HVS Report - The Hostel and Budget Traveller Market in Europe Gaining Momentum - By Harry AB Douglass (PDF Dowlnoad)
The vibrant limited-to-select service hotel sector is at the forefront of the property market.
Hajj, the Islamic pilgrimage to Makkah and Medina, is traditionally a driver of positive performance for hotels. Makkah was able to maintain high levels of revenue per available room during this period, similar to last year. At the start of Hajj, Makkah was able to achieve RevPAR of nearly SAR2,000. In Medina, hotels saw RevPAR increases beyond SAR1,100 for three consecutive days.
The 2014 World Cup proved a much-needed boost of good publicity for Brazil. The country is currently facing a recession and inflation stands at 6.5 percent. But over the summer, more than 1 million foreign tourists flocked to the South American country to watch their teams compete. Early indicators showed that each of the 12 host cities benefitted from the influx of tourists, and it looks like the party continues for the countrys hotel sectordespite broader economic challenges in Brazil.
Overall, in year-over-year results, the U.S. hotel industry's occupancy was up 5.3 percent to 68.0 percent; its average daily rate rose 4.6 percent to US$118.87; and its revenue per available room increased 10.1 percent to US$80.81.
In 2015, STR and Tourism Economics predict occupancy to rise 1.1 percent to 65.1 percent, ADR to increase 5.0 percent to US$121.37 and RevPAR to grow 6.2 percent to US$79.06. Demand is expected to increase 2.4 percent, and supply is predicted to increase 1.3 percent in 2015.