The average daily rate paid by Hogg Robinson Group clients
in 2014 declined year over year in most global regions, but the growth in some
of the largest cities continues to disrupt regional projections, according to
the travel management company’s 2014 Hotel Survey, released Monday.
"The market is incredibly varied with regional and even
national trends continuing to be replaced by micro trends effecting individual
city performance," HRG director of global hotel relations Margaret Bowler said
in a statement. "At the same time, hotel groups are continuing to focus on
increasing their average rates across the board."
Shifts in exchange rates, when measured in local currency
terms, led to ADR increases, in terms of what HRG clients paid last year, in 37
of the top 50 cities. When measured in British pound terms, though, only 13 of
the top cities had ADR increases.
HRG’s largest ADR increases in local currency were in Cape
Town (22.9 percent), Moscow (21.9 percent), Sao Paulo (16.4 percent),
Johannesburg (11.8 percent), and Hyderabad, India (11.2 percent). Moscow also remained
the most expensive city in the world for corporate hotels for the eleventh
year, the report stated. Europe hosts the largest ADR drops in local currency:
Frankfurt (10.4 percent), Rome (10.2 percent), Zurich (4.9 percent), Brussels (3.2
percent) and Milan (3.4 percent).
Europe’s overall ADR declined slightly in British pound
terms. Hamburg, benefiting from rate hikes during its harbor celebration event
in May, experienced a 10.2 percent increase, while Dublin continues to see
modest year-over-year ADR growth (5.5 percent) as demand returns. ADR increased
in eight of HRG’s top 10 United Kingdom markets, most significantly in Aberdeen
(9.6 percent), driven by the oil and gas industry. Glasgow (up 5.7 percent) and
Liverpool (up 4.6 percent) also led in rate increases, while ADR dropped in
London (down 0.7).
Conventions bolstered 2014 ADR growth in Seattle (15 percent
to $263.15), San Francisco (3.8 percent to $330.87) and Washington, D.C. (4.4
percent to $315.24). Miami continued to experience high corporate and leisure
demand, increasing its year-over-year ADR by 9.2 percent to $220.17. In Canada,
though, an increase in supply led to rate drops in local currency terms in
Vancouver (3.4 percent), Montreal (1 percent) and Toronto (0.6 percent).
The Asia/Pacific region reported a slight increase in ADR in
British pounds. Hyderabad, fueled by a thriving IT sector, led, and in New
Delhi ADR rose 8.2 percent. HRG saw ADR declines in Mumbai (0.9 percent),
Beijing (1.2 percent) and Sydney (2.8 percent).
In Africa, the largest ADR increases in local currency terms,
excluding Cape Town and Johannesburg, were in Nairobi (1.8 percent), and Lagos
(3.4 percent), where demand is beginning to outpace supply.