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%).