STR: EMEA and Central/South America hotel performance for July 2019

LONDON - Europe’s hotel industry reported positive results in the three key performance metrics during July 2019, according to data from STR.

Euro constant currency, July 2019 vs. July 2018

Europe

• Occupancy: +1.2% to 79.0%
• Average daily rate (ADR): +0.1% to EUR120.92
• Revenue per available room (RevPAR): +1.3% to EUR95.54

Local currency, July 2019 vs. July 2018

Milan, Italy

• Occupancy: +4.8% to 75.2%
• ADR: +11.3% to EUR145.59
• RevPAR: +16.6% to EUR109.54

The absolute RevPAR level was the highest for a July in STR’s Milan database. STR analysts point to double-digit RevPAR increases during 4-17 July, which were partially due to the Laura Pausini and Biagio Antonacci concerts at the San Siro Stadium (4-5 July), as well as increases in tourism to the city as several art museums and exhibitions opened during the summer season. 

Amsterdam, Netherlands

• Occupancy: -0.4% to 88.1%
• ADR: -6.8% to EUR139.73
• RevPAR: -7.2% to EUR123.12

STR analysts attribute the decline in performance to an absence of previous year’s conferences held in July: the Biennial Congress of the European Association for Cancer Research (30 June -3 July 2018) and the International AIDS Conference (23-27 July 2018). Performance levels are also being affected by the continued supply growth in the market.

Middle East and Africa hotel performance for July 2019
Hotels in the Middle East reported mixed July 2019 performance results, while hotels in Africa posted increases across the three key performance metrics, according to data from STR.

U.S. dollar constant currency, July 2019 vs. July 2018

Middle East

• Occupancy: +3.0% to 60.8%
• Average daily rate (ADR): -5.0% to US$119.26
• Revenue per available room (RevPAR): -2.1% to US$72.51

Africa

• Occupancy: +1.0% to 62.6%
• Average daily rate (ADR): +4.8% to US$106.94
• Revenue per available room (RevPAR): +5.8% to US$66.99

Local currency, July 2019 vs. July 2018

Sharm El Sheikh, Egypt

• Occupancy: +3.8% to 66.3%
• ADR: +23.9% to EGP1,318.95
• RevPAR: +28.6% to EGP874.87

The absolute ADR and RevPAR levels were the highest for any July in STR’s Sharm El Sheikh database. STR analysts note that RevPAR has grown for 33 consecutive months in the market as supply has remained relatively flat since early 2016 and demand has grown by double digits for 24 of the last 26 months.

Lagos, Nigeria

• Occupancy: +16.2% to 65.7%
• ADR: -5.0% to NGN47,077.51
• RevPAR: +10.5% to NGN30,915.51

The absolute occupancy and RevPAR levels were the highest ever recorded for a July in STR’s Lagos database. However, July marked the sixth consecutive month of ADR declines for the market. Occupancy, and subsequently RevPAR, were helped by a double-digit rise in demand (+17.0%) and mostly flat supply (+0.7%).

Central/South America hotel performance for July 2019
Hotels in the Central/South America region reported mixed performance results during July 2019, according to data from STR.

U.S. dollar constant currency, July 2019 vs. July 2018

Central/South America

• Occupancy: +4.2% to 60.1%
• Average daily rate (ADR): -70.9% to US$92.16
• Revenue per available room (RevPAR): -69.7% to US$55.36

STR analysts note that the region’s demand continues to grow, pushing occupancy levels higher. However, ADR and RevPAR comparisons with last year are significantly affected by currency fluctuations. 

Local currency, July 2019 vs. July 2018

Bogota, Colombia

• Occupancy: +6.1% to 59.9%
• ADR: +2.7% to COP264,017.33
• RevPAR: +8.9% to COP158,213.52

The absolute occupancy level, driven by a double-digit increase in demand (+10.9%), was the highest for a July in Bogota since 2013. When looking at daily data, 11-13 July and 17-19 July showed double-digit rises in occupancy, due in part to Agroexpo 2019 (11-21 July). 

Sao Paulo, Brazil

• Occupancy: +2.2% to 63.9%
• ADR: +11.0% to BRL358.27
• RevPAR: +13.5% to BRL228.97

The absolute occupancy level was the highest for a July in Sao Paulo since 2012, while the ADR level was the highest for the month since 2012. STR analysts note that the largest performance increases occurred during the beginning of the month, likely helped by the final week of Copa America (14 June through 7 July). Double-digit growth was also present on the first two days (23-24 July) of the FIEE International Electric, Electronic, Power and Automation Industry Trade Show.

Source: TravelDailyNews International