Hoteliers in the Middle East secured the highest revPAR for the first four months of 2007 at US$ 114 – fuelled by increases in average room rates, up US$ 15 over the same period in 2006. However, in contrast to last year, hoteliers have also managed to push up occupancy levels by 2.5% to reach 73% – after battling the effects of continuing terrorism threats and increases in hotel supply. Muscat leads the way in terms of revPAR growth up 56.3% for the first four months of 2007 driven by a combination of occupancy growth and a 45.9% increase in average room rates. The strong performance has been boosted by the closure of two key hotels for extensive refurbishment, in advance of the Gulf Cooperation Council (GCC) Heads of State Conference at the end of 2007.

The good news continues for hoteliers in Central and South America with revPAR up US$ 11 to US$ 80 driven again, by improvements in average room rates which now stand at US$ 111. Despite moving 13.2% compared to the same period last year, the average room rate in the region remains the lowest of any region. Sao Paulo, the main financial centre of Brazil, with excellent conference and exhibition facilities is a magnet for MICE tourism. As a result the city has seen a 7.9% increase in occupancy for the first four months of this year going over 60%.

Asia Pacific mirrors other regions with average room rates driving hotel performance. For the first four months of 2007, average room rates have risen 11.9% to US$ 134. Average room rates in Hong Kong (China) continued to climb, up 10.4% for the first four months of 2007 to US$ 207. The city can proudly claim the third highest average room rates in Asia Pacific, following Mumbai and Tokyo at US$ 246 and US$ 231 respectively.

After doubling the rate of growth seen last year compared to 2005 – with revPAR up 11.4% - Europe continues on an upward trend with revPAR up 18.1% to US$ 93. The majority of cities in Europe are experiencing positive revPAR growth with Moscow and Istanbul coming out top for the first four months of 2007. Three major sporting events are expected impact hotel performance in Europe this year – the Rugby World Cup in France, the Tour de France – which begins in London for the first time ever – and the America’s Cup in Valencia, Spain.

The outlook for the hotel market for the remainder of 2007 continues to look good, although we expect the rate of growth to slow compared to last year. A general slow down in tourism will mirror the outlook for world economies, especially those in the USA, Japan and Europe. On the one hand, increasing interest rates in some countries combined with high levels of personal debt in many Western countries, are bound to impact the amount of disposable income, and therefore the amount of money that can be spent on travel. However, on the other hand, countries – both established favourites and newcomers – continue to invest in high profile, attention-grabbing global campaigns, encouraging people to bring out their suitcases, again.