Occupancy and average daily hotel rate increased in all
global regions year over year during April except the Middle East and Africa,
which saw declines in both metrics, according to STR.
Occupancy in the Middle East and Africa declined 2.4 percent
year over year to 64.5 percent, while ADR fell 5.1 percent to $150.37. Poor
hotel performance in the Middle East, in particular, weighed on results, with
ADR dropping 10.8 percent to $174.18. Multiple hoteliers reported negative first-quarter
results in the area during earnings calls, citing the impact of geopolitical
instability, low oil prices and reduced demand in leisure markets. Northern Africa
and Southern Africa fared slightly better, as ADR rose 10.4 percent to $108.85,
but occupancy still declined 4.1 percent to 55.5 percent.
In Europe, ADR increased 3.8 percent year over year in April
to $118.64, or €109.54, and occupancy rose 3.5 percent to 71.4 percent. Germany
posted particularly strong increases in occupancy, 9.8 percent to 73.9 percent,
and ADR, 14.4 percent to €107.98, bolstered by both a rise in tourism and continued
events-driven demand. Hilton Worldwide CFO Kevin Jacobs said during the
company's first-quarter earnings call that the recent terror attacks in Paris
and Brussels have negatively impacted hotels in those cities but not in the
region overall, where Hilton projects revenue per available room gains in the
mid-single digits for the remainder of the year.
The Asia/Pacific region reported a 2 percent year-over-year
increase in occupancy to 70.5 percent. ADR grew 1.5 percent to $102.34.
Malaysia, showing signs of recovery in hotel performance after a recent slump, saw
occupancy increase 10.5 percent to 63.7 percent and ADR grow 0.4 percent in
local currency terms. In Hong Kong, occupancy grew 4.1 percent to 87 percent
and ADR increased 3.8 percent, while occupancy in Manila rose 8.9 percent to
73.8 percent and ADR went up 1.9 percent. Both benefited from the shift in
business travel from March to April as a result of the early Easter holiday.
In the Americas, ADR increased 2.8 percent year
over year to $122.41 and occupancy grew 2 percent to 67.5 percent. Hotels in
Central and South America, where the Zika virus still is causing concern, saw occupancy
decline 1.5 percent to 56.4 percent. Top performers included both Bogotá,
Colombia, where occupancy rose 8.7 percent to 60.6 percent and ADR grew 10.9
percent in local currency terms, and Buenos Aires, where occupancy grew 7.8
percent to 66 percent and ADR rose 67.9 percent in local currency terms, thanks
to a lift in currency restrictions by the Argentinian government last December.