Bangkok hotels reported a significant improvement in operational performance last month
August was a positive month for hotel markets across the Asia Pacific, though there were significant dips and recoveries in key destinations across the continent.
According to STR Global data, the region’s overall occupancy ended the month virtually flat with a 0.1% increase to 68.1%, as demand and supply growth matched one another. Meanwhile, average daily rates (ADR) increased 12.2% to US$142, and revenue per available room (REVpar) jumped 12.3% to US$97.
Singapore and Australia remained strong, with incremental year on year increases in occupancies to 83.6% and 74.4% respectively, as well as strong growth in RevPAR. Meanwhile, one of region’s hottest hotel markets, India, witnessed a significant drop in occupancy of 8%, matched by a drop in RevPAR which fell by 11.2%.
Hong Kong and Thailand were the outstanding performers for the month. Bangkok reported the largest occupancy increase, rising 26.7 points to 65.3%, followed by Phuket with a 25.2 points increase to 71.8%. The surge in demand for hotels rooms drove up RevPAR in both destinations, rising 38.8% in Bangkok to US$62 and 37.4% to US$66 in Phuket. Meanwhile, Hong Kong led regional ADR growth rising 27.9% to HKD1,749 (US$224) and RevPAR escalated 34.1% to US$192.
August was not a good month, however, for two of the region’s key growth markets. Shanghai and New Delhi both registered double-digit declines in hotel occupancies, falling 21.1 points to 56.3% and 19.4points to 52.9% respectively. The cities also posted the largest ADR decreases for the month and RevPAR fell 31.0% in Shanghai to CNY401 (US$63), followed by New Delhi with a 24.7% decrease to INR3,592 (US$72).
Demand is returning month on month in Japan. Five months post the tragic events in March, hoteliers reported 81% occupancy which matched August 2010 results. That said, Tokyo’s ADR fell 9.2% to JPY13,021 (US$170).
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