Global economic slowdown hits hotels – STR Globa
The global economic slowdown is having an impact on the global hotel industry, according to the latest data from the world’s leading hotel benchmarking firm, STR Global. Figures for November 2008 show across-the-board declines in occupancy levels, with all four global regions feeling the effects of lower demand. In terms of average room rate (in US dollars), only the Middle East & Africa region saw an increase, with Asia Pacific, Europe and the Americas all seeing year-on-year declines. As a result, revenue per available room (revPAR) saw double-digit declines in these three regions, with Middle East/Africa showing a 7.0% revPAR rise.
Beijing saw the largest year-on-year occupancy drop, falling 32.1% to just 49.9% in November 08, while event Dubai’s previously buoyant hotel industry saw a 5.6% occupancy drop, to 84.9%. The figures in both the UAE and China may be reflective of the significant number of new hotels entering the market, diluting occupancy levels at a time when demand is already slowing. The drop in average room rates across Asia Pacific appears however, to show that Asian hoteliers are reacting to the demand shortage by lowering rates to attract more customers.
“Although year-to-date numbers still are fairly presentable due to a strong first half of the year, November saw a sharp drop in demand, and revPAR is suffering as a result,” said James Chappell, Managing Director for STR Global.
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