STR Global: Asia Pacific hotel results for January 2015

LONDON - Hotels in the Asia Pacific region experienced mixed results year-over-year in the three key performance metrics during January 2015 when reported in U.S. dollars, according to data compiled by STR Global.

The region’s occupancy for January grew 4.9 percent to 64.7 percent; its average daily rate dropped 7.2 percent to US$111.50; and its revenue per available room decreased 2.7 percent to US$72.18.

“In U.S. dollars, the Asia Pacific region is showing a decline in RevPAR rates. However, the region increased 2.0 percent on a constant-currency basis”, according to Elizabeth Winkle, managing director of STR Global.

Performance by country varied significantly on a local-currency basis.

“New Zealand reported the highest RevPAR increase in the region (14.6 percent to NZD115.34), benefitting in part from the Asian Football Confederation’s Asian Cup recently held in neighboring Australia”, Winkle said.

Japan reported increases in both occupancy (3.1 percent to 74.1 percent) and ADR (8.6 percent to JPY12,935.67), resulting in a RevPAR gain of 12.0 percent to JPY9,591.64 to continue the country’s strong performance during 2014.

Despite an ADR decrease of 5.1 percent, China still managed to post a RevPAR gain (3.7 percent) as a result of a 9.2 percent increase in occupancy.

“With Chinese New Year celebrations commencing in mid-February, we expect to see a dip in most key performance measures in the next month”, Winkle said.

"India increased in all key performance measures, predominantly driven by occupancy (3.6 percent). Rate growth remained elusive in the country during 2014 with a lot of room for improvement", Winkle said.

Highlights from key market performers for January 2015 in local currency (year-over-year comparisons):
• Six markets experienced double-digit occupancy increases, including: Bangkok, Thailand (+31.5 percent to 76.4 percent); Hanoi, Vietnam (+26.0 percent to 76.6 percent); Shanghai, China (+18.3 percent to 67.1 percent); Beijing, China (+13.6 percent to 62.9 percent); Ho Chi Minh City, Vietnam (+10.8 percent to 72.4 percent); and Mumbai, India (+10.6 percent to 81.3 percent).
• Bali, Indonesia, reported the only double-digit occupancy decrease, falling 14.7 percent to 55.8 percent.
• Osaka, Japan, reported the only double-digit ADR increase, rising 19.1 percent to JPY13,194.63.
• Sanya, China, experienced the largest ADR decrease (-9.7 percent to CNY1,028.17).
• Nine key markets posted double-digit RevPAR increases in local currency, led by Bangkok (+35.5 percent to THB2,638.86); Osaka (+24.3 percent to JPY10,875.51); and Hanoi (+24.0 percent to VND1,820,442.68).

Performances of key countries in January 2015* (all monetary units in local currency):

sourced:traveldailynews.asia