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Lodging

STR Global: August Hotel Rates Up Across Most Of The Globe

By Michael B. Baker / September 25, 2012 / Contact Reporter
Business Travel News on X

Average daily rates in August increased modestly year over year in most global regions, while the average Asia/Pacific rate, though steady, reflected a relatively strong regional market, according to STR Global.

The August average daily rate increased by 3.8 percent year over year in the Americas, and occupancy increased by 2.8 percent to 67.9 percent. Within the United States, the average daily rate was up 4.3 percent and occupancy up 2.8 percent to 67.8 percent. Eight of the top 25 hotel markets in the United States had occupancies of at least 80 percent, according to STR senior vice president of operations Bobby Bowers.

Besides Tampa-St. Petersburg, Fla., which saw the average daily rate increase by 33.4 percent due largely to the Republican National Convention, the region's largest average daily rate increases occurred in Oahu (16.5 percent) and San Francisco (12.8 percent). The average daily rate in São Paulo was down 11.1 percent, the largest decrease in the Americas.

Occupancy in Europe for August largely was flat, up 0.5 percent to 71.3 percent. The average daily rate was up 13 percent in terms of euros but down by 2.1 percent in U.S. dollar terms. London's Olympics and several major trade fairs in Germany boosted the continent's results, according to STR Global managing director Elizabeth Randall Winkle.

Aside from London, where the average daily rate was up 60.6 percent in euro terms, Geneva had the region's largest ADR increase (19.2 percent). The overall average daily rate in Germany was up 8.1 percent. Both Zurich and Madrid had average daily rate decreases of almost 8 percent, the largest in Europe.

Both average daily rate and occupancy were nearly flat in the Asia/Pacific region in August. Rates, however, have risen just about to pre-recession levels in U.S. dollar terms, a sign of strong regional market conditions, Randall Winkle said. The region's largest ADR increases were in Jakarta (21.2 percent) and Tokyo (16.7 percent), while Delhi had the largest decrease, down 10.1 percent.

In the Middle East and Africa, the August average daily rate was up 3 percent, and occupancy increased by 11.9 percent to 53.8 percent. The region's hotels benefited from a comparatively earlier end to Ramadan, Randall Winkle said. Several cities had significant ADR increases: Dubai (23.7 percent); Jeddah, Saudi Arabia (18.1 percent); and Amman (17.8 percent). Sandton, South Africa, had the region's largest rate decrease, down 11.6 percent.

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