Asia Pacific hotel performance for July 2016
Hotels in the Asia Pacific region recorded mostly positive results in the three key performance metrics when reported in U.S. dollar constant currency, according to July 2016 data from STR.
Compared with July 2015, the Asia Pacific region reported a 2.8 per cent increase in occupancy to 72.1 per cent. Average daily rate (ADR) was nearly flat (-0.3 per cent to US$96.62), while revenue per available room (RevPAR) grew 2.4 per cent to US$69.68.
Performance of featured countries for July 2016 (local currency, year-over-year comparisons):
India recorded positive performance figures across the three key performance metrics: occupancy (+6.4 per cent to 61.9 per cent), ADR (+3.0 per cent to INR5,068.31) and RevPAR (+9.6 per cent to INR3,139.32). According to the India Ministry of Tourism, International visitors to the country increased 17.1 per cent compared with July 2015. Bangladesh, the United States and the United Kingdom represented the top three feeder markets.
Singapore reported mostly flat performance in the three metrics: occupancy (+0.4 per cent to 87.8 per cent), ADR (-1.0 per cent to SGD276.97) and RevPAR (-0.6 per cent to SGD243.16). July events in the country included Singapore International Water Week (10-14 July) and the World Cities Summit (10-14 July). A 4.3 per cent rise in supply placed pressure on ADR, according to STR analysts. The Upper Midscale class posted the highest supply increase (+8.6 per cent).
South Korea saw significant increases in occupancy (+41.6% to 76.1 per cent) and RevPAR (+38.1 per cent to KRW126,633.06). ADR in the country was down 2.4 per cent to KRW166,423.59. The performance was mainly due to a low comparison base with July 2015 when the country’s hotel industry was negatively affected by the Middle East respiratory syndrome outbreak. In addition, the 76.1 per cent absolute occupancy level marked South Korea’s highest July occupancy figure since 2013. Year to date in 2016, South Korea’s occupancy is up 11.0 per cent compared with the first seven months of 2015, while ADR is down 4.9 per cent for the same time period.
Vietnam posted growth in each of the three metrics. Occupancy in the country rose 6.7 per cent to 69.9 per cent; ADR was up 5.1 per cent to VND2,830.430.06; and RevPAR increased 12.1 per cent to VND1,979,639.52. July hotel performance received a boost from a 41.2 per cent increase in international arrivals, as reported by the Vietnam National Administration of Tourism. STR analysts note that Vietnam’s economic growth will likely continue to drive hotel demand, especially in Ho Chi Minh City and Hanoi.
Performance of featured markets for July 2016 (local currency, year-over-year comparisons):
Bangkok, Thailand, reported increases in each of the three metrics: occupancy (+4.7 per cent to 81.1 per cent), ADR (+4.3 per cent to THB3,264.95) and RevPAR (+9.2 per cent to THB2,648.47). The market reported relatively low supply growth (+0.8 per cent), and demand received a lift from the 16-20 July holiday period.
Jakarta, Indonesia, saw increases in occupancy (+9.1 per cent to 50.9 per cent) and RevPAR (+5.5 per cent to IDR553,474.11). The market’s ADR fell 3.3 per cent to IDR1,088,114.35. Performance increases were strong due a Ramadan calendar shift and a low comparison base from July 2015.
Osaka, Japan, reported a 1.0 per cent decline in occupancy to 91.9 per cent, but a 4.9 per cent rise in ADR to JPY17,141.11 boosted RevPAR 3.9 per cent to JPY15,744.56. Despite the year-over-year decline in occupancy, the market maintains high absolute occupancy levels with 23 nights above 90 per cent in July.
Shanghai, China, posted increases across the key metrics. Occupancy rose 4.3 per cent to 80.5 per cent; ADR was up 1.2 per cent to CNY592.96; and RevPAR increased 5.6 per cent to CNY477.04. The occupancy level was the highest in the market since November 2014 with occupancy increases in both the Transient (+5.0 per cent) and Group (+5.9 per cent) segments.