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Lodging

STR Global: August Hotel ADR Rises In Most Global Regions

By Michael B. Baker / September 24, 2014 / Contact Reporter
Business Travel News on X

Average daily hotel rates increased year over year across most global regions in August, although ADR was down significantly in the Middle East and Africa, according to STR Global.

In the Americas, ADR increased 5.2 percent to $120.02, and occupancy increased 3.6 percent to 71.6 percent, the firm reported. The largest ADR percentage increases were in San Francisco (12.1 percent to $229.10), Los Angeles (11.1 percent to $164.05), Mexico City (10.8 percent to $131.10) and Boston (10 percent to $179.56). Mexico City's occupancy also increased 10.1 percent to 67.9 percent. ADR in Santiago dropped 15.2 percent to $136.81, the largest percentage decrease in the region.

August was a strong month for Europe in terms of hotel performance, according to STR Global managing director Elizabeth Winkle. ADR was up in terms of both the U.S. dollar (6.1 percent to $145.51) and the euro (6.9 percent to €110.82), though down slightly in British pound terms (down 0.9 percent to £87.69). Occupancy was up 2.5 percent to 75.7 percent. Demand was strong in Southern Europe, and "Western Europe, which has reported muted growth thus far in 2014, saw an uptick during August," Winkle added.

Measured in euros, Europe's largest ADR growth was in Geneva (15.7 percent to €257.48) and Barcelona (15.6 percent to €132.59). The largest ADR drop was in Moscow (down 18.2 percent to €82.68).

Asia/Pacific ADR increased slightly year over year in August, up 0.3 percent to $116.54, and occupancy increased 1.1 percent to 72.6 percent. India, along with Indonesia, saw particularly strong occupancy growth during the month, according to Winkle.

"Demand in India has continued to increase following the [parliamentary] election in April," Winkle said in a statement. "After a period of uncertainty, the outlook is optimistic."

In U.S. dollar terms, the region's largest ADR increases were in Auckland (14.1 percent to $117.59), Mumbai (12.8 percent to $112.63) and Osaka (12.3 percent to $138.24). The largest decreases were in Beijing (down 2.8 percent to $89.35) and Bali (down 2.6 percent to $156.89).

ADR in the Middle East/Africa region dropped year over year 7.5 percent to $141.66; occupancy, meanwhile, increased 14.8 percent to 64.3 percent. Winkle noted "occupancy growth across all subregions," particularly Egypt, which is facing comparisons with last year's low occupancy amid political unrest.

The region's largest ADR increases were in Cape Town (8.7 percent to $100.60) and Cairo (8.6 percent to $108.29). The largest decrease was in Dubai (down 5.6 percent to $181.83).


 
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