STR and STR Global report the global performance of the industry for 2012.



The U.S. hotel industry reported increases in all three key performance metrics for fourth quarter 2012 in year-over-year measurements, according to data from STR.

The industry's occupancy increased 2.4 percent to 56.6 percent, average daily rate rose 4.0 percent to US$106.54 and revenue per available room was up 6.5 percent to US$60.34.

"The industry finished 2012 on a good note in the fourth quarter," said Bobby Bowers, senior VP of operations at STR. "RevPAR gained 6.5 percent—driven primarily by a 4.2 percent ADR growth. We expect this pattern will continue in 2013, as demand growth slows somewhat and ADR traction holds.

"Room supply growth is gaining momentum—up 0.7 percent in the quarter—but we don't expect new hotel room capacity will be a major drag on overall 2013 industry performance," he continued. "As the U.S. hotel industry enters its fourth year of recovery, we anticipate another good year in 2013 with full year RevPAR growth in the 5.5 percent to 6.0 percent range."

Among the Top 25 Markets, Houston, Texas, rose 6.9 percent in occupancy to 62.3 percent, reporting the largest increase in that metric, followed by New Orleans, Louisiana (+6.5 percent to 65.4 percent), and Seattle, Washington (+6.5 percent to 64.4 percent).

Oahu Island, Hawaii, increased 9.5 percent in ADR to US$189.55, reporting the largest increase in that metric.

Eight markets experienced double-digit RevPAR increases for the quarter: New Orleans (+14.0 percent to US$88.04); Los Angeles-Long Beach, California (+13.8 percent to US$91.40); Seattle (+13.2 percent to US$75.19); Atlanta, Georgia (+12.7 percent to US$49.65); Houston (+12.6 percent to US$58.65); Oahu Island (+12.2 percent to US$155.47); Anaheim-Santa Ana (+12.1 percent to US$81.61); and Denver, Colorado (+11.3 percent to US$60.37).

Washington, D.C., posted the largest decrease in all three key performance metrics. Its occupancy fell 1.8 percent to 60.8 percent, its ADR was down 0.8 percent to US$143.03 and its RevPAR decreased 2.6 percent to US$87.00.

The Middle East/Africa region reported mostly mixed performance results in 2012 when reported in U.S. dollars, according to data compiled by STR Global.

In 2012, the region reported a 6.1-percent increase in occupancy to 60.3 percent, a 0.5-percent decrease in average daily rate to US$161.64 and a 5.6-percent increase in revenue per available room to US$97.54.

"Looking at African performance in constant U.S. dollars, a difference in ADR performances between Northern Africa and the rest of Africa becomes evident; Northern Africa's ADR declined 2.1 percent in constant USD, whilst the remaining continent's ADR increased 2.6 percent in constant USD", said Elizabeth Randall Winkle, managing director of STR Global. "Northern Africa experienced a bounce back in occupancy with a 16.8-percent increase to 52 percent. Its African neighbours grew 3.9 percent to 59.6 percent occupancy. 

"The Middle East had a good year achieving its third highest RevPAR of US$131.48 within the last eight years", Winkle continued. "The region remained popular with developers and guests growing 6.3 percent in room inventory and 10.2 percent in demand".

Highlights among the region's key markets for 2012 include (year-over-year comparisons, all currency in U.S. dollars):

• Cairo, Egypt, jumped 24.5 percent in occupancy to 45.6 percent, reporting the largest increase in that metric, followed by Amman, Jordan (+15.1 percent to 65.0 percent), and Muscat, Oman (+14.3 percent to 59.6 percent).
• Nairobi, Kenya, reported the largest occupancy decrease, falling 8.2 percent to 62.9 percent.
• Jeddah, Saudi Arabia (+9.0 percent to US$221.97), and Dubai, United Arab Emirates (+7.9 percent to US$234.99), ended the year with the largest ADR increases.
• Beirut, Lebanon, reported the only double-digit ADR decrease, falling 10.2 percent to US$186.62.
• Four markets achieved double-digit RevPAR growth: Amman (+20.9 percent to US$99.39); Jeddah (+19.7 percent to US$176.60); Cairo (+13.7 percent to US$47.35); and Dubai (+11.4 percent to US$181.45).
• Beirut fell 17.3 percent in RevPAR to US$94.55, reporting the largest decrease in that metric.

In December 2012, the region reported a 3.7-percent increase in occupancy to 57.7 percent, a 1.1-percent increase in ADR to US$177.27 and a 4.9-percent rise in RevPAR to US$102.36.

The European hotel industry posted mixed results in year-over-year metrics when reported in U.S. dollars, euros and British pounds for 2012, according to data compiled by STR Global.



"European hotels during December reported the highest increase in occupancy for any month in 2012", said Elizabeth Randall Winkle, managing director of STR Global. "The 2.8-percent occupancy increase, compared with December 2011, is a nice reprieve from the recent monthly performances, which moved compared with the prior year between the -1.0 percent and +1.0 percent. 2012 was the year for ADR increases, ending with 4.7-percent increase to EUR104.24.

"Looking at the 38 European markets that we forecast", she continued, "we are currently predicting continued ADR growth during 2013 in 26 markets, where as the forecast sees 19 markets with declining occupancy performances".
 
Highlights from key market performers for 2012 include (year-over-year comparisons, all currency in euros):

• Reykjavik, Iceland, rose 12.7 percent in occupancy to 70.3 percent, reporting the largest increase in that metric, followed by Bratislava, Slovakia, with a 10.4-percent occupancy increase to 51.4 percent.
• Athens, Greece, fell 10.5 percent in occupancy to 53.1 percent, reporting the largest decrease in that metric.
• Four markets achieved ADR increases of 10 percent or more: London, United Kingdom (+12.0 percent to EUR171.88); Tallinn, Estonia (+11.5 percent to EUR65.57); Warsaw, Poland (+10.5 percent to EUR82.98); and Reykjavik (+10.0 percent to EUR90.39).
• Bratislava posted the only double-digit ADR decrease, falling 10.0 percent to EUR62.25.
• Five markets experienced double-digit RevPAR growth in 2012: Reykjavik (+24.0 percent to EUR63.55); Dublin, Ireland (+14.1 percent to EUR65.87); Moscow, Russia (+11.9 percent to EUR98.52); Tallinn (+10.6 percent to EUR42.03); and Warsaw (+10.5 percent to EUR56.85).
• Athens fell 18.7 percent in RevPAR to EUR50.08, posting the largest decrease in that metric.

In December 2012, the region increased 2.8 percent in occupancy to 55.0 percent, rose 1.3 percent in ADR to EUR96.95 and was up 4.1 percent in RevPAR to EUR53.33.

Hotels in the Asia/Pacific region experienced positive results in the three key performance metrics in 2012 when reported in U.S. dollars, according to data compiled by STR Global.
   
In 2012, the Asia/Pacific region's occupancy ended the year virtually flat with a 0.5-percent increase to 68.3 percent, its average daily rate increased 0.9 percent to US$129.26 and its revenue per available room was up 1.4 percent to US$88.25.

"Asia/Pacific, with its 1.4 percent RevPAR increase, saw a slower growth rate in all three key performance indicators during 2012 than during 2011", said Elizabeth Randall Winkle, managing director of STR Global. "Looking at the underlying factors of supply and demand, demand has been outpacing supply increases over the past three years, and demand grew 3.5 percent during 2012. The region's RevPAR of US$88.24 for 2012 is just short of the US$89.71 from 2008, which represents the highest RevPAR achieved over the past 14 years.
 
"Out of the countries we track across the region,  Thailand and Japan had strong RevPAR improvements in local currency, highlighting their recoveries from 2011 events", she continued. "New Zealand, on the other hand, saw the biggest drop of RevPAR across the region with 8.5-percent decline, as the performance compared against the 2011 Rugby World Cup".

Highlights from key market performers for 2012 in local currency (year-over-year comparisons):

• Bangkok, Thailand (+11.0 percent to 70.5 percent), and Tokyo, Japan (+10.4 percent to 82.5 percent), achieved the largest occupancy increases for the year.
• Ho Chi Minh City, Vietnam, fell 5.4 percent in occupancy to 63.7 percent, posting the largest decrease in that metric, followed by Bali, Indonesia, with a 4.1-percent decrease to 69.8 percent.
• Three markets experienced double-digit ADR increases: Jakarta, Indonesia (+17.9 percent to IDR930,099.39); Taipei, Taiwan (+12.0 percent to TWD5,599.24); and Tokyo (+10.2 percent to JPY14,528.61).
• Four markets achieved RevPAR growth of more than 10 percent: Tokyo (+21.6 percent to JPY11,990.11); Jakarta (+19.0 percent to IDR667,120.13); Bangkok (+16.9 percent to THB2,052.69); and Phuket, Thailand (+10.9 percent to THB2,851.38).
• Auckland, New Zealand, reported the largest ADR (-13.9 percent to NZD136.42) and RevPAR (-15.1 percent to NZD102.62) decreases for the year.

Highlights from key market performers for 2012 in U.S. dollars (year-over-year comparisons):

• Taipei rose 11.9 percent in ADR to US$189.38, reporting the largest increase in that metric.
• Delhi, India (-16.7 percent to US$141.91), and Mumbai, India (-14.9 percent to US$149.05), posted the largest decreases for the year.
• Four markets experienced RevPAR growth of more than 10 percent: Tokyo (+19.8 percent to US$149.56); Bangkok (+15.8 percent to US$65.95); Jakarta (+11.3 percent to US$70.75); and Phuket (+10.6 percent to US$91.80).
• Delhi fell 17.2 percent in RevPAR to US$88.34, reporting the largest decrease in that metric.

In December 2012, the Asia/Pacific region reported a 0.2-percent increase in occupancy to 66.6 percent, it rose 1.2 percent in ADR to US$133.00 and it was up 1.4 percent in RevPAR to US$88.64.

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