Asian hotel sector stagnates
The hotel sector in Asia Pacific remained flat in August, with a small rise in average rates offsetting a marginal drop in occupancy levels.
According to the latest data from STR Global, the region’s average daily rate (ADR) climbed 0.7% year-on-year to US$139, while average occupancy dipped 0.1% to 68.1%. This allowed revenue per available room (revPAR) to increase 0.7% to US$95. This stagnation followed a 2.1% drop in revPAR in July 2012 – the Asia Pacific region’s first contraction since 2009.
“Average room rate growth across the Asia Pacific region slowed down in recent months with a 2% increase for the first eight months this year, after stronger growth performances last year,” said Elizabeth Randall-Winkle, Managing Director at STR Global. She also noted however, that average rates for the first eight months of 2012 are now just US$4 just below their 2008 peak, a fact Ms Randall-Winkle said was reflective of “the strong market conditions across most of Asia Pacific”.
In terms of occupancy, Phuket reported the largest increase last month, rising 10.4% to 76.8%. Taipei (-9.5% to 62.4%), and Ho Chi Minh City (-9.3% to 56.5%) however, suffered from falling demand. Still regaining ground from last year’s natural disasters, Tokyo’s ADR rose 14.0% to US$185, but the Indian cities of Delhi (-25.5% to US$112) and Mumbai(-19.5% to US$132) continued to see a sharp decline in rates from their previously inflated levels.
In terms of key countries, Singapore reported growth in both ADR (+6.5% to SG$292) and occupancy (+4.0% to 85.9%), while Australia also performed well, with ADR climbing 5.2% to AU$132 and occupancy edging up 2.2% to 75.6%. China had a mixed month, with 3.5% ADR growth, to CNY473, offsetting a 1.6% dip in occupancy, to 63.8%.
The Asia Pacific region’s average revPAR of US$95 remains strong, ahead of the Middle East and Africa (US$83) and the Americas (US$74), but slightly lower than Europe (US$96).