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Hotel Investment Performance
Hotel Revenue Statistics
Hotel Occupancy Rates
Returns on Hotel Investments
The latest figures show that the global hotel industry continues to grow despite the economic difficulties in many regions. In fact, according to the data from STR global, hotels in the Asia Pacific have seen the smallest growth in August, while those in the Middle East and Europe's emerging and prime markets performed best.
The figures show that occupancy in the Asia Pacific region was virtually unchanged compared to August 2011, registering a 0.1% decline at 68.1 percent, while the average daily rate in the region increased by just 0.7% to US$139.49 on average. Revenue per available room also increased by 0.7% over the year to US$95.01.
This was the weakest performance of all the regions, and even the best performing countries were the weakest. Indeed Australia and Singapore were the only 2 hitting above 5% growth for any of the above metrics. Singapore was the best performing with occupancy up 4% on the year, ADR up 6.5% and RevPAR up 10.7%. Australian occupancy increased by 2%, ADR by 5.2% and RevPAR by 7.5%.
The Middle East/Africa region performed very well indeed according to STR, especially when measured in US dollars. The region's occupancy increased 11.9 percent to 53.8 percent during the month, its average daily rate increased 3.0 percent to US$154.93 and revenue per available room for the region grew by 15.3 percent to US$83.37.
Incredibly occupancy in Cairo increased by 69.7% indicating that people feel the country is once again becoming safe to visit after the Arab Spring. The UAE continues to be a success story of the region, it now has the second highest average hotel occupancy with the biggest regional growth of 22.3% taking it to 56.7%, behind South Africa at 57.2% and more importantly above Saudi Arabia with 56.1% according to the data. UAE hotel's also saw RevPAR increase by 46.2% and ADR by 19.5% over the year according to STR. Egypt was the second best performer with occupancy up 17.0%, ADR up 19.5% and RevPAR up 39.9%.
Overall Europe was weak, with average occupancy up 0.5%, ADR down 2.1% and RevPAR down 1.7%. However, within that were bright stars, namely emerging markets like Istanbul and Slovakia and prime markets like London and Geneva. Istanbul reported the largest occupancy increase, rising 23.9 percent to 65.2 percent, followed by Bratislava, Slovakia, with a 15.7-percent increase to 55.5 percent. London saw ADR increase by 60.6 percent to EUR199.27, achieving the largest increase in that metric. Geneva, Switzerland, followed with a 19.2 percent increase to EUR260.61.
Having said that five European markets experienced RevPAR increases of 20 percent or more: London (+61.2 percent to EUR163.52); Istanbul (+39.8 percent to EUR99.76); Geneva (+32.8 percent to EUR151.77); Berlin, Germany (+20.5 percent to EUR60.62); and Reykjavik, Iceland (+20.0 percent to EUR117.37).
The Americas region reported a 2.8 percent increase in occupancy to 67.9 percent, a 3.8-percent gain in average daily rate to US$109.05 and a 6.7 percent increase in revenue per available room to US$74.08. San Juan, Puerto Rico, saw the biggest occupancy increase at 6.6 percent taking it to 79.2%. San Francisco, California, experienced the only double-digit ADR increase, rising 12.8 percent to US$180.19. Sao Paulo reported the largest ADR decrease, falling 11.1 percent to US$133.08.
Two markets achieved RevPAR increases of more than 10 percent: San Francisco (+12.6 percent to US$162.96) and Los Angeles (+12.4 percent to US$112.85).
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