Record revPAR And Room Rate Growth In 2007

18th January 2008 (Last Updated January 18th, 2008 09:21)

For the first time, all global regions recorded double-digit revPAR growth in 2007, says industry analysts Deloitte. According to its HotelBenchmark Survey, the highest revPAR growth was seen in Central and South America, up 24 percent to US$75, due to average room rate increases of 19.

For the first time, all global regions recorded double-digit revPAR growth in 2007, says industry analysts Deloitte.

According to its HotelBenchmark Survey, the highest revPAR growth was seen in Central and South America, up 24 percent to US$75, due to average room rate increases of 19.7 percent.

The Middle East saw increases of 16.8 percent to US$112, with Muscat recording the highest revPAR increase – a whopping 52.8 percent hike on 2006.

Meanwhile, revPAR in Lebanon fell to US$44 due to instability in the area.

Europe ended the year up 15.8 percent at US$114, but levels in local currency are more conservative at 6.3 percent, the report says.

The Asia-Pacific recorded the lowest revPAR increase of 12.7 percent, but room rates in some areas recorded very strong growth, such as Mumbai at 46.2 percent.

Deloitte executive director of HotelBenchmark Lorna Clarke says this is the first year all regions have posted double-digit growth in both room rates and revPAR.

“Hotel performance in 2007 has been underpinned by strong economic fundamentals, stimulating both business and leisure travel,” she says.

“Looking forwards, this is likely to be held back slightly during 2008, as the pace of world-wide economic growth slows.”

By staff writer