Interim Hotel Survey

Interim Hotel Survey
January – June 2015
© Hogg Robinson Group 2015
A Hogg Robinson Group Company
HRG Interim Hotel Survey
January –­ June 2015
Contents
Interim Hotel Survey 4
“It’s been an
interesting half
year for the hotel
business…”
Survey Results 6
The Regions 10
About the HRG Interim Hotel Survey 16
hrgworldwide.com
© Hogg Robinson Group 2015
3
HRG Interim Hotel Survey
January –­ June 2015
Interim Hotel Survey
■■
January to June 2015
The news that the economy is growing is borne out by the latest HRG
Interim Hotel Survey. Now in its 22nd year, the bi-annual survey from
■■
the global travel management company, shows an increase in the number
of hotel rooms booked by the company in the period January to June 2015
compared to the same period in 2014.
The full effects of the slowdown in the oil
■■
Geneva has dropped one place from third
industry can be witnessed in both Aberdeen
to fourth due in part to the removal of the
and Houston. For the first time in many
Swiss Franc cap. This is making travel
years hotels in both cities are having
more expensive and so demand is slowing.
to significantly discount room rates to
Corporates are down trading into mid-
maintain demand
market hotels
Convention business continues to have a
■■
Mumbai – India’s financial and
positive impact on ARR, with Berlin, Boston,
entertainment capital – has seen an
Chicago, Frankfurt and San Francisco all
increase in corporate demand, resulting
posting increases in ARR as a result
in a modest increase in ARR. With India
forecast to overtake China this year in
■■
The survey also shows that for the twelfth year running Moscow remains the most expensive city for
Both Chennai and Tokyo have enjoyed an
terms of economic growth, Mumbai along
increase in corporate demand resulting in
with India’s key cities will be ones to watch
rises of 20.9% and 7% respectively
this year and next
business travel, with a 6.07% increase (GBP) in ARR compared to last year. The findings from the
latest HRG Interim Hotel Survey also reported that 31 of the top cities experienced an increase in
ARR with only 15 cities falling and five remaining static.
“Flexibility is going
to remain a key
differentiator for
hotel programmes
moving forward.”
■■
Oversupply remains an issue on ARR in Abu
■■
Influencers on changes in ARR continue
Dhabi, Dubai (although to a lesser degree
to include oversupply, exchange rate
as the city is readying itself for Expo 2020)
movements, economic and political
and Rome
sanctions
The HRG View: Margaret Bowler, Director Global Hotel Relations
“Our interim hotel survey is a real barometer for economic growth. We have booked more
hotel room nights than last year, illustrating an increase in the number of corporates
travelling to do business. It’s been an interesting half year for the hotel business.”
“Markets globally are becoming even more fragmented and accommodating not only the
ongoing stature of the mega city in the face of the diminishing importance of the region, but
also different city trends within the same city. This in-city fragmentation is well illustrated
if we look at New York. The Times Square area is seeing a lot of new bed stock which has
resulted in a stagnation of ARR whereas in other parts of the city, we continue to see
Key findings
■■
ARR rising. Clearly this can benefit the corporate client who has flexibility to enable their
With 12 years in the top spot, Moscow has
benefitted from a modest growth in GBP
translating into a huge growth locally, due
■■
■■
This is again witnessed by the regional
charts from the survey with only the
Americas showing ARR growth (9.89%).
to extreme movements in the exchange rate
MEWA has seen a dramatic decrease with
Mega cities continue to dominate; cities
only by the ongoing mega city trend but
within a region continue to see a large
disparity in terms of ARR movement,
showing once again that regional
ARR down by 19.47%. This is caused not
also by more supply in key cities together
with a stalling of key feeder markets such
travellers to book in these city areas and benefit from the lower room rates.”
“Flexibility is going to remain a key differentiator for hotel programmes moving forward. Not
only in terms of being able to benefit from in-city fragmentation as detailed previously but
also in terms of the increase in new bed stock in defined tiers - budget/mid-market limited
service, mid-market full service etc. This gives the client greater, wider and deeper choice.
With new brands and concepts appearing almost daily, we are seeing many legacy hotel
chains fighting for the traditional mid-market.”
as Russia
performance is diminishing compared to
mega city performance
© Hogg Robinson Group 2015
“The flexible and canny client can really maximise the results of the interim hotel survey to
realise even greater savings on their hotel programmes.”
hrgworldwide.com
5
HRG Interim Hotel Survey
January –­ June 2015
7
Survey Results
Top 50 Cities
Ranking Ranking
City
2015
2014
Jan-Jun
2015
ARR GBP
Jan-Jun
2014
ARR GBP
GBP ARR
% Var
Jan-Jun
2015 ARR Local
Jan-Jun
2014 ARR Local
Local
ARR
% Var
Exchange
Rate
% Var
1
1
Moscow
£266.22
£250.98
6.07%
RUR 23,382.00
RUR 14,646.19
59.65%
50.51%
2
5
New York City
£222.79
£206.11
8.09%
USD 339.38
USD 343.94
-1.33%
-8.71%
3
8
San Francisco
£222.09
£189.99
16.90%
USD 338.31
USD 317.04
6.71%
-8.71%
4
3
Geneva
£197.65
£209.95
-5.86%
CHF 285.07
CHF 312.07
-8.65%
-2.97%
5
6
Zurich
£196.86
£201.71
-2.40%
CHF 283.93
CHF 299.82
-5.30%
-2.97%
6
9
Hong Kong
£193.71
£187.04
3.57%
HKD 2,287.85
HKD 2,420.62
-5.48%
-8.74%
7
2
Lagos
£186.43
£220.46
-15.44%
NGN 55,474.30
NGN 59,307.27
-6.46%
10.61%
8
14
Sydney
£179.57
£166.36
7.94%
AUD 349.55
AUD 303.57
15.15%
6.67%
9
4
Paris
£177.31
£207.69
-14.63%
EUR 241.90
EUR 252.78
-4.30%
12.09%
10
7
Rio De Janeiro
£177.00
£201.61
-12.21%
BRL 799.16
BRL 770.84
3.67%
18.09%
11
11
Washington
£176.20
£178.77
-1.44%
USD 268.41
USD 298.31 -10.03%
-8.71%
12
17
Tokyo
£171.64
£160.41
7.00%
JPY 31,442.73
JPY 27,428.51
14.64%
7.13%
13
26
Miami
£170.35
£146.92
15.95%
USD 259.49
USD 245.17
5.84%
-8.71%
14
15
Basel
£169.60
£166.06
2.13%
CHF 244.61
CHF 246.83
-0.90%
-2.97%
15
12
London
£169.12
£168.84
0.17%
GBP 169.12
GBP 168.84
0.17%
0.00%
16
18
Dubai
£165.04
£159.75
3.31%
AED 952.56
AED 978.92
-2.69%
-5.81%
17
25
Seoul
£163.73
£152.67
7.24% KRW 273,856.44 KRW 266,804.57
2.64%
-4.29%
18
13
Singapore
£163.69
£167.94
-2.53%
SGD 336.35
SGD 353.16
-4.76%
-2.29%
19
10
Stockholm
£155.60
£180.23
-13.67%
SEK 1,982.90
SEK 1,964.11
0.96%
16.94%
20
20
Copenhagen
£151.57
£156.52
-3.16%
DKK 1,541.42
DKK 1,421.59
8.43%
11.97%
21
16
Oslo
£150.51
£161.89
-7.03%
NOK 1,774.95
NOK 1,630.62
8.85%
17.08%
22
24
Frankfurt
£150.26
£152.73
-1.62%
EUR 205.00
EUR 185.89
10.28%
12.09%
23
21
Sao Paulo
£150.22
£155.49
-3.39%
BRL 678.24
BRL 594.50
14.09%
18.09%
24
32
Houston
£145.85
£142.66
2.24%
USD 222.17
USD 238.06
-6.67%
-8.71%
25
30
Nairobi
£145.33
£144.34
0.69%
KES 20,415.38
KES 20,586.93
-0.83%
-1.51%
© Hogg Robinson Group 2015
Ranking Ranking
City
2015
2014
Jan-Jun
2015
ARR GBP
Jan-Jun
2014
ARR GBP
GBP ARR
% Var
Jan-Jun
2015 ARR Local
Jan-Jun
2014 ARR Local
Local
ARR
% Var
Exchange
Rate
% Var
26
22
Milan
£144.93
£153.87
-5.81%
EUR 197.73
EUR 187.28
5.58%
12.09%
27
39
Shanghai
£137.36
£125.99
9.02%
CNY 1,278.99
CNY 1,290.83
-0.92%
-9.12%
28
35
Beijing
£137.18
£132.65
3.42%
CNY 1,277.31
CNY 1,359.07
-6.02%
-9.12%
29
23
Amsterdam
£135.03
£153.62
-12.10%
EUR 184.22
EUR 186.97
-1.47%
12.09%
30
36
New Delhi
£134.72
£127.34
5.80%
INR 12,878.65
INR 12,878.53
0.00%
-5.48%
31
27
Athens
£131.33
£145.18
-9.54%
EUR 179.17
EUR 176.70
1.40%
12.09%
32
28
Brussels
£131.11
£144.85
-9.49%
EUR 178.87
EUR 176.30
1.46%
12.09%
33
43
Philadelphia
£130.07
£119.92
8.46%
USD 198.14
USD 200.11
-0.99%
-8.71%
34
38
Toronto
£129.60
£127.00
2.05%
CAD 243.57
CAD 232.32
4.84%
2.74%
35
31
Barcelona
£125.74
£143.05
-12.10%
EUR 171.55
EUR 174.11
-1.47%
12.09%
36
34
Istanbul
£124.08
£138.05
-10.12%
TRL 484.23
TRL 497.86
-2.74%
8.21%
37
29
Aberdeen
£123.39
£144.35
-14.52%
GBP 123.39
GBP 144.35 -14.52%
0.00%
38
47
Mumbai
£123.23
£111.56
10.46%
INR 11,780.26
INR 11,282.62
4.41%
-5.48%
39
44
Cape Town
£122.07
£119.31
2.31%
SAR 2,213.85
SAR 2,127.05
4.08%
1.73%
40
19
Rome
£120.88
£158.95
-23.95%
EUR 164.92
EUR 193.46 -14.75%
12.09%
41
41
Johannesburg
£120.71
£122.14
-1.17%
SAR 2,189.18
SAR 2,177.50
0.54%
1.73%
42
33
Dusseldorf
£120.33
£138.63
-13.20%
EUR 164.17
EUR 168.73
-2.70%
12.09%
43
42
Abu Dhabi
£117.82
£120.90
-2.55%
AED 680.02
AED 740.85
-8.21%
-5.81%
44
48
Pittsburgh
£117.01
£104.88
11.57%
USD 178.24
USD 175.01
1.84%
-8.71%
45
37
Hamburg
£114.67
£127.32
-9.94%
EUR 156.44
EUR 154.96
0.96%
12.09%
46
40
Munich
£114.05
£122.38
-6.81%
EUR 155.60
EUR 148.95
4.46%
12.09%
47
45
Berlin
£111.97
£117.39
-4.62%
EUR 152.76
EUR 142.88
6.92%
12.09%
48
46
Madrid
£109.34
£113.05
-3.28%
EUR 149.17
EUR 137.59
8.42%
12.09%
49
50
Chennai
£101.06
£83.59
20.90%
INR 9,660.90
INR 8,453.87
14.28%
-5.48%
50
49
Bangalore
£99.15
£99.35
-0.20%
INR 9,478.31
INR 10,047.76
-5.67%
-5.48%
hrgworldwide.com
HRG Interim Hotel Survey
January –­ June 2015
The top 5 biggest rate increases
City
MOSCOW
SYDNEY
TOKYO
CHENNAI
SAO PAULO
Jan-Jun
2015 ARR Local
The top 5 biggest rate decreases
Jan-Jun
2014 ARR Local
Local ARR
% Var
Exchange Rate
% Var
RUR 23,382.00
RUR 14,646.19
59.65%
50.51%
AUD 349.55
AUD 303.57
15.15%
6.67%
JPY 31,442.73
JPY 27,428.51
14.64%
7.13%
INR 9,660.90
INR 8,453.87
14.28%
-5.48%
BRL 678.24
BRL 594.50
14.09%
18.09%
Moscow stubbornly refuses to relinquish its top
Chennai has seen robust growth in average
spot, now into its 12th year. A modest growth
rate, even with an exchange rate working
in GBP has been translated into a huge growth
against it. After several tough years, corporate
locally due to the significant movement seen in
demand is returning, which combined with no
exchange rate.
significant new hotel openings recently has lead
City
Jan-Jun
2015 ARR Local
Jan-Jun
2014 ARR Local
Local ARR
% Var
Exchange Rate
% Var
ROME
EUR 164.92
EUR 193.46
-14.75%
12.09%
ABERDEEN
GBP 123.39
GBP 144.35
-14.52%
0.00%
GENEVA
CHF 285.07
CHF 312.07
-8.65%
-2.97%
ABU DHABI
AED 680.02
AED 740.85
-8.21%
-5.81%
HOUSTON
USD 222.17
USD 238.06
-6.67%
-8.71%
Rome continues to see the effect of new
Geneva is facing a challenge with the removal
bedrooms opening on top of a weak economy
of the Swiss Franc cap which in turn is making
which means falling demand and increased
travel more expensive and so demand is slowing
supply has resulted in significant drop in
resulting in a modest fall in average rate,
ARR locally.
intensified by exchange rate movements.
to the rate growth seen.
Sydney benefitted from increased demand
across the peak summer season which, coupled
with the world cup cricket, major sporting
events and concerts often saw city hotels fully
sold out - pushing up average rates.
Aberdeen is now feeling the full effects of
Abu Dhabi is also feeling the effects of
Sao Paulo’s rate raise locally has been driven
the slowdown in the oil industry and demand
oversupply pulling down the average room rate.
by a large exchange rate movement. In GBP
significantly less with too many hotel rooms to
there is a modest decrease as the city feels the
fill. For the first time in many years hotels are
Houston like Aberdeen is experiencing the
effects of oversupply following the world cup.
having to discount rates to maintain demand
effects of the turn down in the oil industry with
and this is being reflected in the city’s average
hotels having to discount rates to maintain
room rate and in hotel negotiations
demand. However a small increase in GBP
for 2015/16.
was offset by the backwards movement in
Tokyo saw a modest 7% rise in GBP mirrored by
a 7%+ movement in exchange rate resulting in
a 14.6% rise locally driven by ever increasing
corporate demand.
exchange rate.
Moscow stubbornly
refuses to relinquish
its top spot, now into
its 12th year.
© Hogg Robinson Group 2015
hrgworldwide.com
9
HRG Interim Hotel Survey
January –­ June 2015 11
The Regions
Chicago has seen a city wide upsurge in convention business. This has enabled hotels to drive rates
up, resulting in an increase in ARR.
The America’s is the only region to have seen growth during this period,
as it was last year as well. Once again cities within each region continue to
see a large disparity in terms of ARR movement, further evidence
that ‘regional’ performance is becoming less dominant compared to
mega city performance.
openings again led to a robust growth in average rate.
Vancouver has seen a record first half year driven by high demand from all sectors which along with
no new openings has seen prices rise substantially.
Montreal saw a marginal decline in supply along with extra demand from the FIFA women’s world cup
drive a modest increase in average rate.
North America
City
San Francisco continues to be a strong destination for conventions and corporates - no new
Europe
ARR Local 15
ARR Local 14
Local Var
Exc Rate Var
NEW YORK CITY
USD 339.38
USD 343.94
-1.33%
-8.71%
WASHINGTON DC
USD 268.41
USD 298.31
-10.03%
-8.71%
HOUSTON
USD 222.17
USD 238.06
-6.67%
-8.71%
BOSTON
USD 319.01
USD 297.60
7.20%
-8.71%
CHICAGO
USD 263.55
USD 223.46
17.94%
-8.71%
SAN FRANCISCO
USD 338.31
USD 317.04
6.71%
-8.71%
PHILADELPHIA
USD 198.14
USD 200.11
-0.99%
-8.71%
LOS ANGELES
USD 269.09
USD 271.61
-0.93%
-8.71%
VANCOUVER
CAD 210.25
CAD 189.39
11.02%
2.74%
TORONTO
CAD 243.57
CAD 232.32
4.84%
2.74%
OTTAWA
CAD 185.76
CAD 173.53
7.05%
2.74%
MONTREAL
CAD 207.79
CAD 198.52
4.67%
2.74%
New York City saw good growth in average rate in GBP. It will be interesting to see if the new product
makes an impact on ARR as we move into the second half of the year.
Following a year full of convention business in 2014, Washington DC saw a modest decline in GBP
ARR during the period with less convention business to push up rates. However government business
is filling the majority of the gap, and the decline in GBP was bought into sharper focus locally due to
the movement in exchange rate.
City
MOSCOW
ARR Local 15
ARR Local 14
Local Var
Exc Rate Var
RUR 23,382.00
RUR 14,646.19
59.65%
50.51%
HAMBURG
EUR 156.44
EUR 154.96
0.96%
12.09%
GENEVA
CHF 285.07
CHF 312.07
-8.65%
-2.97%
BARCELONA
EUR 171.55
EUR 174.11
-1.47%
12.09%
FRANKFURT
EUR 205.00
EUR 185.89
10.28%
12.09%
PARIS
EUR 241.90
EUR 252.78
-4.30%
12.09%
BRUSSELS
EUR 178.87
EUR 176.30
1.46%
12.09%
DUBLIN
EUR 132.83
EUR 123.50
7.55%
12.09%
VIENNA
EUR 161.83
EUR 157.35
2.85%
12.09%
ATEHNS
EUR 179.17
EUR 176.70
1.40%
12.09%
MADRID
EUR 149.17
EUR 137.59
8.42%
12.09%
BERLIN
EUR 152.76
EUR 142.88
6.92%
12.09%
Moscow continues to be the most expensive city for business travel, and with the sanction regime
against it, the city saw a large increase in rate driven mainly by variation in the exchange rate.
Frankfurt is now into its busy convention and fair season with this year seeing the return of some big
events that take place every two years; demand outstrips supply during these events pushing rates up.
Paris has seen new bedrooms opening and a slightly weaker convention season helping to drive the
Houston like Aberdeen is feeling the effects of the turn down in the oil industry with hotels having to
discount rate to maintain demand. A small increase in GBP was offset by the backwards movement in
the exchange rate.
modest fall in average room rate.
Dublin has seen compression in the market even with many refurbishments back on line driven by the
economy getting back on track.
Boston has seen a strong first half with a busy graduation season coinciding with city wide
convention business. This together with new international flights into Logan, supply has struggled to
cope with demand and so there has been high growth in ARR.
© Hogg Robinson Group 2015
Madrid is experiencing the economy coming back from a low base with the upscale hotels seeing
more demand driven by local business.
hrgworldwide.com
HRG Interim Hotel Survey
January –­ June 2015 13
Berlin continues to see a lack of supply coupled with high demand driven by a good convention
Bangalore was more or less flat as new bed stock fills, the local drop being driven entirely by
season as more large events move here from higher priced cities in Germany.
exchange rate movements.
Geneva saw a modest fall in average rate caused by corporate clients down trading into mid-market
Mumbai is India’s financial and entertainment capital and has seen modest average rate growth even
hotels, this was exacerbated by the exchange rate movement.
with the exchange rate working against it. As corporate demand builds all the new bed stock of the
last few years is finally starting to fill, and with India forecast to overtake China this year in terms of
economic growth, all the key Indian cities will be ones to watch throughout the remainder of this year
Asia Pacific
City
and into 2016.
ARR Local 15
ARR Local 14
Local Var
Exc Rate Var
HONG KONG
HKD 2,287.85
HKD 2,420.62
-5.48%
-8.74%
SINGAPORE
SGD 336.35
SGD 353.16
-4.76%
-2.29%
TOKYO
JPY 31,442.73
JPY 27,428.51
14.64%
7.13%
NEW DELHI
INR 12,878.65
INR 12,878.53
0.00%
-5.48%
MUMBAI
INR 11,780.26
INR 11,282.62
4.41%
-5.48%
BANGALORE
INR 9,478.31
INR 10,047.76
-5.67%
-5.48%
HYDERABAD
INR 8,714.66
INR 8,616.70
1.14%
-5.48%
BEIJING
CNY 1,277.31
CNY 1,359.07
-6.02%
-9.12%
SHANGHAI
CNY 1,278.99
CNY 1,290.83
-0.92%
-9.12%
AUD 349.55
AUD 303.57
15.15%
6.67%
SYDNEY
Sydney benefitted from increased leisure demand across their peak summer season coupled with
the world cup cricket and other major sporting events and concerts that often saw the city full, so
pushing up ARR.
Beijing saw a modest increase in rate in GBP but again this was reversed due to exchange rate
movements locally.
Shanghai like Beijing saw a good growth in rate in GBP due to increased corporate demand from
both international and domestic markets, but again this was reversed due to exchange rate
movements locally.
Middle East, West Africa
City
ARR Local 13
ARR Local 14
Local Var
Exc Rate Var
DUBAI
AED 952.56
AED 978.92
-2.69%
-5.81%
ABU DHABI
AED 680.02
AED 740.85
-8.21%
-5.81%
MANAMA
BHD 96.27
BHD 102.43
-6.01%
-8.66%
ISTANBUL
TRL 484.23
TRL 497.86
-2.74%
8.21%
CAIRO
EGP 1,442.62
EGP 1,131.72
27.47%
-1.55%
DOHA
QAR 989.86
QAR 967.43
2.32%
-8.62%
Tokyo saw a modest 7% rise in GBP couple with a 7%+ movement in exchange rate resulting in a
14.6% rise locally driven by ever increasing corporate demand.
Dubai has seen a small fall in average rate as more supply comes online in readiness for the world
expo in 2020. In addition the traditional role for the city as a hub in the region is lessening as
travellers now ideally travel point to point direct to their final destination.
Abu Dhabi is experiencing the effects of oversupply pulling down ARR.
Manama has seen government intervention in the hotel industry with rates being set at a national
level and hotels having no or little room to negotiate.
Cairo has seen rates rise albeit from a very low base last year as the city recovers from the political
turmoil and as business demand grows.
© Hogg Robinson Group 2015
hrgworldwide.com
HRG Interim Hotel Survey
January –­ June 2015 15
The UK
City
ARR GBP 15
ARR GBP 14
GBP Variance
LONDON
GBP 169.12
GBP 168.84
0.17%
ABERDEEN
GBP 123.39
GBP 144.35
-14.52%
HEATHROW
GBP 99.45
GBP 93.96
5.84%
MANCHESTER
GBP 99.00
GBP 92.03
7.57%
NEWCASTLE
GBP 89.44
GBP 89.38
0.07%
EDINBURGH
GBP 89.83
GBP 91.04
-1.33%
GLASGOW
GBP 91.47
GBP 88.25
3.65%
BELFAST
GBP 92.65
GBP 90.68
2.17%
LIVERPOOL
GBP 87.36
GBP 84.36
3.56%
CARDIFF
GBP 78.50
GBP 78.97
-0.60%
“The flexible and canny
client can really maximise
the results of the interim
hotel survey to realise even
greater savings on their hotel
programmes.”
Aberdeen is now feeling the full effects of the slowdown in the oil industry – demand has dropped
while supply remains at high levels. For the first time in many years hotels are having to significantly
discount rates to maintain demand. This is being reflected in the city’s average room rate and in hotel
negotiations for 2015/16.
London on the face of it remains fairly flat for the first six months. However, when looking in more
detail we can see that the high end properties have taken a larger decrease in ARR, as the budget
and mid-market hotels see modest increase in their average rates.
Manchester has seen a combination of growing corporate demand and few new rooms opening which
has helped drive a modest growth in average rate across the city.
London by region
Hammersmith
& Kensington
£164
–0.7%
West End
& Central
£180
+0.7%
City
£182
–0.4%
Docklands
£167
+1%
© Hogg Robinson Group 2015
hrgworldwide.com
HRG Interim Hotel Survey
January –­ June 2015 17
About the HRG Interim
Hotel Survey
Now in its 22nd year, HRG’s biannual hotel
survey looks at hotel room rates for key business
destinations across the world to provide a dynamic
insight into global business travel behaviours.
For more information please contact:
Margaret Bowler
E [email protected]
T +44 (0)1252 881000
© Hogg Robinson Group 2015
hrgworldwide.com
hrgworldwide.com