Asia Pacific Hotel Market Dips in March

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According to STR Global, hotels in the Asia Pacific region experienced negative performance results during March 2014 when reported in U.S. dollars.
   
The region's occupancy for March fell 0.7 percent to 69.2 percent; its average daily rate dropped 3.3 percent to US$120.63; and its revenue per available room decreased 3.9 percent to US$83.44.

"The region reported decreases in all performance metrics during March", said Elizabeth Winkle, managing director of STR Global. In February and March, Bangkok reported the lowest occupancies in 10 years. The prolonged political crisis is impacting the hospitality industry and wider economy.  Concerns remain as there is no resolution in sight and a stalemate between the opposing parties.  . After several difficult years due to oversupply and weak demand in many markets, India is finally showing signs of occupancy growth, which is positive and a trend we hope will continue". 

Highlights from key market performers for March 2014 in local currency (year-over-year comparisons):

• Mumbai, India, reported the largest occupancy increase, rising 8.1 percent to 69.2 percent.

• Bangkok, Thailand, fell 33.6 percent in occupancy to 53.7 percent, posting the largest decrease in that metric.

• Three markets achieved double-digit ADR increases: Osaka, Japan (+21.1 percent to JPY12,807.69); Jakarta, Indonesia (+11.2 percent to IDR1,180,455.54); and Tokyo, Japan (+11.0 percent to JPY16,662.35).

• Taipei, Taiwan, fell 11.7 percent in ADR to TWD6,452.85, reporting the largest decrease in that metric.

• Three markets experienced RevPAR increases of more than 10 percent: Osaka (+21.6 percent to JPY11,147.69); Tokyo (+14.3 percent to JPY14,866.72); and Jakarta (+10.8 percent to IDR837,431.97).

• Bangkok fell 36.1 percent to THB1,656,75, reporting the largest decrease in that metric.

Performances of key countries in March 2014* (all monetary units in local currency):



Highlights from key market performers for March 2014 in U.S. dollars (year-over-year comparisons):

• Auckland, New Zealand, increased 6.0 percent in ADR to US$133.44, reporting the largest increase in that metric. Seoul, South Korea, followed with a 5.9-percent increase to US$191.03.

• Bali, Indonesia (-13.0 percent to US$114.38), and Bangkok (-12.8 percent to US$94.72) reported the largest ADR decreases for the month.

• Osaka achieved the only double-digit RevPAR increase, rising 11.5 percent to US$108.42.

• Bangkok fell 42.1 percent to US$50.87, experiencing the largest decrease in that metric.

In the first quarter of the year, the Asia Pacific region's occupancy rose 0.7 percent to 66.0 percent; its ADR fell 3.6 percent to US$122.36; and its RevPAR decreased 2.9 percent to US$80.81.