Istanbul's designation as one of Europe's Capitals of Culture during 2010 has given an additional promotional boost to the city's remarkably strong hotel market where several new properties are opening soon. Data from STR Global, the leading provider of market information to the world's hotel industry, shows growth in average daily rate (ADR) during the past five years has trended upwards and maintained resilience even during the recent economic crisis.
As the chart below indicates, hotel occupancy has remained relatively steady at approximately 70 percent since 2005-a marked improvement from 2009's low of 65.3 percent. ADR growth in Turkish Lira terms has proved more pronounced as demand has grown particularly from the Middle East. The ADR for the first seven months of 2010 averaged TRY298.65, a modest improvement from the average of TRY296.69 for the seven months to July 2009. Since 2005, when the average for the same period was TRY169.63, every year has shown an increase in ADR. In USD and Euro terms, the ADR increases have not been so dramatic given the depreciation of the Turkish Lira by 13.3 percent and 20.3 percent, respectively, during the period from 2005 to 2010.
Istanbul 12-months moving average 2005 to July 2010 (TRY)
Source: STR Global
These local market conditions have continued to attract new entrants to Istanbul. "The STR Global Pipeline reports indicate that some 2,270 rooms are currently under construction, in final planning and planning stages of development", said Elizabeth Randall, managing director of STR Global. "This represents 7.4 percent of the current room stock in the city". The 14 new hotels include Holiday Inn Express, Crowne Plaza, Hilton Garden Inn, Edition, Doubletree, Radisson Blu and Shangri-La.
About STR Global:
STR Global provides clients-including hotel operators, developers, financiers, analysts and suppliers to the hotel 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, forecasts, annual profitability, pipeline and census information. STR Global is part of the STR family of companies and is proudly associated with STR, RRC Associates, STR Analytics, and HotelNewsNow.com. For more information, please visit www.strglobal.com.