STR Global looks at EMEA numbers, pipelines

STR Global has released details of EMEA hotel numbers for last month, with the Middle East and Africa looking positive and Europe on somewhat shakier ground. 

By the Numbers

First off, Europe's hotel industry posted mixed results in year-over-year metrics for February.

“Last year, we saw occupancy growth and rate declines in Europe,” said Elizabeth Winkle, managing director of STR Global in a statement. “Year to date, we are seeing positive occupancy and average-daily-rate growth in the region. Northern Europe performed well this month compared to the other sub-regions in both occupancy and rate. Denmark, Estonia, Ireland and the United Kingdom are driving the positive performance in the sub-region. We expect 2014 to be a year of growth and it is positive to see rate growth in the early months of the year”.

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Highlights from key market performers for February 2014 include (year-over-year comparisons, all currency in Euros):
* Athens, Greece, rose 23.2 percent in occupancy to 52.1 percent, reporting the largest increase in that metric. Amsterdam, Netherlands, followed with a 19.5-percent increase to 67.9 percent.
* Warsaw, Poland, fell 5.1 percent in occupancy to 60.3 percent, posting the largest decrease in that metric.
* Five markets achieved double-digit ADR gains: Copenhagen, Denmark (+15.7 percent to EUR112.69); Amsterdam (+14.7 percent to EUR112.31); Manchester, England (+13.2 percent to EUR80.12); Tallinn, Estonia (+11.4 percent to EUR71.36); and London, England (+10.2 percent to EUR153.78).
* Amsterdam jumped 37.1 percent in RevPAR to EUR76.27, reporting the largest increase in that metric, followed by Athens (+26.9 percent to EUR44.72) and Copenhagen (+22.2 percent to EUR64.40).
* Moscow, Russia, experienced the largest decrease in both ADR (-20.4 percent to EUR127.97) and RevPAR (-22.1 percent to EUR81.53).

The Middle East/Africa region, meanwhile, reported positive performance results during February, with a 1.3-percent increase in occupancy to 67.4 percent, a 2.7-percent increase in average daily rate to US$177.42 and a 4.0-percent increase in revenue per available room to US$119.55.

“The Middle East still is driving performance in the region”, Winkle said. “Jordan, Oman and Saudi Arabia are all posting both occupancy and ADR growth (in local currency). Jordan and Bahrain are reporting the largest occupancy growth. Dubai is still reporting high occupancy; the new supply coming in is being absorbed and we are seeing double-digit rate growth”.

Highlights among the Middle East/Africa region’s key markets for February 2014 include (year-over-year comparisons, all currency in U.S. dollars):
* Three markets reported double-digit occupancy growth: Manama, Bahrain (+39.0 percent to 63.2 percent); Doha, Qatar (+13.9 percent to 76.9 percent); and Amman, Jordan (+10.2 percent to 59.3 percent).
* Beirut, Lebanon, fell 25.2 percent in occupancy to 39.4 percent, posting the largest decrease in that metric. The market also reported the largest decrease in RevPAR, falling 31.4 percent to US$55.61.
* Dubai, United Arab Emirates, achieved the largest ADR increase, rising 9.7 percent to US$286.99.
* Abu Dhabi, United Arab Emirates (-22.9 percent to US$148.72) reported the largest ADR decrease in February.
* Manama jumped 37.7 percent in RevPAR to US$120.11, experiencing the largest increase in that metric, followed by Amman with a 15.2-percent increase to US$97.16.

Pipelines

STR Global also released its Global Construction Pipeline Report for the month, with some good numbers for both Europe and the Middle East/Africa markets. The Europe hotel development pipeline has 864 hotels totalling 140,114 rooms. The total active pipeline data includes projects in the In Construction, Final Planning and Planning stages but does not include projects in the Pre-Planning stage.

Among the region’s key markets, Manchester, England, reported the largest expected supply growth (+26.9 percent) if all 3,751 rooms in its total active pipeline open. Four other markets reported significant expected supply growth: Moscow, Russia (+23.7 percent with 9,286 rooms); Baku, Azerbaijan (+19.0 percent with 710 rooms); Istanbul, Turkey (+15.1 percent with 6,089 rooms); and London, England (+14.9 percent with 17,594 rooms).

The Middle East/Africa hotel development pipeline has 504 hotels totalling 122,631 rooms. The total active pipeline data includes projects in the In Construction, Final Planning and Planning stages but does not include projects in the Pre-Planning stage.

Among the countries in the region, Saudi Arabia reported the most rooms under construction with 17,135 rooms. Four other countries ended the month with more than 2,500 rooms under construction: United Arab Emirates (16,627 rooms); Qatar (5,633 rooms); Jordan (3,231 rooms); and Egypt (2,966 rooms).

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