Hotels in the Asia Pacific region experienced a 2.3% drop in revPAR (revenue per available room) in the first half of 2014.
According to the latest data from STR Global, the region’s occupancy climbed 0.9% during the six-month period, to 66.9%. But this was offset by a 3.1% decline in average daily rates (ADR), which fell to US$118.03, compared to US$121.82 in the same period last year.
Elizabeth Winkle, managing director of STR Global, explained that the decline was partially due to the instability in Thailand, which impacted Southeast Asia’s occupancy levels.
“The only region to report declines in occupancy year-to-date is Southeastern Asia (-4.7%), primarily driven by Thailand,” she said.
“Asia Pacific is such a diverse region that there is a lot occurring from a political and/or economic perspective. While growth is muted, the region is still reporting increases in the three key performance industry metrics for the first six months of the year, when measured in US dollars in constant currency.”
But all sub-regions contributed to the declining rates in the first half of the year (in US dollar terms), with Central & South Asia – led by India – experiencing an 8.9% slump in ADR over the six-month period, and Australasia seeing a 5.4% decline. Northeast Asia’s ADR dipped 1.3%.
For June itself, Asia Pacific’s revPAR fell 0.9%, following a 1.4% drop in occupancy and a 0.5% increase in ADR. Three markets achieved revPAR growth of more than 10% however: Auckland (+37.6% to US$92.52), Shanghai (+15.5% to US$75.25) and Osaka (+11.2% to US$96.09).
Bangkok (-39.3% to US$42.69) and Phuket (-20.8% to US$44.52) experienced the most significant revPAR declines in June, demonstrating Thailand’s continued problems.
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