Asian occupancy falls, but rates keep rising
Hotels in the Asia Pacific region experienced a 3.5percent drop in occupancy levels in March 2011, according to the latest datafrom STR Global. But the drop in occupancy levels, which averaged 66.5 percentlast month, partially caused by the 11 March earthquake and tsunami in Japan,was more than offset by a 13.8 percent rise in average daily rates (ADR), whichhit US$144 and allowed the region’s average revenue per available room (revPAR)to climb 9.9 percent year-on-year to US$96.
“This month we saw the impact of the earthquake,tsunami and its aftermaths on the Japanese hotel market,” said ElizabethRandall, Managing Director of STR Global. “Across Japan, occupancy declined 21percent for the month in addition to a slight drop in average rate. Cities inthe southern parts of Japanperformed better than cities closer to the affected northeastern area as peoplemoved farther away from the threat of radiation exposure. Tokyo’s occupancy moved from 83 percent inMarch 2010 to 55 percent this year, and its average room rate (-4 percent)dropped slightly more than the national average (-0.1 percent) to JPY14,181(approximately US$173). Osaka’soccupancy, in comparison, dropped only slightly by 2.8 percent to 81 percent,and its average rate increased 10 percent to JPY12,083. In the city of Sendai, where we usuallytrack the performance of nine hotels, three properties closed and the Marchperformance of six reporting hotels showed a decline of 23 percent in revPAR.”
Elsewhere, Bangkokexperienced a 10.0 percent rise in occupancy, however the double-digityear-on-year increase followed a poor month in 2010, which saw the start ofprotests on the streets of the Thai capital. Jakarta recorded a 6.0 percent occupancyincrease to 71.9 percent.
In US dollar comparisons, Hong Kong achieved the largest ADR increase, rising 27.8 percent toUS$265. New Delhiended the month virtually flat with a 0.8 percent ADR decrease to US$199,marking the only decrease in that metric. Four markets experienced revPARincreases of more than 20 percent: Hong Kong (+32.8 percent to US$230);Brisbane (+27.8 percent to US$167); Jakarta(+26.2 percent to US$67); and Sydney (+25.0 percent to US$177).
In the first quarter of 2011, the Asia Pacificregion’s occupancy was virtually flat, reporting a 0.2 percent decrease to 64.0percent. ADR was up 13.1 percent to US$144, and revPAR increased 12.8 percentto US$92.
“Asia Pacific overall finished the first quarter2011 with a level occupancy performance and increases in average room rate togain 13 percent in RevPAR,” Randall explained. “As we saw a strong demandrecovery in 2010, we expect to see occupancy performance level out and averageroom rates grow. Asia Pacific achieved the highest occupancy (64 percent) ofthe four world regions in the first quarter.”
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