Where performance stands across global regions
Where performance stands across global regions
22 AUGUST 2019 7:35 AM

STR’s Robin Rossmann took a look at performance in regions around the world during a session at the recent Hotel Data Conference.

NASHVILLE, Tennessee—Where the industry falls in the cycle depends on which part of the world you’re looking at, according to Robin Rossmann, managing director at STR.

(STR is the parent company of HNN.)

At the 11th annual Hotel Data Conference, Rossmann took a look at different parts of the world and gave his thoughts on what performance looks like in each of those regions.

Performance is very different across cities in Europe, Rossmann said.

In London, the city had its first decline in GDP growth since 2012, which some might see as a signal that performance is on its way down, but “the opposite is actually the truth,” he said.

There’s been an overall decline in performance over the last 12 months, but average daily rate and occupancy are being buoyed by a weak sterling, making it an inexpensive destination for travelers. Performance has made a strong recovery, leading to an all-time high in the market.

Dublin and Edinburgh are two of the strongest-performing cities in Europe, but revenue per available room has started to decline while supply growth is increasing.

Middle East
The Middle East has seen tough times over the last five years, Rossmann said.

A chart with RevPAR percent change from 2005-2019 shows that declines in RevPAR of more than 5% have accelerated in recent months.

Performance across the Asia/Pacific region was strong in 2018, but a downturn is coming, especially with demand growth slowing down.

Supply growth is at 3.6% for the region in 2019 while demand growth is at 2.7%. The story is different for every market in the region, depending on where you look, but Australia and China are having a particularly rough time with declines in RevPAR, Rossmann said.

While performance isn’t the best in some markets, the most outbound tourism from China is being seen in APAC compared to other regions.

Central/South America
Brazil saw significant supply growth from the 2016 Olympics, but the city is on a recovery track, Rossmann said.

GDP and demand levels were up in 2017 and 2018, and strong hotel performance has been seen, he said.

No Comments

Comments that include blatant advertisements or links to products or company websites will be removed to avoid instances of spam. Also, comments that include profanity, lewdness, personal attacks, solicitations or advertising, or other similarly inappropriate or offensive comments or material will be removed from the site. You are fully responsible for the content you post. The opinions expressed in comments do not necessarily reflect the opinions of Hotel News Now or its parent company, STR and its affiliated companies. Please report any violations to our editorial staff.