Asian occupancy slump drives down hotel revPAR - STR Global
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World-leading hotel benchmarking company, STR Global, has released its statistics for October, revealing further evidence of a slump in revPAR for hotels in the Asia Pacific region. Statistics for the 10 months ending 31 October 2008 showed that occupancy in hotels across Asia Pacific dropped 7.4% compared to the same period in 2007. Overall occupancy levels for the period were just 67.3%. Compounding this average daily rates (ADR) also fell by 3.5% to US$135.42 - a worrying trend as ADR had been rising gradually throughout the year, previously off-setting the loss in occupancy. Revenue per available room (revPAR) in Asia Pacific during the 10 month period was down 10.6% to US$91.08.
By contrast the Middle East continued to perform well; a slight occupancy rise of 2.2% was added to a significant ADR increase of 21.9% (to US$176.27) to boost revPAR US$131.62 - up 24.6% year-on-year.
“The worsening economic conditions started by the banking crisis that has affected economies across the globe have resulted in revPAR declines in more and more regions”, said James Chappell, Managing Director of STR Global. “Asia Pacific has started to decline this month as business in particular has started to tighten the belt at uncertain market conditions,” he added.
Year-on-year October 2008 hotel performance (US$)
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