Hotels in Asia Pacific report drop in RevPAR in April

Thursday, 18 June 2015 00:00 - - {{hitsCtrl.values.hits}}

According to data compiled by STR Global, hotels in the Asia Pacific region experienced mixed year-on-year results in the three key performance metrics during April 2015 when reported in US dollars.

The region’s occupancy for April increased 1.6% to 69.6%, ADR dropped 5.6% to $ 109.77, and RevPAR decreased 4.1% to $ 76.43.

Performance by country varied significantly on a local-currency basis.

Japan saw the largest increases in ADR (+14.3% to JPY 14,598.76) and RevPAR (+17.4% to JPY 12,277.33). Occupancy in the country also increased 2.7% to 84.1%. The devaluation of the Japanese yen has made the country a more affordable destination, and inbound travel has increased in year-over-year comparisons.

Thailand recorded the largest increase in occupancy (+13.5% to 72.4%) and saw a double-digit rise in RevPAR (+11.5% to THB 2,519.04). ADR in the country fell 1.8% to THB 3,479.29. Thailand’s performance continues to improve in year-on-year comparisons, most notably in Bangkok, as the country is further removed from last year’s coup.

After Japan, French Polynesia was the only other country to report a double-digit increase in ADR, up 10.1% to XPF 39,295.22.

New Zealand posted a double-digit increase in RevPAR (+13.3% to NZD 111.12) driven by increases in occupancy (+6.3% to 77.3%) and ADR (+6.6% to NZD 143.81). The country has seen demand growth continue to outweigh supply growth.

Myanmar experienced the largest decrease in occupancy (-34.0% to 31.3%) and RevPAR (-37.3% to MMK 50,758.32).

The steepest decline in ADR occurred in Malaysia, where ADR dropped 7.0% to MYR 344.00. The country experienced double-digit decreases in occupancy (-11.0% to 58.1%) and RevPAR (-17.2% to MYR199.97).

China reported an increase in occupancy (+1.6% to 67.9%) but a decrease in ADR (-3.2% to CNY554.42) and RevPAR (-1.7% to CNY 376.26). The country’s results were affected by performance declines in Hong Kong, a market which continues to see a decrease in government spending.

Highlights from key market performers for April 2015 in local currency (year-on-year comparisons):

Bangkok experienced the largest occupancy increase, up 22.2% to 70.2%. Sanya, China (+18.6% to 59.9%) and Delhi-National Capital Region, India (+14.7% to 64.7%), were the other markets to post a double-digit occupancy increase for the month.

Kuala Lumpur, Malaysia (-12.3% to 61.7%) and Bali, Indonesia (-10.8% to 56.1%) reported the largest occupancy decreases.

Osaka, Japan, reported the largest ADR increase, rising 30.9% to JPY 16,914.66. Jakarta, Indonesia, followed with a 16.3% increase in ADR to IDR 1,284,248.63.

Hong Kong experienced the only double-digit ADR decrease, down 10.9% to HKD 1,623.03.

Osaka (+34.7% to JPY 15,677.41) reported the largest increase in RevPAR, followed by Bangkok (+27.6% to THB 2,252.89).

Kuala Lumpur (-18.0% to MYR 224.89) and Hong Kong (-14.3% to HKD 1,328.56) experienced the largest RevPAR decreases.