Hotels in the Asia Pacific region experienced falling revPAR (revenue per available room) in October 2014, as occupancy and room rates both declined.
According to the latest data from STR Global, the region’s average occupancy slipped 0.6% to 72.0% while average daily rates (ADR) dropped 3.6% to US$117.54. This caused the region’s revPAR to fall 4.2% to US$84.65.
But Elizabeth Winkle, managing director of STR Global, said there were still grounds for optimism.
“Asia Pacific has seen positive growth for both supply and demand year to date, signifying the popularity of the region from a development and destination perspective,” she said.
“Australia & Oceania and Central & South Asia are reporting the same levels of occupancy growth year to date (+2.3%), whilst… Australia & Oceania is achieving absolute occupancy levels of 74.8% year-to-date.
“While growth has been minimal in Northeastern Asia, Japan still is achieving occupancy levels of above 80.0% year to date,” she added.
The region’s overall results have been impacted by the poor performance of Southeast Asia, which experienced a 7.8% drop in revPAR in October.
“In Southeastern Asia, Thailand has seen year-to-date ADR growth in local currency terms despite decreasing occupancy. Year-to-date, the country’s occupancy is 62.7%, which is below its long-run average but still relatively high when compared to other parts of the world,” Ms Winkle commented.
In terms of key markets, Taipei (+9.2% to 75.2%) and Hanoi (+6.8% to 74.6%) saw the strongest occupancy growth, while Delhi (-10.6% to 56.8%) and Jakarta (-10.0% to 66.3%) saw the sharpest declines.
In US dollar terms, Osaka (+6.9% to US$121.96) saw good ADR growth, but Bali (-16.8% to US$130.62) and Delhi (-12.8% to US$110.22) both struggled. And in terms of revPAR, Osaka achieved the region’s only double-digit increase (+10.8% to US$111.75), while Delhi slumped 22.0% to US$62.57.
For the first 10 months of the year, the Asia Pacific region has now experienced a 2.0% drop in revPAR, to US$75.91, as a 2.6% drop in ADR offset a 0.6% rise in occupancy.