RevPAR at hotels in Asia Pacific down 6.2% in March

According to data compiled by STR Global, hotels in the Asia Pacific region experienced negative year-on-year results in the three key performance metrics during March 2015 when reported in US dollars.

The region’s occupancy rates for March fell 0.3% to 68.7%, ADR dropped 5.9% to $ 111.16, and RevPAR decreased 6.2% to $ 76.34.

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

Thailand saw the largest increases in both occupancy (+23.4% to 77.1%) and RevPAR (+23.9% to THB 2,862.64), while ADR (+0.4% to THB 3,712.70) remained almost flat.

New Zealand followed in RevPAR performance with a 23.0% increase to NZ$ 143.41. New Zealand and Australia (+6.9% to A$ 150.32) saw RevPAR growth associated with hosting the International Cricket Council Cricket World Cup.

New Zealand (+15.3% to NZ$ 169.84) and French Polynesia (+12.4% to XPF37,583.38) each recorded double-digit ADR increases.

Myanmar experienced the largest decreases in RevPAR (-30.3% to MMK 96,842.23) and occupancy (-26.4% to 52.9%). A 17.8% increase in supply led to the decreases in Myanmar.

The steepest decline in ADR occurred in South Korea, where ADR dropped 11.2% to KRW 169,622.25.

China reported negative results in each of the three key performance measurements. Occupancy was down 1.0% to 64.6%; ADR fell 2.6% to CNY559.74; and RevPAR decreased 3.5% to CNY 361.80.

Highlights from key market performers for March 2015 in local currency (year-on-year comparisons):

Bangkok, Thailand, experienced the largest occupancy increase, up 42.9% to 78.6%. Sanya, China (+10.2% to 65.2%) was the only other market to post a double-digit occupancy increase for the month.

 Jakarta, Indonesia (-12.4% to 61.0%) and Bali, Indonesia (-10.7% to 52.7%) reported the largest occupancy decreases.

Osaka, Japan, reported the largest ADR increase, rising 23.5% to JPY 15,192.50. Auckland, New Zealand, followed with a 23.0% increase in ADR to NZD 189.36.

Seoul, South Korea, experienced the largest ADR decrease, down 11.4% to KRW 183,997.94.

Bangkok (+54.9% to THB 2,622.17) reported the largest increase in RevPAR, followed by Osaka (+30.4% to JPY 14,133.95).

Seoul (-16.9% to KRW 130,686.34) and Kuala Lumpur, Malaysia (-13.1% to MYR 272.45) experienced the largest RevPAR decreases.

553,895 hotel rooms under contract in Asia Pacific

According to the April 2015 STR Global Construction Pipeline Report, there are 2,403 hotels totalling 553,895 rooms Under Contract in the Asia Pacific region.

This represents a 7.3% increase in rooms Under Contract compared with April 2014, and a 1.7% year-on-year decrease in rooms under construction.

The region reported 252,317 rooms in 1,021 hotels under construction for the month.

Among the Chain Scale segments, the Upscale segment accounted for the largest portion of rooms Under Contract, 29.8% with 165,102 rooms. Two other segments each made up more than 15.0% of rooms Under Contract: Upper Upscale (24.9% with 137,926 rooms) and Luxury (15.3% with 84,703 rooms).

The Upscale segment accounted for the largest portion of rooms In Construction (30.1% with 75,971 rooms), followed by the Upper Upscale segment (26.9% with 67,826 rooms).

The Under Contract data includes projects in the In Construction, Final Planning and Planning stages but does not include projects in the unconfirmed stage.