Smith Travel: Worldwide Hotel Occupancy Drops But Rates Rise

Worldwide hotel occupancy is down in all regions except for the Middle East and Africa, although rates and revenues largely continue to climb, according to data released today by Smith Travel Research Global.

Growth particularly was slow in the Americas. For the month of July, year-over-year occupancy dropped 1.9 percent, despite a boost from higher South American occupancies, according to STR Global. Revenue per available room for the Americas was up only 0.9 percent, and the average daily rate rose by 2.9 percent to $108.58.

STR data released earlier this week showed that the United States posted even weaker gains in July. Average daily rate was up 2.5 percent to $106.50, RevPAR was up 0.4 percent and occupancy fell by 2.1 percent.

In Europe, rates grew by 14.1 percent, thanks in part to currency conversion levels from the U.S. dollar, according to STR Global. Occupancy was down 2.3 percent, and RevPAR increase by 11.5 percent.

"European performance fell as the occupancy dipped below levels of 2007, and although average rate has been holding up, it wasn't enough to offset the fall," STR Global managing director James Chappell said in a statement.

Hotel rate performance was stronger in other regions. The Middle East and Africa saw the only regional occupancy gains in July, up 3.5 percent, and rates were up 29.9 percent while RevPAR increased 34.5 percent. Despite a 7 percent drop in occupancy, the Asia/Pacific region in July also had rates grow by 14.8 percent, and RevPAR was up 6.8 percent.