Hotels in Myanmar are suffering from low occupancy and declining rates, as an influx of new room supply impacts the country.
According to the latest data from STR, Myanmar’s nationwide occupancy did climb 5.5% in the second quarter of 2016, bit still only averaged 37.5%.
As a result of this, hoteliers dropped their rates in an effort to improve market share, which led to the country’s average daily rate (ADR) declining 12.6% to MMK142,846 (approx. US$118), and revenue per available room (revPAR) falling 7.8% to MMK53,619.
Hotel rates in Myanmar have surged in recent years, as the country opened its borders to international tourists. But room supply is now swelling (+5.8% in the first half of 2016), leading to a softening of occupancy and rates. Demand for hotel rooms in Myanmar increased just 0.8% in the same period.
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