Average daily hotel rates in July as measured in U.S.
dollars increased year over year across all global regions except Asia/Pacific,
according to STR Global, though the Americas was the only region in which rate
growth was coupled with an increase in occupancy.
In the Americas, ADR was up 3.8 percent to $114.07, and
occupancy increased by 1.7 percent to 71 percent. In the United States, ADR
increased by 4.1 percent to $112.18, and occupancy increased by 1.7 percent to
71.1 percent, the highest July occupancy for the country since 2006, according
to STR senior vice president of operations Bobby Bowers.
The largest ADR increases occurred in Houston (up 14.1
percent to $99.50), San Francisco (up 9 percent to $192.13) and Chicago (up 8.4
percent to $131.16). Toronto (down 6.4 percent to $129.20) had the largest ADR
decrease in the Americas, and Washington, D.C., (down 1.6 percent to $131.45)
was the only major U.S. market in which ADR fell.
In Europe, occupancy increased by 2.3 percent to 73.5
percent, and ADR in U.S. dollars increased by 4.5 percent to $99.69. In euros,
however, ADR was down by 5.5 percent, the largest monthly decrease the region
has seen since the onset of the financial crisis, according to STR Global
managing director Elizabeth Winkle.
"Ramadan was in July this year, which had a negative
impact on hotel performance, especially since last July was also strong,"
according to Winkle. "The euro is still quite strong compared to the pound
and the U.S. dollar, which reduces spending power and limits hoteliers' ability
to increase their rates."
Europe's largest ADR increase for July was in Vilnius,
Lithuania (up 15.6 percent to €59.66). The largest decreases were in London
(down 23.5 percent to €165.14) and Istanbul (down 15.5 percent to €141.06).
Asia/Pacific ADR in July dropped by 5.2 percent to $116.36,
though occupancy increased by 0.3 percent to 69.6 percent. Unlike previous
months, July occupancy in Southeast Asia—particularly Malaysia, Indonesia and
the Philippines—declined, which STR attributed in part to heavy smog in the
region at the beginning of the month. The region's largest ADR increase,
measured in dollars, was in Taipei (up 10.7 percent to $187.00); the largest
decrease was in Tokyo (down 14.4 percent to $152.73).
In the Middle East and Africa, ADR increased by 5.6 percent
to $147.82 in July. Occupancy dropped by 13.5 percent to 49 percent and was
down in all markets except Doha and Nairobi, caused by a combination of
continued unrest in parts of the region, particularly in Cairo, and the timing
of Ramadan, according to STR. Jeddah, Saudi Arabia, (up 13 percent to $258.81)
had the region's largest ADR increase in July; Beirut (down 20.2 percent to
$157.03) and Sandton, South Africa (down 11 percent to $110.37) posted the
largest ADR decreases.