interim hotel report - hotelier.de · hrg interim hotel report january – june 2016 3 contents...

A Hogg Robinson Group Company

Interim Hotel Report

January – June 2016

HRG Interim Hotel Report January – June 2016 2

© Hogg Robinson Group 2016CONTENTS

Contents 3

Key Findings

4

Top 50 Cities

6

Top Five Increases In Local Currency

7

Top Five Decreases In Local Currency

8

Global Regions ARR GBP

9

North America Focus

10

Europe Focus

11

Asia Pacific Focus

12

MEWA Focus

13

UK Focus



•PARIS•IS THE UK’S MOST EXPENSIVE CITY

Key Findings

Moscow REMAINS THE WORLD’S MOST

EXPENSIVE CITY FOR THE 12TH CONSECUTIVE YEAR

The world’s top 50 most expensive cities remain the same with small place changes in rankings

AVERAGE ROOM RATES by region saw little change with the exception of Europe and MEWA, both regions show growth in ARR

IN NORTH AMERICA, SAN FRANCISCO WAS THE REGION’S MOST EXPENSIVE CITY

(2015’s interim report saw New York ranked first)

is the most expensive city in the Eurozone

– • –

F O L LO W E D C LO S E LY B Y

F R A N K F U R T & B R U S S E L S

$

$

$ $$

1

M•PARIS•

h

LONDON

and has enjoyed a

1.77%INCREASE IN ARR

LONDON

PARIS

MOSCOW

SAN FRANSISCO



Top 50 Cities

Ranking 2016

Ranking 2015

City Currency 2016 Exchange Rate

2015 Exchange Rate

Jan-Jun 2016 ARR GBP


GBP ARR % Var

Jan-Jun 2016 ARR Local


Local ARR % Var

Exchange Rate % Var

1 1 MOSCOW RUR 100.329 87.8296 £257.85 £266.22 -3.14% RUR 25,869.83 RUR 23,382.00 10.64% 14.23%

2 3 SAN FRANCISCO USD 1.4329 1.5233 £247.41 £222.09 11.40% USD 354.51 USD 338.31 4.79% -5.93%

3 11 WASHINGTON USD 1.4329 1.5233 £232.90 £206.93 12.55% USD 333.72 USD 315.22 5.87% -5.93%

4 2 NEW YORK CITY USD 1.4329 1.5233 £229.19 £222.79 2.87% USD 328.41 USD 339.38 -3.23% -5.93%

5 12 TOKYO JPY 159.884 183.19 £204.45 £171.64 19.12% JPY 32,688.28 JPY 31,442.73 3.96% -12.72%

6 4 GENEVA CHF 1.4067 1.4423 £203.12 £197.65 2.77% CHF 285.73 CHF 285.07 0.23% -2.47%

7 7 LAGOS NGN 288.659 297.561 £197.27 £186.43 5.81% NGN 56,943.76 NGN 55,474.30 2.65% -2.99%

8 6 HONG KONG HKD 11.1296 11.8107 £196.29 £193.71 1.33% HKD 2,184.63 HKD 2,287.85 -4.51% -5.77%

9 5 ZURICH CHF 1.4067 1.4423 £189.80 £196.86 -3.59% CHF 266.99 CHF 283.93 -5.97% -2.47%

10 10 RIO DE JANEIRO BRL 5.299 4.515 £185.28 £177.00 4.68% BRL 981.80 BRL 799.16 22.85% 17.36%

11 8 SYDNEY AUD 1.954 1.9466 £184.15 £179.57 2.55% AUD 359.83 AUD 349.55 2.94% 0.38%

12 19 STOCKHOLM SEK 11.9347 12.7436 £181.99 £155.60 16.96% SEK 2,172.00 SEK 1,982.90 9.54% -6.35%

13 9 PARIS EUR 1.2834 1.3643 £175.90 £177.31 -0.80% EUR 225.75 EUR 241.90 -6.68% -5.93%

14 13 MIAMI USD 1.4329 1.5233 £175.33 £170.35 2.92% USD 251.23 USD 259.49 -3.18% -5.93%

15 18 SINGAPORE SGD 1.9774 2.0548 £174.71 £163.69 6.73% SGD 345.47 SGD 336.35 2.71% -3.77%

16 15 LONDON GBP 1 1 £172.12 £169.12 1.77% GBP 172.12 GBP 169.12 1.77% 0.00%

17 14 BASEL CHF 1.4067 1.4423 £168.69 £169.60 -0.54% CHF 237.30 CHF 244.61 -2.99% -2.47%

18 17 SEOUL KRW 1,688.06 1,672.61 £166.32 £163.73 1.58% KRW 280,758.14 KRW 273,856.44 2.52% 0.92%

19 16 DUBAI AED 5.26118 5.7717 £163.84 £165.04 -0.73% AED 861.99 AED 952.56 -9.51% -8.85%

20 22 FRANKFURT EUR 1.2834 1.3643 £160.39 £150.26 6.74% EUR 205.84 EUR 205.00 0.41% -5.93%

21 25 NAIROBI KES 143.004 140.476 £158.71 £145.33 9.21% KES 22,696.16 KES 20,415.38 11.17% 1.80%

22 20 COPENHAGEN DKK 9.5607 10.1697 £158.46 £151.57 4.55% DKK 1,514.99 DKK 1,541.42 -1.71% -5.99%

Moscow continues to dominate as the world’s most

expensive city for the 12th consecutive year. A slight fall in

average rate in GBP was effected massively by the large

movement in the exchange rate, which saw a modest 3.14%

fall in GBP translated into a large 10.64% rise in local currency.

21 of the top 50 cities have seen an average room rate increase (23

cities saw room rates increase in the 2015 report), showing uncertainty

continuing to impact global markets. 23 cities saw a decrease in average

room rates and six cities remained the same.



Ranking 2016

Ranking 2015

City Currency 2016 Exchange Rate

2015 Exchange Rate



GBP ARR % Var



Local ARR % Var

Exchange Rate % Var

23 33 PHILADELPHIA USD 1.4329 1.5233 £151.32 £130.07 16.34% USD 216.83 USD 198.14 9.43% -5.93%

24 29 AMSTERDAM EUR 1.2834 1.3643 £149.48 £135.03 10.70% EUR 191.84 EUR 184.22 4.14% -5.93%

25 26 MILAN EUR 1.2834 1.3643 £147.77 £144.93 1.96% EUR 189.65 EUR 197.73 -4.09% -5.93%

26 21 OSLO NOK 12.0812 11.7929 £147.44 £150.51 -2.04% NOK 1,781.25 NOK 1,774.95 0.36% 2.44%

27 27 SHANGHAI CNY 9.3647 9.3112 £145.16 £137.36 5.68% CNY 1,359.38 CNY 1,278.99 6.29% 0.57%

28 28 BEIJING CNY 9.3647 9.3112 £143.56 £137.18 4.65% CNY 1,344.40 CNY 1,277.31 5.25% 0.57%

29 23 SAO PAULO BRL 5.299 4.515 £142.54 £150.22 -5.11% BRL 755.32 BRL 678.24 11.36% 17.36%

30 30 NEW DELHI INR 96.1601 95.5957 £138.11 £134.72 2.52% INR 13,280.67 INR 12,878.65 3.12% 0.59%

31 32 BRUSSELS EUR 1.2834 1.3643 £138.08 £131.11 5.32% EUR 177.21 EUR 178.87 -0.93% -5.93%

32 24 HOUSTON USD 1.4329 1.5233 £137.95 £145.85 -5.42% USD 197.67 USD 222.17 -11.03% -5.93%

33 35 BARCELONA EUR 1.2834 1.3643 £137.34 £125.74 9.23% EUR 176.26 EUR 171.55 2.75% -5.93%

34 42 DUSSELDORF EUR 1.2834 1.3643 £136.97 £127.77 7.20% EUR 175.79 EUR 174.32 0.84% -5.93%

35 39 CAPE TOWN SAR 22.0655 18.1359 £133.57 £122.07 9.42% SAR 2,947.29 SAR 2,213.85 33.13% 21.67%

36 31 ATHENS EUR 1.2834 1.3643 £132.58 £131.33 0.95% EUR 170.15 EUR 179.17 -5.03% -5.93%

37 44 PITTSBURGH USD 1.4329 1.5233 £132.13 £117.01 12.92% USD 189.33 USD 178.24 6.22% -5.93%

38 46 MUNICH EUR 1.2834 1.3643 £125.36 £114.05 9.92% EUR 160.89 EUR 155.60 3.40% -5.93%

39 47 BERLIN EUR 1.2834 1.3643 £121.06 £111.97 8.12% EUR 155.37 EUR 152.76 1.71% -5.93%

40 43 ABU DHABI AED 5.26118 5.7717 £120.90 £117.82 2.61% AED 636.08 AED 680.02 -6.46% -8.85%

41 34 TORONTO CAD 1.9063 1.8794 £119.39 £129.60 -7.88% CAD 227.59 CAD 243.57 -6.56% 1.43%

42 45 HAMBURG EUR 1.2834 1.3643 £118.80 £114.67 3.60% EUR 152.47 EUR 156.44 -2.54% -5.93%

43 38 MUMBAI INR 96.1601 95.5957 £118.69 £123.23 -3.68% INR 11,413.24 INR 11,780.26 -3.12% 0.59%

44 48 MADRID EUR 1.2834 1.3643 £113.22 £109.34 3.55% EUR 145.31 EUR 149.17 -2.59% -5.93%

45 40 ROME EUR 1.2834 1.3643 £111.87 £120.88 -7.45% EUR 143.57 EUR 164.92 -12.94% -5.93%

46 36 ISTANBUL TRL 4.1834 3.9026 £111.45 £122.67 -9.15% TRL 466.24 TRL 478.73 -2.61% 7.20%

47 41 JOHANNESBURG SAR 22.0655 18.1359 £110.25 £120.71 -8.67% SAR 2,432.72 SAR 2,189.18 11.12% 21.67%

48 50 BANGALORE INR 96.1601 95.5957 £99.07 £99.15 -0.08% INR 9,526.58 INR 9,478.31 0.51% 0.59%

49 37 HEATHROW GBP 1 1 £98.63 £99.45 -0.82% GBP 98.63 GBP 99.45 -0.82% 0.00%

50 49 MANCHESTER GBP 1 1 £98.27 £99.00 -0.74% GBP 98.27 GBP 99.00 -0.74% 0.00%



Top Five Increases In Local Currency

CAPE TOWN

NAIROBI

RIO DE JANEIRO

All the big positive movers in average room

rates in this period with the exception of one

have seen large swings in the exchange rate

influence what was a modest move in GBP to

large increases in local currency.

The exception is Nairobi, where continued

reliance on upper scale hotels for added

security means average room rates continue

to rise despite only a modest move in

exchange rate.

SAO PAULO JOHANNESBURG

CAPE TOWN


SAR 2,947.29Jan-Jun 2015 ARR Local

SAR 2,213.85Local ARR % Var

33.13%Exchange Rate % Var

21.67%

RIO DE JANEIRO


BRL 981.80Jan-Jun 2015 ARR Local

BRL 799.16Local ARR % Var


17.36%

SAO PAULO


BRL 755.32Jan-Jun 2015 ARR Local

BRL 678.24Local ARR % Var


17.36%

NAIROBI


KES 22,696.16Jan-Jun 2015 ARR Local

KES 20,415.38Local ARR % Var


1.80%

JOHANNESBURG


SAR 2,432.72Jan-Jun 2015 ARR Local

SAR 2,189.18Local ARR % Var


21.67%



Top Five Decreases In Local Currency

ROME

DUBAI

ABERDEEN

PARIS

HOUSTON

ABERDEEN


GBP 97.31Jan-Jun 2015 ARR Local

GBP 123.39Local ARR % Var

-21.14%Exchange Rate % Var

0.00%

ROME


EUR 143.57Jan-Jun 2015 ARR Local

EUR 164.92Local ARR % Var


-5.93%Rome saw a modest fall in average room rate in GBP which was nearly doubled as a result of movement in the exchange rate; the city saw a larger average room rate fall in local currency.

HOUSTON


USD 197.67Jan-Jun 2015 ARR Local

USD 222.17Local ARR % Var


-5.93%

PARIS


EUR 225.75Jan-Jun 2015 ARR Local

EUR 241.90Local ARR % Var


-5.93%Paris also saw a fairly flat movement in GBP in average room rate which was again turned negative in local currency by the exchange rate movement.

DUBAI


AED 861.99Jan-Jun 2015 ARR Local

AED 952.56Local ARR % Var


-8.85%Dubai saw a more or less flat average room rate movement in terms of GBP as more and more rooms are added to the city in preparation for Expo 2020. The movement in exchange rate saw this translate into a fall in average room rate in local currency.

Aberdeen and Houston continue to see the effects of falling demand driven by the oil and gas sector, along with the impact of a few new openings.

Regional Performance

2016 so far has seen a slowdown in average

room rate growth in general with only two

global regions – Europe and MEWA – recording

overall growth. Cities within each region

continue to show a large disparity in terms of

average room rate movement.

Once again this supports the findings that

regional performance is becoming less

dominant when compared to mega city

performance within regions.



EUROPE average

APR 2016

£118.54APR 2015

£115.25MEWA average

APR 2016

£187.65APR 2015

£157.13

AMERICAS average

APR 2016

£136.94APR 2015

£140.50

ASIA average

APR 2016

£129.88APR 2015

£132.52

AFRICA average

APR 2016

£123.04APR 2015

£138.30

Global Regions ARR GBP



Houston once again saw a modest fall in GBP driven by the downturn in the oil

and energy sector and magnified by the exchange rate movement to a much

larger -11.03% drop in average room rate locally.

North America Focus

City ARR Local 16 ARR Local 15 Local Var Exc Rate Var

SAN FRANCISCO USD 354.51 USD 338.31 4.79% -5.93%

WASHINGTON DC USD 333.72 USD 315.22 5.87% -5.93%

NEW YORK CITY USD 328.41 USD 339.38 -3.23% -5.93%

BOSTON USD 328.06 USD 319.01 2.84% -5.93%

LOS ANGELES USD 280.78 USD 269.09 4.34% -5.93%

CHICAGO USD 238.51 USD 263.55 -9.50% -5.93%

VANCOUVER CAD 234.95 CAD 212.73 10.45% 1.43%

TORONTO CAD 227.59 CAD 243.57 -6.56% 1.43%

PHILADELPHIA USD 216.83 USD 198.14 9.43% -5.93%

OTTAWA CAD 216.08 CAD 188.69 14.51% 1.43%

HOUSTON USD 197.67 USD 222.17 -11.03% -5.93%

MONTREAL CAD 188.40 CAD 175.03 7.64% 1.43%

Travel to New York City continues to increase,

but with many more options now available

including the sharing economy, a lower

average room rate growth in GBP turned

slightly negative due to the exchange rate

movement. Occupancy in many areas is lower

than projected.

Washington DC is seeing an increase in

demand as the presidential election year

progresses. Even with the exchange rate

pulling the average room rate backwards for

international visitors the city delivered a 5.87%

increase in average room rate locally.

San Francisco and Boston are feeling the effects

of strong corporate demand coupled with no

new bed stock pushing up average room rates

in both cities.

Chicago has seen a softer convention season

and as such average room rate has fallen

modestly which was magnified by the

movement in exchange rate.

Vancouver has seen a very strong leisure base

top up a buoyant corporate demand coupled

with no significant new openings.

Ottawa has seen very strong leisure demand

coupled with corporate demand which has

driven up the average room rates.

Montreal saw a major hotel close down taking

approximately 450 rooms out of the city, with

strong corporate demand this resulted in an

increase in average room rates along with an

exchange rate movement that pushed rates

even higher.



Moscow continues to dominate as the world’s most expensive city for the 12th

consecutive year. A slight fall in average rate in GBP was effected massively by

the large movement in the exchange rate, which saw a modest 3.14% fall in GBP

translated into a large 10.64% rise in local currency.

Europe Focus


MOSCOW RUR 25,869.83 RUR 23,382.00 10.64% 14.23%

GENEVA CHF 285.73 CHF 285.07 0.23% -2.47%

PARIS EUR 225.75 EUR 241.90 -6.68% -5.93%

FRANKFURT EUR 205.84 EUR 205.00 0.41% -5.93%

BRUSSELS EUR 177.21 EUR 178.87 -0.93% -5.93%

BARCELONA EUR 176.26 EUR 171.55 2.75% -5.93%

ATEHNS EUR 170.15 EUR 179.17 -5.03% -5.93%

VIENNA EUR 165.44 EUR 161.83 2.23% -5.93%

BERLIN EUR 155.37 EUR 152.76 1.71% -5.93%

HAMBURG EUR 152.47 EUR 156.44 -2.54% -5.93%

MADRID EUR 145.31 EUR 149.17 -2.59% -5.93%

DUBLIN EUR 144.25 EUR 132.83 8.60% -5.93%

Paris was the most expensive city in the

Eurozone despite showing a drop in average

room rates in local currency. In GBP the average

room rate remained almost flat year on year

with the local drop reflecting the movement in

exchange rate.

Dublin saw rising corporate demand coupled

with strong leisure demand and limited new

openings. Together this drove a large 8.6%

average room rate growth in local currency,

even coupled with a backwards movement in

exchange rate.

Athens saw a flat performance in average room

rate in GBP but the movement in exchange

rate saw the modest backwards movement of

-5.03% locally.

Barcelona benefits from strong leisure business

which tops up a growing corporate demand

and saw a modest 2.75% increase in average

room rate.

Madrid saw a decline of 2.59% in average

room rate. This was driven by the movement

in exchange rate turning a 3.55% rise in GBP

average room rate negative locally.



Hong Kong actually saw a small rise in average room rates in GBP. Movement in

exchange rate saw that translated locally into a small fall in average room rate.

Asia Pacific Focus

Tokyo saw a large increase in average room

rate in GBP due to increased demand. However

when coupled with a large negative movement

in the exchange rate this saw only a modest

3.9% increase locally.

An increase in demand in New Delhi has filled

many of the new mid-market rooms that came

on line over the last 12 months resulting in a

modest average room rate growth for the city.

Mumbai and Hyderabad saw a softening of

demand from a group’s perspective which

meant there was more capacity. This drove a

small negative average room rate movement in

both cities.

Even with the high supply of hotel rooms in

both Beijing and Shanghai, domestic travel

within China is driving the average room

rates higher. Three months of positive and

accelerating growth rates confirm a recovery in

business activity for China’s hoteliers.

The increase in average room rate in Sydney

was due to large conferences and special

events for the first six months of the year.

January to March is High Season and so a

combination of summer holiday and also pre

and post cruise accommodation influenced

demand. City ARR Local 16 ARR Local 15 Local Var Exc Rate Var

HONG KONG HKD 2,184.63 HKD 2,287.85 -4.51% -5.77%

SINGAPORE SGD 345.47 SGD 336.35 2.71% -3.77%

TOKYO JPY 32,688.28 JPY 31,442.73 3.96% -12.72%

NEW DELHI INR 13,280.67 INR 12,878.65 3.12% 0.59%

MUMBAI INR 11,413.24 INR 11,780.26 -3.12% 0.59%

BANGALORE INR 9,526.58 INR 9,478.31 0.51% 0.59%

HYDERABAD INR 8,479.40 INR 8,714.66 -2.70% 0.59%

BEIJING CNY 1,344.40 CNY 1,277.31 5.25% 0.57%

SHANGHAI CNY 1,359.38 CNY 1,278.99 6.29% 0.57%

SYDNEY AUD 359.83 AUD 349.55 2.94% 0.38%



Dubai continues to add new hotel stock in preparation for Expo 2020 and so

any new demand is being swallowed up by these new rooms. This together with

the exchange rate movement has resulted in a large decline of 9.51% locally in

average room rate.

MEWA Focus

Abu Dhabi saw a small increase in average

room rates in GBP, however the exchange

rate movement saw this turn negative in

local currency.

Istanbul has seen a decline in average room

rates in GBP as demand continues to soften

with political unrest in Turkey and the war in

Syria. Even with the movement in exchange

rate the average room rate movement has

remained negative locally.

Cairo has seen overall demand flat line in

the first six months of 2016 with barely any

movement in GBP average room rates. This was

translated into a modest average room rate

growth locally due to the movement in the

exchange rate.

Doha has seen the effect of the dip in oil prices

driving down corporate demand. This coupled

with a large movement in exchange rate means

the city shows a large 13.07% fall in average

room rates in local currency.

Manama sees new supply constricting growth

in average room rate with a small decline in

GBP translated to a larger decline locally due to

the movement in the exchange rate.


DUBAI AED 861.99 AED 952.56 -9.51% -8.85%

ABU DHABI AED 636.08 AED 680.02 -6.46% -8.85%

MANAMA BHD 88.49 BHD 96.27 -8.09% -6.12%

ISTANBUL TRL 466.24 TRL 478.73 -2.61% 7.20%

CAIRO EGP 1,528.09 EGP 1,442.62 5.92% 5.29%

DOHA QAR 860.53 QAR 989.86 -13.07% -6.04%



London growth for the first six months is lower than the 3.09% seen during 2015.

A weaker start to the year in corporate demand and uncertainty around the EU

referendum has seen overall demand increase but not to the extent many hotel

groups were predicting.

UK Focus

Aberdeen continues to feel the effect of the

downturn in the oil industry resulting in less

demand. Together with several new openings

in 2015 means hotels are fighting to retain

a shrinking pool of business. As a result the

average room rate saw an even sharper decline

in the last six months than in 2015 as a whole.

Belfast saw a modest decline in average room

rate as new bed stock came in to play.

The majority of the rest of the UK was quite

flat in terms of average room rates with a few

exceptions:

• Edinburgh – Strong corporate demand

and a buoyant leisure base combined to

see a strong first six months for the city

seeing a 5.02% rise in average room rate.

• Liverpool – With six new hotels opening

in 2015 alone, bed stock in the city has

started to outpace demand, resulting in a

small fall in average room rates in the first

six months of -2.05%.

City ARR GBP 15 ARR GBP 15 GBP Variance

LONDON GBP 172.12 GBP 169.12 1.77%

HEATHROW GBP 98.63 GBP 99.45 -0.82%

MANCHESTER GBP 98.27 GBP 99.00 -0.74%

ABERDEEN GBP 97.31 GBP 123.39 -21.14%

EDINBURGH GBP 94.53 GBP 90.01 5.02%

BELFAST GBP 90.65 GBP 92.65 -2.16%

GLASGOW GBP 90.51 GBP 91.47 -1.05%

NEWCASTLE GBP 89.41 GBP 89.44 -0.03%

LIVERPOOL GBP 85.57 GBP 87.36 -2.05%

CARDIFF GBP 79.75 GBP 78.50 1.59%

London by Region

2016 Jan-Jun Average Rates

by Location

Hammersmith & Kensington

£167+1.5%

West End & Central

£179-0.5%

City

£189+3.5%

Docklands

£178+6.9%

HRG Interim Hotel Survey June 2016 14

www.hrgworldwide.com

Now in its 23rd year, the HRG Interim Hotel Report looks at hotel

room rates for key business destinations across the world.

For more information please contact:

Margaret Bowler

E [email protected]

T +44 (0) 1252 881 000

http://www.hrgworldwide.com

mailto:margaret.bowler%40hrgworldwide.com?subject=

interim hotel report - hotelier.de · hrg interim hotel report january – june 2016 3 contents...

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