STR: Asia Pacific hotel performance for Q1 2017

LONDON - The hotel industry in the Asia Pacific region reported mostly positive results in the three key performance metrics during the first quarter of 2017, according to data from STR.

U.S. dollar constant currency, Q1 2017 vs. Q1 2016

Asia Pacific

• Occupancy: +3.3% to 68.3%
• Average daily rate (ADR): -0.3% to US$104.00
• Revenue per available room (RevPAR): +3.0% to US$71.04
• Local currency, Q1 2017 vs. Q1 2016

Indonesia

• Occupancy: +4.1% to 57.0%
• ADR: +0.2% to IDR1,015,410.47
• RevPAR: +4.3% to IDR578,716.49

Indonesia's hotel industry experienced a slight performance rebound after a 4.1% RevPAR decline for total-year 2016. Occupancy was the main performance driver during the quarter, as demand growth (+8.3%) doubled the rate of supply growth (+4.1%). STR analysts note that the visit from Saudi Arabia's King Salman in early March boosted Group business (bookings of 10 or more rooms per night), especially in Jakarta and Bali.

Malaysia

• Occupancy: +2.2% to 65.3%
• ADR: +4.8% to MYR373.74
• RevPAR: +7.2% to MYR244.04

Malaysia's hotels benefitted from several factors, including the Chinese New Year festival (28-29 January) and the Langkawi International Maritime and Aerospace Exhibition (21-25 March). The Easter calendar shift from March 2016 to April 2017 also helped performance growth. Demand increased 5.1% for the quarter, outpacing 2.9% supply growth.

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