Asia Pacific hotels report mixed March and 1Q performance

Thursday, 28 April 2011 14:34 - - {{hitsCtrl.values.hits}}

According to data compiled by STR Global, hotels in the Asia Pacific region experienced mostly positive results in the three key performance metrics during March 2011.

In year-on-year measurements, the Asia Pacific region's occupancy fell 3.5% to 66.5%, the ADR increased 13.8% to US$144.04, and RevPAR jumped 9.9% to US$95.77.

In the first quarter of 2011, the Asia Pacific region was virtually flat in occupancy, reporting a 0.2% decrease to 64%. ADR was up 13.1% to US$143.81, and RevPAR increased 12.8% to US$92.03.

"This month we saw the impact of the earthquake, tsunami and its aftermaths on the Japanese hotel market," said Elizabeth Randall, managing director of STR Global. "Across Japan, occupancy declined 21% for the month in addition to a slight drop in average rate. Cities in the southern parts of Japan performed better than cities closer to the affected north-eastern area as people moved farther away from the threat of radiation exposure. Tokyo's occupancy moved from 83% in March 2010 to 55% this year, and its average room rate (-4%) dropped slightly more than the national average (-0.1%) to JPY14,181. Osaka's occupancy, in comparison, dropped only slightly by 2.8% to 81%, and its average rate increased 10% to JPY12,083. In the city of Sendai, where we usually track the performance of nine hotels, three properties closed and the March performance of six reporting hotels showed a decline of 23% in RevPAR."

"Asia Pacific overall finished the first quarter 2011 with a level occupancy performance and increases in average room rate to gain 13% in RevPAR," Randall continued. "As we saw a strong demand recovery in 2010, we expect to see occupancy performance level out and average room rates grow. Asia Pacific achieved the highest occupancy (64%) of the four world regions in the first quarter."

Highlights from key market performers for March 2011 in local currency (year-on-year comparisons):

- Bangkok, Thailand, increased 10% in occupancy to 67.8%, reporting the largest increase in that metric, followed by Jakarta, Indonesia, with a 6% increase to 71.9%.

- Five markets experienced double-digit ADR increases: Hong Kong, China (+28.2% to HK$2062.02); Jakarta (+14.5% to IDR809282.30); Bali (+12.8% to IDR1092414.91); Beijing, China (+10.3% to CNY698.32); and Seoul, South Korea (+10% to KRW193755.16).

- Hong Kong jumped 33.2% in RevPAR to HK$1790.77, followed by Jakarta with a 21.4% increase to IDR582069.77).

Highlights from key market performers for March 2011 (year-on-year comparisons, all currencies in U.S. dollars):

- Hong Kong achieved the largest ADR increase, rising 27.8% to US$264.74.

- New Delhi, India, ended the week virtually flat with a 0.8% ADR decrease to US$199.10, reporting the only decrease in that metric.

- Four markets experienced RevPAR increases of more than 20%: Hong Kong (+32.8% to US$229.92); Brisbane, Australia (+27.8% to US$167.49); Jakarta (+26.2% to US$66.53); and Sydney (+25% to US$177.48).