Hotel rates in Asia have risen steadily in 2013, driven by markets in India and Japan, according to a new report by Hogg Robinson Group (HRG).
The travel management company’s latest interim Hotel Survey shows that average daily rates (ADR) have increased approximately 1% in Asia’s key cities this year, compared with 2012. But this hides some large swings in individual markets.
The region’s growth was led by Tokyo, where ADR has increased 19% in local currency terms, to JPY26,514 (approx. US$272), while in the Indian cities of Mumbai and Bengaluru both saw growth of 9%, to INR12,395 and INR10,294 (approx. US$194 and US$161) respectively. Both the Japanese and Indian growth rates were helped by favourable exchange rates, when measured against the British pound (GBP), according to HRG.
“The early sign of recovery in hotel prices is encouraging, what is a surprise however is that in certain key cities the rates are not as high as the market had expected – in many cities this is attributed to new supply. On the whole occupancy is increasing faster which, coupled with continued high demand, means we will be likely to see rates climbing in certain markets in the second half of the year and beyond,” said Margaret Bowler, director of global hotel relations at HRG.
Other key Asian cities experienced steady ADR growth, including Beijing (+3% to CNY1,346, or approx. US$218), Delhi (+3% to INR11,681) and Sydney (+1% to AU$307, or approx. US$279). Singapore’s ADR remained almost unchanged at SG$337, or approx. US$264) but Shanghai (-3% to CNY1,278) and Hong Kong (-3% to HK$2,332, or approx. US$301) both declined.
Despite the apparent stagnation of ADR, HRG noted that both Hong Kong (11th) and Singapore (14th) remain in the top 20 most expensive global cities. When measured in consistent GBP terms, Moscow retained its place as the world’s most expensive city for hotels, ahead of Lagos, New York, Zurich and Geneva. At ninth in the global list, Sydney is the most expensive Asia Pacific city.
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