Hotel average daily rates in May, measured in U.S. dollars,
increased year over year in all global regions except Asia/Pacific, according
to STR Global.
In the Americas, ADR increased by 3.5 percent, and U.S. ADR
increased by 3.6 percent. The largest ADR increases in the regions were in
Houston (12.1 percent), Oahu (12.1 percent) and Mexico City (9.7 percent).
Panama City had the largest ADR decrease (down 10.1 percent), while Atlanta
(down 3.3 percent) and Washington, D.C. (down 2.9 percent), were the only two
major markets in the United States to see ADR declines. Occupancy in the
Americas increased by 1.2 percent to 64 percent and in the United States by 1.1
percent to 64 percent.
Sluggish group demand in the United States continues to "be
a drag on overall industry performance," according to STR COO Brad Garner.
Year-over-year demand in May for transient hotel rooms grew
a "solid" 4.3 percent, Garner noted, but demand growth for group room
nights fell 3.4 percent. "Though group business remains elusive, we remain
optimistic that group demand can provide life to industry performance moving
forward," he said.
In Europe, ADR increased by 2.4 percent, and occupancy
increased by 2.6 percent to 72 percent. In euro terms, however, ADR was down by
1.9 percent. The largest ADR increases in euros included Frankfurt (12.9
percent), Vilnius, Lithuania (12.3 percent), and Copenhagen (10.2 percent). The
largest ADR decreases were in Warsaw (down 15.3 percent) and Bucharest (down
12.7 percent).
Asia/Pacific ADR decreased by 2.5 percent in May, and
occupancy decreased by 1.3 percent to 65.9 percent. The decreases are a result
of both an oversupply of hotels in Central and South Asia, particularly in India,
and spending cuts by the Chinese government, according to STR Global managing
director Elizabeth Winkle. The region's largest ADR increases included Taipei
(14.9 percent), Auckland (12.3 percent) and Jakarta (10 percent). ADR in Tokyo
dropped 15.6 percent, the largest decrease for the region.
The Middle East/Africa region had the highest growth of all
global regions in both ADR and occupancy in May: ADR was up 5.5 percent, and
occupancy increased by 4.1 percent to 62.7 percent. The largest ADR increases
were in Jeddah (17.5 percent) and Dubai (10.5 percent). Beirut (down 17.3
percent) had the largest ADR decrease.