Istanbul reports positive ADR, RevPAR
The Istanbul hotel market experienced positive growth in both average daily rate (ADR) and revenue per available room (RevPAR) year-to-September 2011. The trend is encouraging, as new supply has grown by an additional 1,868 daily rooms (+5.9 percent) since 2010, according to STR Global, the leading provider of market data to the hotel industry.
Istanbul became the third-fastest growing tourist destination in the world in terms of visitor number (+30.1 percent) in 2010, according to a MasterCard Worldwide report published in July 2011, surpassing New York and Amsterdam, attracting more tourists from the Middle East (Saudi Arabia, Iran and United Arab Emirates), the U.S. and Europe.
For hoteliers it has meant that hotel performance in 2011 so far was mainly driven by ADR growth (+34.1 percent to TRY364.07) as the global economy as well as new hotel supply might have impaired the occupancy growth (-3.3 percent) year-to-September compared to the previous year. Looking at the impact of the currency exchange between the Turkish Lira and both the Euro and the U.S. dollar, ADR growth in Euro-terms was only 9 percent compared to14 percent in USD.
The future is promising for hotels in the city, as Istanbul capitalises on its modern image as a destination of choice and remains an attractive destination for both business and leisure travellers.
"The flexibility of the Turkish Lira against the other major currencies and the sound economic environment will encourage the hotel market to remain very active in the coming months", said Elizabeth Randall, managing director of STR Global. "Speaking recently with hotel consultants and operators in Istanbul confirmed our observations".
But challenges still remain for Istanbul's hotels. Volatility in the global environment and the expected 9.3-percent increase in room supply, according to the STR Global pipeline, might present challenges for the market. Hoteliers might face more competition in both the high end of the market as well as the economy segment with the proliferation of branded supply.
Konstanze Auernheimer (STR Global)
Director of Marketing
Phone: +44 (0)207 922 1961
About STR Global
STR Global provides clients—including hotel operators, developers, financiers, analysts and suppliers to thehotel industry—access to hotel research with regular and custom reports covering Europe, Middle East, Africa, Asia Pacific and South America. STR Global provides a single source of global hotel data covering daily and monthly performance data, segmentation data, forecasts, annual profitability, pipeline and census information. Hotel operators can join the surveys on a complimentary basis and benefit from free industry data. STR Global is part of the STR family of companies and is proudly associated with STR, STR Analytics and Hotel News Now. For more information, please visit www.strglobal.com.