STR Global reports mixed numbers for EMEA region

The European and Middle East/Africa hotel industry posted mixed results in year-over-year metrics for October 2014, according to the latest data compiled by STR Global.


“Each month this year, Europe has reported either flat or positive performance in the three key performance metrics”, Elizabeth Winkle, managing director of STR Global, said in a statement. “October performance was no different. Actual average daily rate (EUR110.42) for the month was the highest rate we’ve seen in any October in the past 10 years. Compared to last year, ADR increased 3.8 percent. The ADR growth is driven mostly by Northern Europe, with help from Southern Europe.
“In Northern Europe, when measured in local currency year to date, markets such as Dublin, London, Copenhagen and Edinburgh have contributed to ADR growth,” Winkle continued. “With the exception of Dublin, the markets mentioned do not use the euro, which has an overall impact on the exchange rate. When measuring in constant currency, year-to-date ADR increased 4.4 percent for the Northern region. Athens, Lisbon and Madrid have all have contributed to Southern Europe’s ADR growth. 

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“Year to date, Western Europe still is achieving the highest actual ADR levels (EUR117.34) of all sub-regions”, Winkle commented. “Amsterdam, Geneva, Paris, and Zurich saw the highest year-to-date ADR levels in the region, when measured in Euros”.

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

* Athens, Greece, reported the only double-digit occupancy increase, rising 18.2 percent to 79.6 percent.
* Tel Aviv, Israel, fell 24.4 percent to 64.9 percent in occupancy, posting the largest decrease in that metric.
* Seven markets achieved ADR increases of more than 10.0 percent: Geneva, Switzerland (+14.6 percent to EUR243.28); Manchester, England (+12.9 percent to EUR94.32); Lisbon, Portugal (+12.0 percent to EUR97.86); Amsterdam, Netherlands (+11.1 percent to EUR161.27); Paris, France (+10.8 percent to EUR295.21); Budapest, Hungary (+10.4 percent to EUR75.37); and Edinburgh, Scotland (+10.2 percent to EUR99.14).
* Moscow, Russia, reported the largest ADR decrease, falling 21.7 percent to EUR110.89. The market also experienced the largest RevPAR decrease, down 29.1 percent to EUR72.45.
* Six markets reported RevPAR increases of more than 15.0 percent: Athens (+27.8 percent to EUR85.01); Geneva (+20.6 percent to EUR173.46); Lisbon (+20.4 percent to EUR83.12); Madrid, Spain (+18.3 percent to EUR74.87); Budapest (+18.2 percent to EUR58.64); and Manchester (+15.3 percent to EUR79.78).

Middle East & Africa

In year-over-year comparisons, the Middle East and Africa reported a 7.2-percent increase in occupancy to 67.6 percent, a 2.4-percent decrease in average daily rate to US$182.34 and a 4.6-percent increase in revenue per available room to US$123.19.

“The region was a mixed picture in October,” Winkle noted. “It was only the second month all year the region reported a decrease in average daily rate. But, because of the 7.2-percent occupancy growth driven by countries such as Egypt and Lebanon, October still ended with positive revenue-per-available-room growth (+4.6 percent, when measured in U.S. dollars).

“South Africa created the largest drag on ADR in U.S. dollar terms (-4.7 percent). However, when viewed in local currency, the country’s ADR actually grew at a rate of 5.3 percent during October”, she said.

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

* Cairo, Egypt, increased 95.4 percent in occupancy to 55.3 percent, reporting the largest growth in that metric.
* Lagos, Nigeria, fell 8.7 percent in occupancy to 46.9 percent, posting the largest decrease in that metric.
* Cairo (+16.7 percent to US$116.24) and Jeddah, Saudi Arabia (+12.5 percent to US$270.58), achieved the largest ADR increases.
* Abu Dhabi, United Arab Emirates, reported the largest ADR decrease, down 9.2 percent to US$154.75.
* Cairo experienced the largest RevPAR growth, increasing 128.0 percent to US$64.25.
* Lagos reported the only double-digit RevPAR decrease, falling 14.1 percent to US$116.71.

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