Asia Pacific Hotels' Occupancy Rises in May
According to STR Global, hotels in the Asia Pacific region experienced positive results during May 2014. The region's occupancy during May 2014 rose 3.2 percent to 67.6 percent; its average daily rate ended the month virtually flat with a 0.1-percent increase to US$115.10; and its revenue per available room increased 3.3 percent to US$77.80.
"One of the strongest performers in the region in terms of occupancy growth was the Philippines, rising 13.7 percent to 70.6 percent due to an increase in demand of 17.6 percent", said Elizabeth Winkle, managing director of STR Global. "Indonesia reported positive rate growth in May, rising 10.7 percent. This is one of the highest increases in the region, primarily driven by Jakarta, which increased rates by 12.1 percent. Thailand continues to experience decreases in both occupancy (-12.6 percent) and RevPAR (-10.2 percent), while ADR continues to grow. Singapore and Hong Kong traditionally tend to follow each other in ADR growth. Year to date, Singapore is outpacing Hong Kong, as rates grew 2.9 percent and 1.6 percent, respectively".Highlights from key market performers for May 2014 in local currency (year-over-year comparisons):
- Three markets reported double-digit occupancy increases: Shanghai, China (+11.4 percent to 73.9 percent); Manila, Philippines (+10.2 percent to 71.7 percent); and Seoul, South Korea (+10.2 percent to 80.3 percent).
- Bangkok, Thailand, fell 18.1 percent in occupancy to 53.9 percent, posting the largest decrease in that metric.
- Osaka, Japan (+16.5 percent to JPY12,944.47), and Jakarta, Indonesia (+12.1 percent to IDR1,163,781.87), achieved the largest ADR growth.
- Delhi-NCR, India, experienced the largest ADR decline, falling 9.6 percent to INR5,719.28.
- Three markets reported RevPAR growth of more than 15.0 percent: Osaka (+19.6 percent to JPY10,975.97); Hong Kong (+16.7 percent to HKD1,507.91); and Shanghai (+16.4 percent to CNY465.43).
Highlights from key market performers for May 2014 in U.S. dollars (year-over-year comparisons):
- Bangkok fell 16.8 percent in RevPAR to THB1,609.07, reporting the largest decrease in that metric.
- Osaka grew 15.8 percent in ADR to US$127.29, reporting the largest increase in that metric. Seoul followed with a 14.0-percent increase to US$207.43.
- Delhi-NCR (-13.7 percent to US$96.85) and Bali, Indonesia (-11.0 percent to US$120.96), posted the only double-digit ADR decreases.
- Five markets achieved RevPAR growth of more than 15.0 percent: Seoul (+25.6 percent to US$166.64); Osaka (+18.8 percent to US$107.93); Hong Kong (+16.9 percent to US$194.49); Shanghai (+16.6 percent to US$75.39); and Auckland, New Zealand (+15.3 percent to US$95.83).
- Bangkok fell 23.5 percent in RevPAR to US$48.95, reporting the largest decrease in that metric.
Asia Pacific's hotel market also reported 2,336 hotels Under Contract comprising 521,017 rooms, according to the May 2014 STR Global Construction Pipeline Report. The Under Contract data includes projects in the In Construction, Final Planning and Planning stages but does not include projects in the unconfirmed stage.
Shanghai, China, reported the largest number of rooms under construction with 9,028 rooms in 37 hotels. Five other markets also reported more than 5,000 rooms under construction: Manila, Philippines (6,456 rooms in 21 hotels); Jakarta, Indonesia (6,152 rooms in 26 hotels); Chengdu, China (5,869 rooms in 22 hotels); Bali, Indonesia (5,798 rooms in 42 hotels); and Delhi-NCR, India (5,297 rooms in 28 hotels).