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STR: Asia Pacific hotel performance for May 2016

June 27, 2016 Hotel Trends No Comments Print Print Email Email

Hotels in the Asia Pacific region recorded mostly negative May 2016 results in the three key performance metrics when reported in U.S. dollar constant currency, according to data from STR.http://recruitment.travelcounsellors.com/au/?utm_source=eGlobal&utm_medium=banner&utm_campaign=Its%20time

Compared with May 2015, the Asia Pacific region reported nearly flat occupancy (+0.1% to 67.6%). Average daily rate was down 1.8% to US$95.50, and revenue per available room dipped 1.7% to US$64.57.

Performance of featured countries for May 2016 (local currency, year-over-year comparisons):

China reported virtually flat occupancy (-0.1% to 65.9%) as well as decreases in ADR (-4.6% to CNY507.58) and RevPAR (-4.8% to CNY334.35). STR analysts attribute a portion of the overall RevPAR decline to an 8.2% year-over-year RevPAR decrease in the Transient segment. Additionally, Group rates were down 5.5%, while Group occupancy increased 3.2%.

Indonesia posted increases in occupancy (+7.2% to 64.5%) and RevPAR (+5.4% to IDR641,737.24). ADR in the country was down 1.7% to IDR995,519.71. According to the Indonesia Ministry of Culture and Tourism, tourist arrivals increased 7.5% for the April year to date time period, including a 31.4% rise in arrivals from India. That lift in arrivals is reflected in five consecutive months of year-over-year occupancy increases. The May RevPAR increase was the first since August 2015.

New Zealand reported increases across the three key performance metrics: occupancy (+2.7% to 73.5%), ADR (+8.1% to NZD152.58) and RevPAR (+11.1% to NZD112.07). According to Statistics New Zealand, the number of international arrivals to the country grew 10.6% through April with China as the largest feeder market. STR analysts point to the high demand (+3.9% year to date) and low supply growth (+0.4% year to date) as the combination behind consistently strong RevPAR performance in the country.

The Philippines saw decreases in occupancy (-3.5% to 67.0%) and RevPAR (-3.3% to PHP3,561.00). ADR was nearly flat (+0.2% to PHP5,317.18). STR analysts believe that the negative performance was due in part to election activity in the country.

Performance of featured markets for May 2016 (local currency, year-over-year comparisons):

Auckland, New Zealand, experienced a 2.2% lift in occupancy to 80.5% as well as double-digit growth in ADR (+10.8% to NZD164.65) and RevPAR (+13.3% to NZD132.57). Auckland’s performance mirrored that of the entire country, aided by international arrivals and low supply. May was the second consecutive month of a 1.2% supply decrease in the market.

Sydney, Australia, saw occupancy fall slightly (-0.7% to 83.0%), but ADR (+3.2% to AUD201.65) pushed RevPAR (+2.5% to AUD167.36) for the month. According to STR analysts, Sydney’s hotels benefitted from a combination of events in May, most importantly the CeBIT 2016 business technology conference (2-4 May).

Kuala Lumpur, Malaysia, posted increases across the three key performance metrics: occupancy (+3.6% to 62.4%), ADR (+1.6% to MYR346.15) and RevPAR (+5.3% to MYR215.98). STR analysts believe that the weakening of the Malaysian Ringgit has benefitted hotels as the market has become a cheaper destination. In addition, lessened visa requirements are now drawing Chinese travelers back to Malaysia.

Mumbai, India, reported a 1.2% decrease in occupancy to 68.1%, but a 4.1% rise in ADR to INR7,133.11 pushed RevPAR up 2.8% to INR4,858.39. RevPAR in the Transient segment increased 12.8% during the month, while Group RevPAR dropped 8.3%. Further, most of the month’s demand was captured during weekdays (77.4%).

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