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Outside Of Europe, August Hotel Rates Rise

By Michael B. Baker / September 24, 2010 / Contact Reporter
Business Travel News on X

August hotel rates increased year over year across all global regions with the exception of Europe, according to data released this week by Smith Travel Research Global.

Overall european hotel rates were about €10 below their levels in August 2009, even though corporate and group travel has begun to pick up in the region, according to STR Global managing director Elizabeth Randall. Barcelona posted the largest rate decline, down 11.8 percent.

A few cities had rate increases of more than 20 percent, including Stockholm and Malmo, Sweden, as well as Zurich. London also reached its highest revenue per available room levels since 2004.

Rates in the Asia/Pacific region, on the other hand, increased by 10 percent year over year in August, while occupancy increased by 5.8 percent. In particular, Shanghai reported a 40.2 percent increase in occupancy, a 30 percent increase in average daily rate and an 82.4 percent increase in RevPAR. Hong Kong reported the largest rate increase, up 31.4 percent year over year.

Rates also increased in the Americas by a more modest 1.7 percent. Coupled with a 6.3 percent increase in occupancy, the region's RevPAR increased by 8.1 percent.

Rates increased across all major cities in the region with the exception of San Juan, Puerto Rico, where they decreased by 2.7 percent. Both of the highest rate increases for the month were in Brazil: Rio de Janeiro and Sao Paulo, both up 20.8 percent.

While rates were up 7.4 percent in the Middle East/Africa region, its occupancy also was down by 9.4 percent last month, leading to an overall 2.8 percent decline in RevPAR. The timing of Ramadan affected occupancy levels in the region, according to Randall.

The largest rate increases were in South Africa, up 27 percent in Johannesburg and 17.5 percent in Cape Town. Rates continued their decline in Abu Dhabi, however, off 28 percent from 2009 levels.

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