Hotels in the Asia Pacific region reported nearly flat results in the three key performance metrics when reported in U.S. dollar constant currency, according to October 2016 data from STR.
Compared with October 2015, the Asia Pacific region reported a 0.5% increase in occupancy to 71.3%. However, average daily rate (ADR) dipped 0.4% to US$103.77, and revenue per available room (RevPAR) was mostly flat (+0.1% to US$74.02).
Performance of featured countries for October 2016 (local currency, year-over-year comparisons):
India reported its first month with a decline in occupancy (-4.6% to 59.4%) since November 2015. ADR in the country was up 1.4% to INR5,865.97, but RevPAR still fell 3.2% to INR3,484.48. STR analysts attribute the performance to a 2.9% increase in supply as well as strong comparison base from last October when hotels recorded an 18.6% increase in demand.
New Zealand is on course for its second consecutive year with double-digit RevPAR growth. Occupancy rose 3.0% to 80.0%, the nation’s highest actual occupancy level for any October on record. ADR also increased 12.9% to NZD175.92, resulting in a 16.3% increase in RevPAR to NZD140.79. New Zealand has posted 40 straight months with year-over-year RevPAR growth.
Taiwan’s hotels have struggled since September 2015, and October 2016 was no exception with a 5.5% drop in occupancy to 66.5%. The market recorded relatively flat ADR (+0.2% to TWD5,773.02) for the month, but RevPAR declined 5.4% to TWD3,841.15.
Performance of featured markets for October 2016 (local currency, year-over-year comparisons):
Beijing, China, registered a 0.4% increase in occupancy to 77.2% in addition to a 2.0% rise in ADR to CNY594.63. As a result, RevPAR grew 2.4% to CNY459.16. The market’s supply has remained stable (+0.7% year to date), allowing an increase in demand (+3.4% year to date) to boost performance. The China Open (3-9 October) tennis tournament resulted in several days of strong RevPAR growth, specifically 4 October (+71.3%) and 5 October (+63.2%).
Hong Kong reported positive figures across all three key performance indicators for the first time since April. Occupancy increased 0.6% to 90.6%. ADR was nearly flat, up 0.1% to HKD1583.05, and RevPAR grew 0.7% to HKD1,433.55. STR analysts note that performance increases were strongest on Fridays and Saturdays during the month, suggesting that leisure business is a driver of growth in the market. This also marked the first time since 2011 in which Hong Kong recorded year-over-year RevPAR growth for an October, following particularly sharp declines in October 2015 (-6.8%) and 2014 (-10.8%).
Sydney, Australia, reported an overall performance decline tied to a significant increase in supply (+4.3%) and an off year for the biennial Pacific International Maritime Exposition. Occupancy fell 4.2% to 84.0%. ADR was up 3.1% to an all-time October high in the market of AUD232.17. RevPAR dipped 1.3% to AUD195.04. STR analysts note that the largest occupancy declines in the market were seen towards the beginning of the month with days that compared with the aforementioned Expo last year.