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STR: Asia Pacific hotel performance for Q1 2016, March 2016

April 30, 2016 Hotel Trends No Comments Email Email

Hotels in the Asia Pacific region recorded mostly positive results in the three key performance metrics when reported in U.S. dollar constant currency, according to Q1 2016 data from STR.

Compared with Q1 2015, the Asia Pacific region reported a 1.7% increase in occupancy to 66.6%. Average daily rate remained nearly flat (-0.2% to US$105.04). Revenue per available room rose 1.5% to US$69.93.

Performance of featured countries for Q1 2016 (local currency, year-over-year comparisons):

Of the countries in the region, French Polynesia experienced the quarter’s only double-digit increase in occupancy (+10.5% to 60.9%). A 14.3% rise in ADR to XPF41,639.09 also helped a 26.4% spike in RevPAR to XPF25,375.58. Specifically in March, French Polynesia reported a 15.1% increase in occupancy to 67.5% and a 26.4% rise in RevPAR to XPF27,632.04. According to STR analysts, a weak CFP franc in comparison with the U.S. dollar and Chinese Yuan made French Polynesia a great value for U.S. and Chinese travelers. The increase in demand from those markets was well reflected in Bora Bora.

 India reported positive results across the three key performance metrics: occupancy (+5.1% to 67.6%), ADR (+1.5% to INR6,197.11) and RevPAR (+6.7% to INR4,190.92). Occupancy was the main driver of performance for the quarter linked to slowing supply growth in the country’s major cities, according to STR analysts. For the quarter, demand in India grew 8.9%, while supply increased 3.6%.

Thailand posted positive results in each of the three key performance measurements: occupancy (+4.6% to 83.6%), ADR (+1.4% to THB4,139.08) and RevPAR (+6.0% to THB3,459.55). STR analysts note that ADR for the quarter increased in local currency but dropped significantly in euros and U.S. dollars thanks to fluctuation in exchange rate. As a result, Thailand was viewed as a cheaper destination for foreign visitors. For the first time on record, absolute occupancy eclipsed 80.0% in each of the first three months of the year. The combination of occupancy and ADR resulted in the highest quarterly RevPAR STR has ever benchmarked in Thailand.

Vietnam recorded a 5.6% increase in occupancy to 68.7% and a 4.5% rise in ADR to VND2,887,891.33. As a result, RevPAR grew by double-digits (+10.3%) to VND1,984,418.28. According to the Vietnam National Administration of Tourism, the country saw a 13.5% year-over-year increase in arrivals from Russia during the quarter. STR analysts note that the country is viewed as a more secure destination compared with traditional destinations for Russians, and the Vietnamese government has eased visa policies. The country’s ADR was the highest on record for any quarter.

Singapore reported growth in occupancy (+1.9% to 83.0%) and RevPAR (+1.0% to SGD238.16). ADR remained nearly flat (-0.8% to SGD286.83). Aside from the days of the Asia Pacific Maritime 2016, March was a quiet month for Singapore. The country’s quarterly performance was saved by February (RevPAR +5.9%) and the Singapore Airshow (16-21 February).

Performance of featured markets for Q1 2016 (local currency, year-over-year comparisons):

Bali, Indonesia, saw a double-digit rise in occupancy (+12.2% to 59.8%), but a 7.1% drop in ADR to IDR1,432,042 limited RevPAR growth to +4.3% (IDR856,800.71). STR analysts note that hoteliers were raising prices during Q1 2015, but as the market recovers, hoteliers have adopted a different strategy where in lower rates are pushing occupancy.

Melbourne, Australia, reported nearly flat performance across the board: occupancy (+0.1% to 84.4%), ADR (-0.8% to AUD198.64) and RevPAR (-0.7% to AUD167.73). The stable performance in comparison to a solid Q1 2015 was helped by the Australian Open tennis championship in January and the Formula 1 Australian Grand Prix in March.

Sanya, China, experienced a 6.8% increase in occupancy to 75.3% but decreases in ADR (-6.8% to CNY1,098.49) and RevPAR (-0.5% to CNY827.57). Low rates led to the Sanya’s highest March occupancy (66.3%) since 2007.

Seoul, South Korea, reported decreases in the three key performance metrics: occupancy (-0.8% to 66.9%), ADR (-3.1% to KRW175,431.58) and RevPAR (-3.8% to KRW117,419.68). The country had experienced 13 straight months of year-over-year occupancy declines before a 1.5 increase in March. As a result, RevPAR grew for the first time since September 2014. STR analysts point to those improvements as a good sign as the entire country continues its recovery from the Middle East Respiratory Syndrome (MERS) outbreak last year. The Ministry of Culture, Sports & Tourism (MCST) launched “Visit Korea Year 2016-2018” during Q1 2016 to attract more foreign tourists.

Asia Pacific region performance for March 2016 (U.S. dollar constant currency, year-over-year comparisons):

Asia Pacific results were mostly positive when compared with March 2015. The region reported a 2.0% increase in occupancy to 69.6%. ADR remained nearly flat (-0.2% to US$102.94). RevPAR increased 1.8% to US$71.68.

Additional performance data

Looking for performance data for a market not featured in this month’s release? STR’s sample comprises more than 53,000 hotels and 7.2 million hotel rooms around the globe. Please contact for additional data requests.

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