Hotel Rate Growth Booms Outside North America

Sep.1, 2007: Year-over-year hotel rates have increased by double-digit percentages worldwide with the exception of North America, according to the latest data available from Smith Travel Research and The Bench.The sharpest rate increase has been in the Middle East/Africa region, which saw the average daily rate increase by 13.6 percent to $142.67 in July, compared with the same period in 2006. Revenue per available room was up 20.7 percent for the region. The Middle East and Africa also was the only region with a significant increase in occupancy, which was up 6.2 percent. That was boosted largely by a 13 percent increase in occupancy in Northern Africa.Europe remains the most expensive region for hotels, with average daily rates for July up 12.5 percent to $154.52. Year-over-year occupancy was nearly flat, and the regions RevPAR increased by 12.8 percent.As a whole, the average daily rate in the Asia/Pacific region increased by 13 percent to $128.60. Within that region, however, Southeastern Asia and Central and South Asia had the most dramatic rate increases worldwide, up by 30.3 percent and 35.4 percent, respectively. Occupancy was nearly flat for the region, and RevPAR was up by 12.8 percent.In the Americas, the average daily rate increased by only 5.5 percent to $104.93. Rates in Central and South America, however, increased by 17.6 percent and 23.8 percent respectively. Occupancy was down by 0.4 percent for the region overall, and RevPAR increased by 5.1 percent.Numerous individual markets monitored by Smith Travel Research and The Bench also had double-digit year-over-year average daily rate increases in July, including Cairo, Hong Kong, London, New York, Paris, Rome and Sydney.

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