Middle East/Africa, Europe and Americas January 2014 Hotel Results

The Middle East/Africa region reported positive performance results during January 2014 when reported in U.S. dollars, according to data compiled by STR Global.

The region reported a 3.3-percent increase in occupancy to 62.0 percent, a 4.8-percent increase in average daily rate to US$187.15 and an 8.2-percent increase in revenue per available room to US$115.96.

“The total region started 2014 off well”, said Elizabeth Winkle, managing director of STR Global. “All three key performance metrics were positive, driven by performance in the Middle East. Oman and Saudi Arabia showed positive occupancy, while the United Arab Emirates continued to report positive rate growth. There is still instability in the region, but overall there are signs of improvement. Jordan is now showing some performance growth”.

Highlights among the Middle East/Africa region’s key markets for January 2014 include (year-over-year comparisons, all currency in U.S. dollars):

Four markets reported double-digit occupancy increases: Amman, Jordan (+19.2 percent to 54.5 percent); Doha, Qatar (+17.1 percent to 75.1 percent); Cape Town, South Africa (+13.3 percent to 73.0 percent); and Abu Dhabi, United Arab Emirates (+12.8 percent to 73.4 percent).

The European hotel industry posted mixed results in year-over-year metrics when reported in U.S. dollars, Euros and British pounds for January 2014. “European hotels began 2014 with a promising start”, said Elizabeth Winkle. “The region reported positive growth, when measured in Euros, in all three key performance metrics. During the first month, revenue per available room increased nearly 5 percent.

“The only surprise this month was Eastern Europe reporting a 7.5-percent decline in ADR. Almost all Eastern European countries reported negative rate growth in January. Northern Europe reported positive ADR growth, as Dublin finally saw rate growth (+6.2 percent), and London (+7.5 percent) and Copenhagen (+11.7 percent) both continued to report rate growth. Overall, demand for Europe was incredibly strong in 2013, and we expect that trend to continue into 2014”.

Highlights from key market performers for January 2014 include (year-over-year comparisons, all currency in Euros):

Three markets achieved double-digit occupancy growth: Athens, Greece (+17.6 percent to 43.6 percent); Budapest, Hungary (+13.2 percent to 41.6 percent); and Copenhagen, Denmark (+11.0 percent to 56.6 percent).

The Americas region recorded positive results in the three key performance metrics when reported in U.S. dollars during January 2014. Compared to January 2013, the Americas region reported a 2.4 percent increase in occupancy to 52.5 percent, a 2.0-percent increase in average daily rate to US$112.00 and a 4.4-percent increase in revenue per available room to US$58.83.

Among the key markets in the region, Mexico City, Mexico, reported the largest occupancy increase, rising 9.7 percent to 55.6 percent. Vancouver, Canada, followed with a 9.2-percent increase to 53.4 percent. Panama City, Panama, fell 9.0 percent to 52.0 percent in occupancy, posting the largest decrease in that metric.

San Francisco, California, experienced the largest ADR increase, rising 11.9 percent to US$187.21. The market also reported the largest RevPAR growth, up 19.3 percent to US$133.55.

Washington, D.C., reported the largest decrease in both ADR (-17.6 percent to US$125.08) and RevPAR (-23.0 percent to US$61.59).

Source: Travel Daily News