Asia Pacific hotel sector world’s star performer in 2010

Tuesday, 1 February 2011 09:59 - - {{hitsCtrl.values.hits}}

According to data compiled by STR Global, hotels in the Asia Pacific region experienced increases in all three key performance metrics for year-end 2010 when reported in U.S. dollars.

In year-over-year measurements, the Asia Pacific region’s occupancy rose 8.9% to 66%, ADR increased 11.4% to US$132.80, and RevPAR jumped 21.3% to US$87.69.

“Asia Pacific was the star performer during 2010. It was the only region to report double-digit RevPAR growth at year-end,” said Elizabeth Randall, managing director of STR Global. “Demand came back strongly across the region due to better economic conditions and events such as the World Expo in Shanghai. Absolute RevPAR now lags 2008 peaks by only US$1.60.”

Highlights from key market performers for year-end 2010: (year-over-year comparisons, all currencies in U.S. dollars)

- Shanghai, China, experienced the largest occupancy increase, rising 27.7% to 63.4%, followed by Beijing, China, with a 21.5% increase to 63.1%.

- Perhaps not surprisingly, Bangkok, Thailand, posted the only occupancy decrease for the year, falling 2.7% to 53.3%.

- Four markets reported ADR increases of more than 20%: Sydney, Australia (+22.5% to US$165.95); Hong Kong, China (+22.3% to US$205.34); Shanghai (+21% to US$128.77); and Brisbane, Australia (20.5% to US$159.94).

- Shanghai jumped 54.6% in RevPAR to US$81.70, reporting the largest increase in that metric, followed by Hong Kong (+34.9% to US$166.87) and Sydney (+31.1% to US$138.60).

- Bangkok ended the year virtually flat in RevPAR with a 0.3% decrease to US$50.26.

Hotels in Asia Pacific - December 2010

Overall in December, the Asia Pacific region’s occupancy increased 2.4% to 63.9%, ADR was up 15% to US$146.87, and RevPAR jumped 17.8% to US$93.91.

Among the key markets, Beijing posted the largest occupancy increase, rising 13.2% to 58.3%, followed by Jakarta, Indonesia, with a 10.7% decrease to 70.5%. Shanghai fell 8.3% in occupancy to 44.9%, reporting the largest decrease in that metric.

Two markets reported ADR increases of more than 25%: Hong Kong (+27.3% to US$233.66) and Sydney (+26.5% to US$211.53).

Sydney jumped 29% in RevPAR to US$172.62, reporting the largest increase in that metric.

None of the region’s key markets experienced decreases in ADR or RevPAR.