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STR: EMEA and Central/South America hotel performance for November 2017

LONDON – Hotels in the Middle East reported negative performance results during November 2017, while hotels in Africa posted growth across the three key performance indicators, according to data from STR.

U.S. dollar constant currency, November 2017 vs. November 2016
Middle East

  • Occupancy: -1.8% to 69.6%
  • Average daily rate (ADR): -4.6% to US$171.10
  • Revenue per available room (RevPAR): -6.3% to US$119.01

STR analysts note that consistent declines in RevPAR over the past two years correlates with the drop in oil prices. Qatar, Bahrain and Saudi Arabia have experienced the steepest performance decreases in 2017, and all have been significantly affected by reduced corporate business.

Africa

  • Occupancy: +8.7% to 64.3%
  • Average daily rate (ADR): +0.9% to US$106.73
  • Revenue per available room (RevPAR): +9.7% to US$68.66

Northern Africa drove demand and occupancy growth for the region, with increases of 26.0% and 25.2%, respectively. Egypt helped that performance with continued high occupancy growth (+39.3%). ADR decreased in Northern Africa (-4.0%), which was in part due to decreases in Morocco (-8.5%) and Tunisia (-2.0%).

ADR in the Southern Africa region grew 4.7%, pushing RevPAR up 4.9%. While occupancy only grew 0.1%, the 68.6% absolute occupancy is the region’s highest occupancy for a November since 2008.

Europe hotel performance for November 2017
Europe’s hotel industry reported positive results in the three key performance metrics during November 2017, according to data from STR.

Euro constant currency, November 2017 vs. November 2016

  • Occupancy: +1.9% to 71.2%
  • Average daily rate (ADR): +3.8% to EUR105.45
  • Revenue per available room (RevPAR): +5.8% to EUR75.11

The absolute occupancy level is the highest for any November in STR’s database. STR analysts note this as especially notable given several acts of terrorism earlier in the year and the added challenge of political instability in several of the region’s major markets.

When examining specific days of the week, Tuesdays (80.3%) and Wednesdays (77.8%) showed the highest occupancy rates, suggesting that corporate demand remains a strong factor in overall performance results in Europe. This was confirmed in ADR levels for the same days—Tuesdays (EUR108.83) and Wednesdays (EUR108.37) once again produced the highest absolute levels.

Local currency, November 2017 vs. November 2016
At the country level, Turkey reported the largest year-over-year increases in occupancy (+13.4% to 62.7%), ADR (+16.7% to TRY266.26) and RevPAR (+32.3% to TRY166.98).

The second-highest jump in RevPAR was seen in Portugal (+23.1% to EUR57.11).

Performance in the United Kingdom was relatively flat overall: occupancy (-1.3% to 77.6%), ADR (+1.9% to GBP93.52) and RevPAR (+0.6% to GBP72.59).

Central/South America hotel performance for November 2017
Hotels in Central America reported mixed year-over-year results in November 2017, while hotels in South America posted growth across the three key performance metrics, according to data from STR.

U.S. dollar constant currency, November 2017 vs. November 2016
Central America

  • Occupancy: +1.0% to 63.0%
  • Average daily rate (ADR): -1.2% to US$103.68
  • Revenue per available room (RevPAR): -0.3% to US$65.31

South America

  • Occupancy: +6.4% to 63.3%
  • ADR: +15.1% to US$116.08
  • RevPAR: +22.4% to US$73.43

STR analysts note that besides Uruguay, all countries in South America recorded growth in demand (roomnights sold), with Argentina and Brazil being the strongest performers.

Despite occupancy growth in Costa Rica, STR analysts note that ADR declined for all but three days in November. The country hosted the Sustainable Hotel & Tourism Investment Conference (13-14 November) in San Jose, which helped raise absolute occupancy above 80.0% during those days.

Brazil continued to show signs of recovery, with occupancy (+7.4% to 59.1%) reaching its highest level for any month since November 2015.

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