Hotels in the Asia Pacific region saw slight declines in terms of both occupancy and average rates in October 2012, as the injection of new supply into emerging markets diluted performance.
According to data compiled by STR Global, the Asia Pacific region’s occupancy declined 0.2% year-on-year to 70.9%, while average daily rates (ADR) fell 0.6% to US$136. As a result, regional revenue per available room (revPAR) dropped 0.8% to US$96.
The overall result was influenced by the performance of China, which has seen a huge influx of new room supply impact hoteliers’ ability to boost occupancy levels and room rates. STR Global monitors the performance of 1,900 hotels in China – its second biggest market outside the UK.
“For the month of October, China reported 67% occupancy and US$111 ADR. Both key performance indicators were below the Asia Pacific average of 71% occupancy and US$136 ADR,” said Elizabeth Randall-Winkle, Managing Director of STR Global. “Whilst supply growth has slowed across China to 3.5% for year to October, the room stock continued to increase at a higher rate than the regional 2.9%, which negatively impacted the country’s performance.”
There was good news elsewhere however. In India a strong rise in occupancy (+9.4% to 59.3%) offset the country’s continued rate decline (-1.6% to INR6,585), while Australia saw small growth both in terms of occupancy (+0.4% to 78.1%) and rates (+1.6% to AU$178). In Singapore, occupancy fell slightly (-1.6% to still strong 84.3%), but this was offset by a 2.0% rise in ADR, to SG$249.
Bangkok’s recovery from a flood-hit October 2011 has seen its occupancy levels jump 20.1% year-on-year to 70.2%.
Despite October’s declines, Asia Pacific’s revPAR of US$96 remains comparable to that of Europe (US$99) and ahead of the Americas (US$71). Hotels in the Middle East & Africa continue to command the highest revPAR, at US$121.