confirmed ”boost from the Adele Live 2017€¦ · however, Q1 2017 we are seeing a rise in ARR across major cities. Occupancy levels in the key cities around the world range from

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This report is the first in a new series of 4D Focus papers designed to

assist global and national procurement managers understand the market shifts in corporate travel hotel pricing. The global data used is sourced from corporate bookings made offline, online (via OBT), GDS and non-GDS bookings during January to March 2017 (Q1 2017). The average room rates (ARR) quoted are booked rates (excluding taxes). Variations in rates booked are reflection of supply and demand, corporate buying behaviour and rates for sale. Unless otherwise stated USD$ is reported.

Corporate travellers in 2017 have had a slower start to the year in Oceania and Europe due to uncertainty in the economic climate. Demand Management has been used across many corporate travel programs to reduce the number of trips and qualify the business need to travel. Travel into Asia has remained strong resulting in the ARR increase. North America over 2015-2016 have had low ARR rates for corporate travel, however, Q1 2017 we are seeing a rise in ARR across major cities.

Occupancy levels in the key cities around the world range from 0-5+% higher than 2016.North America occupancy is flat in the key 25 cities however rooms rates are up 2.2%

Sydney in March had the highest occupancy levels since 1996 (90.1%). STR analysts confirmed ”boost from the Adele Live 2017 Australian Tour (10-11 March). Occupancy reached 95.2% and 98.1% on the two days, respectively”. Leisure cruise market for pre and post bookings continue to drive up the ARR.

Japan availability levels will decrease as many hotels close inventory and commence refurbishments in preparation for the 2020 Summer Olympics.

Q1 2017 OCCUPANCY *

VAR. ON 2016

AUSTRALIA 79.3.% +2.1%

LONDON 70.6% +2.6%

SPAIN 67.5% +2.3%

USA 60.7% -0.5%

SINGAPORE 85.7% Flat

HONG KONG 86.5% +2.1%

MEXICO 64.7% +1.2%

CHILE 69.2% +7.5%

BRAZIL 50.7% -5.4%

*Sourced from STR

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Annual Analysis

Cities2500+Countries180+

300+

6

Hotel Rating 3-5

Average Nights Away2.1

Multi- Booking Stream

57

4

$USD

North America ARR$150 +9.4%

AmericasARR $103 -6.8%

MEAARR $146 -8.5%

Asia ARR $137 +3.7%

Europe ARR $141 +0.1%

OceaniaARR $128 +4.7%

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Corporate ARR is flat across the region however,

occupancy trended at 63.5% (+4.5% on last year)+0.1%

MUNICH

STOCKHOLM

MILAN

+ 4.4%

+5.1%

+ 4.4.%

LONDON

DUBLIN

FRANCE

+ 9.4%

+ 4.4%

+ 4.4%

$128MUNICH$183

PARIS

$141DUBLIN $196

LONDON

$150MADRID

$123ABERDEEN

$127LIVERPOOL

$172AMSTERDAM

$212MOSCOW

$125ISTANBUL

$110BUCHAREST

$163MILAN

$98KATOWICE

$105BUDAPEST

$204STOCKHOLM

$217OSLO

$USD

- 5.4%

- 2.6%

+ 0.2%

+ 2.4%

+ 1.6%

Local Currency ARRVar. Q1 2017 vs 2016

ROE to USDVar. Q1 2017 on 2016

- 2.1%

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$251TOKYO

$163BEIJING

$144JAKARTA

$143GUANGZHOU

Past QTR ARR have increased, with regional occupancy in Q1

at 68.3% (+3.3% on 2016). Tokyo availability tight with many

hotels refurbishing in preparation for the 2020 Olympics.+3.7%$163

SHANGHAI

$256HONG KONG

$109HANOI

$129MANILA

$124BANGKOK

$160TAIPEI

$189SEOUL

$117BANGALORE

$148MUMBAI $107

CHENNAI

$123DELHI

$198SINGAPORE

$96KUALA

LUMPUR

SINGAPORE

BANGALORE

MANILA

+ 3.3%

+ 0.2%

+ 5.3.%

BEIJING

SHANGHAI

DELHI

+ 4.2%

+ 4.2%

+ 0.5%

- 2.1%

- 0.8%

- 4.0%

+ 3.0%

+ 5.2%

- 10.8%



$USD

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$208SYDNEY

In the past QTR rates have increased due to reduced

availability and strong demand (both leisure & corporate) in

Sydney, Auckland, Melbourne and Wellington.+4.7%

$173MELBOURNE

$164PERTH

$141BRISBANE

$103DARWIN

$137ADELAIDE

$145HOBART

$168CANBERRA

$105HAMILTON

$166AUCKLAND

$118CAIRNS

$143NEWCASTLE

$147WELLINGTON

$136CHRISTCHURCH

PERTH

CHRISTCHURCH

BRISBANE

- 0.4%

- 1.8%

- 0.4%

SYDNEY

AUCKLAND

MELBOURNE

- 0.4%

- 1.8%

- 0.4%

+ 0.4%

+12.2%

- 3.0%

+ 8.7%

+ 9.6%

+ 5.5%



$USD

8

In the past year the region has had slow growth and

demand across key cities. Regional occupancy is 55.3% (-

1.6%) on last year-6.8%

$130BUENOS AIRES

BOGOTA

SANTIAGO

RIO

- 3.6%

- 3.1%

- 9.8%

SAO PAULO

BUENOS AIRES

- 9.8%

+ 6.6%

+ 9.9%

- 6.4%

- 32.1%

- 6.7%

- 1.4%



$111SAO PAULO

$108RIO DE JANEIRO

$174SANTIAGO

$158BOGOTA

$133LIMA

$119ASUNCION

$150MONTEVIDEO

$161QUITO

$USD

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ARR increase which is coming off a low base and year of

uncertainty. USA occupancy in Q1 was 60.7% (+0.5% on 2016).+9.4%

$USD

TORONTO

MEXICO CITY

VANCOUVER

+ 0.4%

+10.8%

+ 0.4%

NEW YORK

BOSTON

CHICAGO

0%

0%

0%

+ 2.2%

+10.8%

+15.0%

+11.3%

- 6.1%

- 4.5%



$220LOS ANGELES

$136VANCOUVER

$165BOSTON

$151TORONTO

$100EDMONTON $148

OTTAWA

$275NEW YORK

$197MEXICO CITY

$156CHICAGO

$193SEATTLE $160

DENVER

$161DALLAS

$165ATLANTA

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$103JOHANNESBURG

During the past year Africa regional rates have shown the

largest reduction globally, whilst the Middle East remains

strong.

-8.5%

$263NAIROBI

$192CAIRO

$77GABORONE

$212RIYADH

$210DUBAI

JOHANNESBURG

GABORONE

- 8.8%

- 3.6%

DUBAI

RIYADH

0%

0%

- 40.0%

- 30.0%

+18.0%

- 8.0%

$186DOHA

DOHA0%- 4.2%



$USD

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More Information about the 4th Dimension Focus

Global Hotel Trends Q1 2017

Felicity Burke E: [email protected] M: +61 407097599

Contact Us : [email protected]

mailto:[email protected]

mailto:[email protected]

Documents

confirmed ”boost from the Adele Live 2017€¦ · however, Q1 2017 we are seeing a rise in ARR across major cities. Occupancy levels in the key cities around the world range from