Negative results in September for Asia Pacific hotels
Monday, 28 October 2013 01:04
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According to data compiled by STR Global, hotels in the Asia Pacific region experienced mostly negative results in the three key performance metrics during September 2013 when compared with September 2012 and reported in US dollars.
The region’s occupancy ended the month with a 0.7% increase to 68.5%, ADR dropped 5.9% to $ 118.94, and RevPAR was down 5.2% to $ 81.45.
Year-to-date September 2013, the region’s occupancy was down 0.3% to 67.5%, ADR dropped 3.8% to $ 121.99, and RevPAR decreased 4.1% to $ 82.29.
“Year-to-date performance is weakening and we see performance softening,” said STR Global Managing Director Elizabeth Winkle. “We have seen for the first time in three years that the equilibrium has shifted and supply is outpacing demand. Declining demand and increasing supply is negatively impacting all key performance indicators across the region with the exception of Southeastern Asia, where ADR continues to be positive.”
“We have seen a slowdown in Hong Kong and Singapore, two key and strong performing markets,” Winkle added. “This constriction is a reflection of the general economic slowdown in China, a large source market, and is more profoundly impacting Hong Kong. This time last year, Hong Kong narrowly beat Singapore in the RevPAR race, but in year-to-date September 2013 Singapore ($ 197.48) is leading Hong Kong ($ 184.62).”
Highlights from key market performers for September 2013 in local currency (year-on-year comparisons): Ho Chi Minh, Vietnam, led the occupancy increases, rising 12.9% to 67.9%. Mumbai, India, followed with an 11.1% increase to 65.7% in occupancy.
Seoul, South Korea, fell 8.4% to 75.4% in occupancy, posting the largest decrease in that metric.
Double digit increases
Three markets experienced double-digit ADR increases: Bali, Indonesia (+16.3% to IDR 1,643,823.35); Jakarta, Indonesia (+14.8% to IDR 1,143,707.82); and Osaka, Japan (+11.7% to JPY 11,107.52).
Mumbai fell 6.6% in ADR to INR 6,962.44 in ADR, reporting the largest decrease in that metric.
Three markets achieved RevPAR increases of more than 15%: Bali (+20.1% to IDR 1,229,952.30); Auckland, New Zealand (+17.1% to NZ$ 109.39); and Osaka (+15.4% to JPY 9,384.68).
Seoul fell 11.0% to KRW 157,187.36 in RevPAR, posting the largest decrease in that metric.
Highlights from key market performers for September in US dollars (year-on-year comparisons): Auckland reported the largest ADR increase, rising 7.1% to $ 118.25.
Mumbai (-21.7 to $ 110.51) and Delhi-NCR, India (-21.0% to $ 99.94), reported the largest ADR decreases for the month.
Auckland rose 16.5% to $ 90.32 in RevPAR, achieving the largest growth in the metric. Bangkok, Thailand, followed with a 10.1% increase to $ 70.27.
Delhi-NCR fell 18.3% to $ 59.58 in RevPAR, posting the largest decrease in that metric.
