.1% to TWD5,015.50); Phuket (+26.3% to THB1,875.44); and Kuala Lumpur, Malaysia (+21.1% to MYR316.38).

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

- Tokyo reported the largest ADR increase, up 24.5% to US$186.03, followed by Taipei (+16.6% to US$227.08) and Jakarta (+15.4% to US$102.17).

- Three markets achieved RevPAR increases of more than 20%: Tokyo (+32.3% to US$147.48); Taipei (+23.6% to US$167.35); and Phuket (+22.9% to US$59.06).

- Delhi reported the largest ADR decrease, falling 23.8% to US$115.97. The market also reported the largest RevPAR decrease, dropping 28.0% to US$59.07.

 Americas

The Americas region reported a 4.1% increase in occupancy to 70.0%, a 4.3% gain in ADR to US$109.41 and an 8.6% jump in RevPAR to US$76.54.

Among the region's key markets, Los Angeles, California, reported the largest occupancy increase, rising 8.4% to 82.9%, followed by San Juan, Puerto Rico, with a 6.6% increase to 81.7%. Occupancy in Panama City, Panama, fell 20.0% to 44.5%, experiencing the largest decrease in that metric.

Four markets reported ADR growth of more than 10%: Rio de Janeiro, Brazil (+21.0% to US$245.43); San Francisco, California (+18.5% to US$177.89); Santiago, Chile (+12.1% to US$165.57); and Boston, Massachusetts (+10.3% to US$175.79). Sao Paulo, Brazil (-11.4% to US$132.70), and Vancouver, Canada (-10.7% to US$142.52), ended the month with the only double-digit ADR decreases.

San Francisco jumped 25.5% in RevPAR to US$160.05, achieving the largest increase in that metric, followed by Rio de Janeiro (+25.0% to US$176.29) and Los Angeles (+18.7% to US$112.02). Three markets posted RevPAR decreases of more than 15%: Panama City (-25.7% to US$53.45); Vancouver (-16.7% to US$105.15); and Sao Paulo (-16.5% to US$89.46).

In the first half of 2012 year-to-date, the region's occupancy was up 3.2% to 61.1%, its ADR grew 3.9% to US$107.75 and its RevPAR increased 7.2% to US$65.81.

Europe

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

Year-to-date 2012, the region's occupancy was virtually flat with a 0.1% increase to 63.7%, its ADR, in euro terms, was up 3.9% to EUR103.03, and its RevPAR increased 4.1% to EUR65.64.

"ADR across Europe, in euro terms, continued to grow during June, showing robustness compared to the flatter occupancy performances recently," said Ms. Randall. "When comparing the first six months of 2012 to the first half in 2008, there is still ground to be made up. RevPAR is still EUR3.61 behind its 2008 first-half performance (EUR69.29). Europe overall saw only a limited increase in room supply, a 1.1% compound annual growth rate (CAGR), compared to 0.9% CAGR of demand increase over the last four years."

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

- Frankfurt, Germany, rose 13.3% in occupancy to 73.5%, posting the largest increase in that metric, followed by Istanbul, Turkey (+12.5% to 84.6%), and Reykjavik, Iceland (+12.1% to 90.5%).

- Athens, Greece, fell 19.2% in occupancy to 65.6%, reporting the largest occupancy decrease.

- Warsaw, Poland, grew 97.4% in ADR to EUR158.82, reporting the largest increase in that metric, followed by Frankfurt with a 28.6% increase to EUR127.58.

- Milan, Italy (-8.4% to EUR123.99), and Zurich, Switzerland (-8.0% to EUR197.58), ended the month with the largest ADR decreases.

- Four markets achieved RevPAR increases of more than 25%: Warsaw (+98.1% to EUR124.34); Frankfurt (+45.8% to EUR93.80); Reykjavik (+33.3% to EUR113.07); and Istanbul (+28.6% to EUR166.68).

- Athens fell 21.2% in RevPAR to EUR75.61, posting the largest decrease in that metric, followed by Milan with a 14.5% decrease to EUR78.91.

Middle East/Africa

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

The region's occupancy increased 8.7% to 58.2% during the month, its ADR fell 1.8% to US$136.16 and its RevPAR rose 6.8% to US$79.22.

Year-to-date 2012, the region reported a 9.4% occupancy increase to 60.6%, a 1.5% ADR decrease to US$162.37, and a 7.7% rise in RevPAR to US$98.38.

"Middle Eastern hoteliers reported improving occupancy and average room rates boosted by double-digit demand growth for the first half of 2012 compared to the first six months in 2011," Ms. Randall said. "The occupancy and average room rate for the first half of 2012 is, however, still behind its peak performance of the first six months in 2008. For the first six months of 2008, the region achieved 70.9% occupancy and rate of US$235.64. The region saw the highest increase in new room supply compared to the other world regions since 2008. Africa reported continued occupancy improvements whilst average room rates remain under pressure compared to the first half 2011. In contrast, looking back at the first half of 2008, the Africa region surpassed its average room rate performance by US$12.68."

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

- Muscat, Oman, rose 34.1% in occupancy to 51.6%, posting the largest increase in that metric, followed by Amman, Jordan, with a 15.0% increase to 67.8%.

- Doha, Qatar, ended the month with the largest occupancy decrease, falling 11.8% to 49.4%.

- Dubai, United Arab Emirates, achieved the largest ADR increase, rising 9.8% to US$170.07, followed by Amman with an 8.2% increase to US$155.51.

- Cape Town, South Africa, fell 15.6% in ADR to US$102.93, posting the largest decrease in that metric, followed by Muscat with a 13.3% decrease to US$152.90.

- Four markets experienced RevPAR increases of more than 15%: Amman (+24.4% to US$105.43); Jeddah, Saudi Arabia (18.2% to US$195.70); Dubai (+18.0% to US$125.25); and Muscat (+16.3% to US$78.87).

- Abu Dhabi, United Arab Emirates, fell 15.4% in RevPAR to US$66.13, reporting the largest decrease in that metric.

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