Asia Pacific hotel performance for August 2016
Hotels in the Asia Pacific region reported mixed results in the three key performance metrics when reported in U.S. dollar constant currency, according to August 2016 data from STR.
Compared with August 2015, the Asia Pacific region reported a 1.2 per cent increase in occupancy to 73.3 per cent. However, average daily rate (ADR) dropped 2.0 per cent to US$98.38, and revenue per available room (RevPAR) dipped 0.8 per cent to US$72.11.
Performance of featured countries for August 2016 (local currency, year-over-year comparisons)
Japan reported mostly negative results with a 1.8 per cent decrease in occupancy to 85.5 per cent, nearly flat ADR (+0.1 per cent to JPY16,628.87) and a 1.7 per cent decline in RevPAR to JPY14,223.98. Japan has experienced seven consecutive months with year-over-year decreases in occupancy. When looking at individual segments, the Luxury (-4.9 per cent) and Upper Upscale (-3.9 per cent) classes saw the largest occupancy decreases, while Midscale and Economy (+1.1 per cent) reported the only increase.
Malaysia recorded positive results across the three metrics. Occupancy in the country rose 1.1 per cent to 73.2 per cent; ADR increased 5.1 per cent to MYR384.40; and RevPAR grew 6.3 per cent to MYR281.42. The absolute RevPAR figure was the highest in Malaysia since July 2011. According to Tourism Malaysia, the country saw a 3.7 per cent increase in tourist arrivals during the first half of 2016. The boost in tourism is reflected in an 8.2 per cent year-to-date demand increase for Malaysia’s hotel industry.
Thailand posted positive results in each of the three metrics: occupancy (+4.9 per cent to 79.8 per cent), ADR (+2.1 per cent to THB3,351.48) and RevPAR (+7.1 per cent to THB2,673.59). STR analysts note that the bombings in Hua Hin temporarily hurt performance in that market, but overall demand for the country increased 7.1% during the month.
Performance of featured markets for August 2016 (local currency, year-over-year comparisons)
Bali, Indonesia, experienced an 8.1 per cent rise in occupancy to 78.7 per cent. However, a 9.3 per cent drop in ADR to IDR1,627,551.11 dragged RevPAR down 1.9 per cent to IDR1,280,476.30. The Bali Tourism Board reported a 43.9 per cent increase in tourist arrivals to the market through July. Hotel demand in the country is up 14.3 per cent year to date, while supply has grown 3.7 per cent.
Ho Chi Minh City, Vietnam, saw double-digit growth in occupancy (+14.8 per cent to 68.0 per cent) and RevPAR (+20.8 per cent to VND1,720,550.88). ADR in the market was up 5.2 per cent to VND2,528,871.62. Vietnam welcomed an estimated 899,738 international visitors in August (+134.4 per cent year over year), according to the Vietnam National Administration of Tourism. STR analysts note that the market’s performance was dominated by the Luxury and Upper Upscale segment (RevPAR +22.3 per cent).
Delhi-National Capital Region, India, posted growth in each of the three metrics: occupancy (+7.2 per cent to 61.5 per cent), ADR (+1.4 per cent to INR5,376.14) and RevPAR (+8.7 per cent to INR3,304.09). According to the Ministry of Tourism, India posted an 11.8 per cent increase in foreign tourist arrivals in August. Among the top 15 ports of entry in the country, Delhi Airport maintained the largest share of those arrivals (28.4 per cent). The Upscale and Upper Midscal segment reported the month’s top performance (RevPAR +11.7 per cent) in Delhi-NCR.