Hotels in the Asia Pacific region experienced a 2.5% decline in revPAR (revenue per available room) in 2014.
According to the full-year data from STR Global, which was released today, the region’s revPAR slid from US$81.46 in 2013 to US$79.39 last year. This decline was driven by a 3.0% drop in average daily rates (ADR), to US$115.67, which offset a 0.5% increase in occupancy, to 68.6%.
Asia Pacific’s hotel room supply increased 3.8% in 2014, which is the first time since 2008 that it finished a year below +4.0%. Demand growth for the year was 4.3%, in line with recent years.
“As supply and demand growth were practically on par, we have seen only a marginal increase in occupancy of 0.5%,” said Elizabeth Winkle, managing director of STR Global. “For the past three years Asia Pacific has achieved occupancy levels of 68%.”
Looking at the four main regions within Asia Pacific, Central & South Asia posted the highest occupancy growth at 2.8%, followed by Oceania (+2.2%). Southeast Asia was the only region to see occupancy decline in 2014 (-4.0%).
“Southeastern Asia’s performance was primarily driven by Thailand’s political unrest and decline in leisure demand. We started to see some signs of improvement during the last few months of 2014. Bangkok posted a 14.5% increase in occupancy during December 2014, which is a good sign overall,” Ms Winkle added.
In terms of individual markets, Shanghai reported Asia’s largest full-year occupancy increase, rising 8.5% to 71.9%, while Osaka reported the strongest growth both in terms of ADR (+8.1% to US$119.32) and revPAR (+11.0% to US$105.19).
China and India experienced occupancy growth in 2014, although rates remain a challenge in both countries.