India’s hotels continued to struggle through July according to the latest statistics released by STR Global.
Average daily rates (ADR) in Delhi (-27.3% to US$112) and Mumbai (-22.1% to US$133) fell rapidly from the inflated levels of previous years, as hotels come under pressure from an influx of new room supply, especially in the midscale market. Both cities posted Asia’s largest revPAR decreases for the month, falling -30.7% to US$61, and -19.6% to US$74 respectively.
Other major markets, including Australia, China, and Singapore, also reported monthly declines in occupancy. This was reflected in falling revenue per available room (revPAR) across the Asia Pacific, which declined for the first time since October 2009. Regional revPAR fell 2.1% to US$93, as occupancy dropped 2.2% to 68.3% last month, while ADR crept up just 0.2% increasing to US$136.
In terms of individual markets, Hanoi saw to strongest occupancy growth, rising 23.7% to 64.8%. Jakarta (-10.3% to 73.1%) and Kuala Lumpur (-10.0% to 78.4%) however, both experienced double-digit declines. In US dollar terms, Taipei experienced the biggest ADR gains, climbing 14.0% year-on-year to US$185. Three Asian markets achieved revPAR growth in excess of 15%: Hanoi (+22.3% to US$68), Phuket (+20.9% to US$73) and Tokyo (+17.6% to US$145).
Despite the regional decline, STR Global’s Managing Director Elizabeth Randall said there were successes in certain countries, most notably Thailand.
“Thailand had its best July occupancy performance since 2006, with 67.8% for July 2012, just beating its July 2006 performance of 67.1%,” Ms Randall observed. “We have seen demand for hotel accommodation across the country increasing for the seven months this year (+10.3%) resulting as well from the increase in international visitors, especially from China.”