GRI Reveals Figures of Global Hotel Performance in 2005

For the third consecutive year Italy´s Venice held on to its crown as the best performing market in terms of revenue per available room (revPAR), according to the Hotel Benchmark Global Ranking Index (GRI). The GRI compares the performance of 165 global cities outside North America on an annual basis.

Europe´s dominance of the ranking remained strong during 2005, securing 11 of the top 20 positions in the revPAR GRI. Despite three European cities dropping out of the top 20 –Athens, Edinburgh and Dublin. Istanbul was a new entry securing 20th place, as revPAR in the city grew 43 percent in 2005, fueled by a substantial increase in visitors and the city hosting the Formula 1 Motor Racing Championship for the first time.

The Asia Pacific region stole six places in the top 20 revPAR GRI. Of these, Taipei made a comeback in 16th place, after dropping out of the rankings in 2003, while Hong Kong SAR remained the only Chinese market in the top 20 in 10th place.

Markets in the Middle East claimed the remaining three top 20 positions, with Doha making a spectacular appearance in 6th place. Doha has experienced phenomenal growth in average room rates, up 65.7 percent to $199 since 2004. This growth has attributed to the city moving up an impressive 64 places in just five years. Dubai climbed eight places, securing second position behind Venice, while Kuwait City dropped to 12th place.

Interestingly, when looking at the top 20 markets in terms of occupancy, the Global Ranking Index paints a completely different picture, with only seven markets appearing in the top 20 for both revPAR and occupancy. Abu Dhabi took the coveted top spot in the occupancy GRI –overtaking Dubai- however its performance is something of an anomaly because new supply is excluded from the analysis.

Asia Pacific markets dominated the occupancy GRI once again, taking 13 spots. Hanoi made its debut entry, securing 3rd place. Since 2000 Hanoi has seen occupancy rates grow 117 percent. Although this growth comes from a low base, it is still a remarkable accomplishment, achieved through improving service quality and effective tourism campaigns.