Hong Kong’s hotel sector experienced a sharp decline in revPAR (revenue per available room) in February 2016.
According to the latest monthly data from STR, the city’s occupancy dropped 10.0% to 75.5% last month, while average daily rate (ADR) declined 8.1% to HK$1,453 (approx. US$187). This caused revPAR to plunge 17.3% to HK$1,098.
Each of these three performance levels were the lowest for a February in Hong Kong since 2010. STR analysts attributed the results to new visa regulations and a less favourable exchange rate for Chinese tourists.
In contrast, Singapore’s revPAR increased 6.1% to SG$254.65 (approx. US$187) in February, due to rising occupancy and ADR. This was partially caused by the Singapore Airshow, which boosted demand for hotel rooms in the city.
In other key cities, Shanghai saw rising occupancy, ADR and revPAR in February, although its absolute revPAR of CNY312.08 (approx. US$48) remains significantly lower than Hong Kong’s. And in Delhi, a 1.3% rise in occupancy offset a slight dip in rates, causing revPAR to increase 0.9% to INR5,380 (approx. US$81).
Overall, the Asia Pacific hotel sector experienced small increases in all three performance metrics in February 2016. Occupancy edged up 0.3% to 64.2%, ADR rose 0.6% to US$109.42 and revPAR increased 1.0% to US$70.28.