The decline in performance of hotels in the Asia Pacific region has continued in 2014.
The region experienced a 4.1% drop in revPAR (revenue per available room) in 2013, as falling rates impacted the region. And according to STR Global’s data for January 2014, revPAR continued to fall in the first month of the year.
Hotel occupancy in the Asia Pacific region fell 3.6% to 62.1% in January, while average daily rates (ADR) slid 1.9% to US$125.75. This pushed revPAR down 5.4% from just over US$82 in January 2013 to US$78.03 last month.
“There has not been a lot of positive news coming out of the region, and that is reflected in hotel performance in January,” Elizabeth Winkle, managing director of STR Global, admitted.
“Thailand performance was varied in January, as the country reported declines in both occupancy (-13.8%) and revPAR (-3.9%), when measured in local currency. Bangkok reported steep performance declines while ADR and revPAR in Phuket were positive when measured in local currency,” she added.
Across the region, only Bali reported a double-digit occupancy increase, rising 10.2% to 66.0%, but four markets experienced double-digit occupancy declines: Bangkok (-25.8% to 57.0%), Beijing (-13.8 to 54.7%), Hanoi (-10.7% to 60.8%) and Ho Chi Minh City (-10.0% to 65.0%).
And in terms of ADR, four markets – Osaka (+15.5% to JPY11,540, or approx. US$113), Bali (+14.8% to IDR1.7 million, approx. US$145), Jakarta (+14.1% to IDR1.2m) and Tokyo (+10.1% to JPY15,813) – achieved double-digit growth, while Delhi saw the steepest drop, falling 6.6% to INR6,824, or approx. US$110.
In revPAR terms, Bali (+26.5% to IDR1.1m) and Osaka (+20.3% to JPY8,978) experienced the strongest growth, but protest-hit Bangkok fell 22.1% to THB1,985, or approx. US$61.
Results in January 2014 were partially impacted by the timing of Chinese New Year.