Hotel Investor Newsletter

Q3 2018 Review
Introduction
Welcome to the Q3 2018
edition of STR’s Hotel
Investor News, a quarterly
publication that provides
insights on global hotel
performance.
Founded in 1985, STR
maintains a presence in 15
countries with a corporate
North American headquarters
in Hendersonville, Tennessee,
and an international
headquarters in London,
England.
STR Quick Facts
Additionally, we are pleased
to share our new white
paper MIPIM U.K. Hospitality
60K+
Hotel
Real Estate Game Changers.
This research from PKF and
STR reveals industry game Hotels
changers and the potential
challenges and opportunities
faced by hospitality real estate
developers with an interest in
the U.K.
8.1M+
Rooms
Please click on the icon
to download the document which
reveals the data behind the
buoyant UK hospitality sector.
300+
Employees
30 yrs +
Expertise
Republication of this document without STR’s prior approval is strictly prohibited
Q3 2018 RevPAR 4.8
Europe Americas Middle East & Africa Asia Pacific
1.3

Evolution by continent
compared to Q3 2017

Republication of this document without STR’s prior approval is strictly prohibited

Americas
The U.S. hotel industry reported mixed year-over-year performance
results during Q3 2018 Detroit New York
San Francisco/ +0.7%
+7.1%
Demand (room nights sold) grew 1.6% year over year, while supply San Mateo
(room nights available) increased 2.0% for the third-consecutive +7.0% San Jose Washington, DC-MD-VA
-3.4%
quarter.  -1.7% Houston
-13.1%
“Because of the comparison with the post-hurricane demand
period of 2017, September broke the industry’s 102-month stretch
of consecutive RevPAR increases and ultimately pulled down Mexico City
growth for the quarter as a whole,” said Bobby Bowers, STR’s +10.1% Puerto Rico
senior VP of operations. “Actually, that 1.7% rise in RevPAR +11.3%
was the lowest for a Q3 since the current growth cycle
started in 2010. Regardless, growth is growth, and overall +2.5%
industry performance remains in good shape with our (USD CC)
forecast calling for growth through at least 2019.” Quito
+8.3%
San Francisco/San Mateo, California posted the highest lift in
ADR (+8.3% to US$257.03).
Philadelphia, Pennsylvania-New Jersey saw the second-largest Lima
increases in occupancy (+4.4% to 75.1%) and RevPAR (+8.2% to -15.1%
US$98.57).
Rio de Janeiro
Occupancy in Lima decreased for the fifth consecutive month. +6.1%
STR analysts attribute performance declines to an influx of new
supply (+7.2%) combined with a dip in demand (-3.5%). Sao Paolo
+19.6%
Demand (room nights sold) increased 16.3% in the Quito
market. STR analysts note that an improved political situation
in Ecuador has helped increase tourism.

*Q3 2018 RevPAR % change compared with Q3 2017 Republication of this document without STR’s prior approval is strictly prohibited
 Asia Pacific
STR analysts note that key markets in the region, such as
Thailand, saw a softening in demand growth from mainland
China.
Chengdu Osaka
+17.8% Busan -14.7% Hong Kong hotels have posted a year-over-year increase in
+10.7% RevPAR for 17 consecutive months. According to STR analysts,
the September increase had to be driven primarily by ADR
growth as Typhoon Mangkhut led to three days with double-
digit declines in demand and occupancy (15-17 September). 
Danang Hong Kong SAR
Goa -18.3% RevPAR of Osaka has declined year over year for seven
+7.6%
+0.3% consecutive months in the market. STR analysts note that
Typhoon Jebi had a significant impact on Osaka’s performance
levels as did continued significant supply growth. 
Sri Lanka
Phuket
-10.1%
+1.3%
+7.0% (USD CC)

Bandung
Maldives +7.3%
-2.2%

Brisbane
-4.5%

Auckland Area
-1.4%

*Q3 2018 RevPAR % change compared with Q3 2017 Republication of this document without STR’s prior approval is strictly prohibited
Europe
Helsinki
Europe’s hotel industry reported mixed results +2.4%
in the three key performance metrics during
September 2018.
The absolute occupancy of Sofia was the highest Aberdeen
for any month in Sofia since October 2016. The ADR -4.6%
value was the highest for a September since 2008.
The absolute ADR and RevPAR levels were the Manchester Centre
highest for any September in STR’s Budapest +1.3%
database. STR analysts attribute the strong London Dusseldorf
performance to an increase in inbound tourism and +4.3% -4.1%
a continued lack of supply growth in the market. +4.8% Paris
The absolute occupancy level was the highest for an
(EUR CC) +22.9% Zurich
August in Paris since 2013, while the absolute ADR +6.2% Budapest
and RevPAR levels were the highest for the month Milan +4.8%
since 2014. Consistent demand growth (+13.7%
Bordeaux -2.8%
+4.9% Bucharest
for August) has fueled Paris’ performance recovery
during the past two years. Sofia -1.3%
Barcelona +18.0%
-11.1%
Ankara
Lisbon +39.2%
+4.9%
Malaga
+9.3%
.............................................................................

From the press release “STR: Europe hotel performance for

August 2018” link here:

http://www.hotelnewsnow.com/Articles/290550/STR-
Europe-hotel-performance-for-August-2018
*Q3 2018 RevPAR % change compared with Q3 2017 Republication of this document without STR’s prior approval is strictly prohibited
 Tunisia
+19.5%
Beirut
-3.5% Manama Middle East/Africa
-2.6% Hotels in the Middle East reported September
Dubai
-12.2% 2018 performance declines, while hotels in
Riyadh Africa posted growth across the three key
+0.7% performance metrics.
Abu Dhabi Muscat
-1.7% Sharjah -5.7% Beirut’s declines were largely attributable
-14.8% to high performance levels last September,
according to STR analysts. Performance growth
was well-pronounced during most of the months
of 2017 due to a stabilized political climate
and a boost in tourism. Despite the year-over-
year performance decrease, Beirut’s absolute
occupancy level was the second-highest for a
+2.4% September in the market over the last seven
years. Only September 2017 (71.3%) was higher
Seychelles (USD CC) during that time. 
+5.3%
Nairobi In Riyadh, STR analysts attribute a 33.4%
+11.4% jump in demand (room nights sold) to four
events hosted at the Riyadh International
Convention & Exhibition Center. The 56.3%
absolute occupancy level was the highest for
any September in the market since 2014. The
highest occupancy night came on 25 September
(78.5%), which was the first day of the SFDA
Mauritius Annual Conference & Exhibition. The decline
+12.2% in monthly ADR was likely due to continued
significant supply growth (+5.8% year to date).

Cape Town
Centre & South
-9.5% *Q3 2018 RevPAR % change compared with Q3 2017 Republication of this document without STR’s prior approval is strictly prohibited
Meet our team

Our team attends and November

presents the latest
industry data at various Maximum Occupancy Equiphotel Trade Show E&Y Hotel Conference
events worldwide Sydney, Australia Paris, France Munich, Germany
throughout the year. (31 November–1 December) (11-14 November) (22 November)
Over November, you
can find us at: Canberra Hotel Market Update SO!APART Arbeitskreises
& Economic Outlook Forum Leipzig, Germany Hotelimmobilien
Canberra, Australia (14 November) Munich, Germany
(7 November) (23 November)
IHIS - Israel Hotel
IHIDCF - International Investment Summit Hotel Trends Poland
Hotel Investment & Tel Aviv, Israel & CEE
Design Club Forum (19-21 November) Warsaw, Poland
Vienna, Austria (26 November)
(8 November)
China Hotels Brand HOFEL
Value Summit Hong Kong
CAPA Asia Aviation & Nanjing, China
Corporate Travel Summit (30 November)
(??? November)
Singapore
(8-9 November)

Republication of this document without STR’s prior approval is strictly prohibited

STR Industry
Partners Contacts
Asia Pacific
Jesper Palmqvist
Area Director – Asia Pacific
JPalmqvist@STR.com
+65 6800 7850
Central & South America
Patricia Boo
Area Director
PBoo@STR.com
+55 (11) 30932765
Middle East & Africa
Philip Wooller
Area Director
PWooller@STR.com
+971 (0) 557701202
Europe North America
Thomas Emanuel Lynsie Bennett
Director of Business Development Director of Business Development,
TEmanuel@str.com Industry Partners and Destinations
+44 (0)207 922 1949 LBennett@str.com
+1 (615) 824 8664 x3374
Sophie Colvin
Senior Business Development
Manager – Industry Partners
SColvin@STR.com
+44 (0)207 922 1943 General Inquiries:
industrydata@str.com
Nele Magi
Senior Account Manager –
Industry Partners
NMagi@STR.com
+44 (0)207 922 1972
Alex Robinson
Senior Manager – Industry Partners
ARobinson@STR.com
+44 (0) 203 890 0062
Republication of this document without STR’s prior approval is strictly prohibited