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.

Phuket posted thestrongest occupancy growth in August
Phuket posted thestrongest occupancy growth in August

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).

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