Asia Pacific hotels experience dip in May

Friday, 28 June 2013 05:47 -     - {{hitsCtrl.values.hits}}

According to data compiled by STR Global, hotels in the Asia Pacific region experienced decreases in the three key performance metrics in May 2013 when reported in US dollars. In May, the Asia Pacific region’s occupancy ended the month with a 1.3% decrease to 65.9%, ADR dropped 2.5% to US$ 119.69 while RevPAR was down 3.8% at US$ 78.82. “In U.S. dollars, Asia Pacific was the only global region to report negative RevPAR growth year-to-date 2013, falling 3.1%,” said Elizabeth Winkle, Managing Director of STR Global. “The RevPAR decrease was mainly driven by Central/South Asia, where countries such as India are suffering from oversupply, and in Northeastern Asia, where countries such as China are reigning in spending. However, Southeast Asia is reporting strong growth, where markets such as Jakarta are posting an 18.2% growth in ADR year-to-date 2013; ADR growth is driving RevPAR performance in this region.” Highlights from key market performers for May in local currency (year-on-year comparisons): Tokyo, Japan, rose 5.8% in occupancy to 85.4%, reporting the largest increase in that metric. Taipei, Taiwan (+16.0% to TW$ 6,248.09), and Jakarta, Indonesia (+13.7% to IDR 1,056,378.88), achieved the largest ADR increases in May. Three markets experienced double-digit RevPAR increases: Tokyo (+13.9% to JPY 13,458.47); Jakarta (+11.3% to IDR 752,117.98); and Osaka, Japan (+10.2% to JPY 9,330.47). Seoul, South Korea, reported the largest decrease in all three key performance metrics. The market’s occupancy fell 12.9% to 74.0%, ADR was down 9.2% to KRW 199,503.81 and RevPAR decreased 20.9% to KRW 147,594.17. Highlights from key market performers for May in US dollars (year-on-year comparisons): Three markets experienced double-digit ADR increases: Taipei (+14.9% to US$ 207.96); Auckland, New Zealand (+12.3% to US$ 112.49); and Jakarta (+10.0% to US$ 107.43). Tokyo fell 15.6% in ADR to US$ 155.91, reporting the largest decrease in that metric. Auckland experienced the only double-digit RevPAR increase, rising 15.9% to US$ 82.23. Seoul fell 17.4% in RevPAR to US$ 130.61, reporting the largest decrease in that metric, followed by Osaka (-13.5% to US$ 92.36) and Tokyo (-10.7% to US$ 133.22).