Compared with April 2015, the Asia Pacific region reported a 2.0% increase in occupancy to 70.5%. Average daily rate was up 1.5% to US$102.34. Revenue per available room rose 3.6% to US$72.13.
LONDON – Hotels in the Asia Pacific region recorded positive April 2016 results in the three key performance metrics when reported in U.S. dollar constant currency, according to data from STR.
Compared with April 2015, the Asia Pacific region reported a 2.0% increase in occupancy to 70.5%. Average daily rate was up 1.5% to US$102.34. Revenue per available room rose 3.6% to US$72.13.
Performance of featured countries for April 2016 (local currency, year-over-year comparisons):
Japan experienced relatively flat occupancy performance (-0.6% to 83.3%), but a 14.2% rise in ADR to JPY16,636.63 drove a 13.6% lift in RevPAR to JPY13,865.39. According to STR analysts, Japan’s performance was helped by relatively low supply growth (+1.4%) as well as a boost in leisure demand that can be linked to visa exemption policies and international arrivals.
Malaysia posted double-digit increases in occupancy (+10.5% to 63.7%) and RevPAR (+10.9% to MYR217.94). ADR in the country remained steady (+0.4% to MYR342.08). Malaysia turned in negative performance in 2015 due to a weakened economy and weakened tourism, according to STR analysts. Thus far in 2016, the country has shown signs of recovery thanks to a rebound in arrivals from China and India. The rebound has been helped by an increase in air connectivity between China and Malaysia as well as the easing of visa processes for China and India.
Maldives reported decreases across the three key performance metrics: occupancy (-6.1% to 62.3%), ADR (-12.2% to MVR11,133.03) and RevPAR (-17.5% to MVR6,936.19). STR analysts attribute the performance declines to a downturn in Chinese tourists. According to the country’s Ministry of Tourism, the number of tourist arrivals from China decreased 10.8% during the first quarter of the year. China is Maldives’ largest tourism feeder country in 2016.
South Korea saw steady occupancy (+0.6% to 71.7%) but decreases in ADR (-3.2% to KRW171,421.72) and RevPAR (-2.7% to KRW122,905.24). The country’s demand was up 10.6% for the month, slightly outpacing a 10.0% increase in supply. The rise in demand follows a pattern of performance recovery that began late in 2015. Although ADR dropped year over year for the 19th consecutive month, it was the lowest such decrease during that time period.
Performance of featured markets for April 2016 (local currency, year-over-year comparisons):
Beijing, China, saw occupancy climb 3.4% to 76.4% as well as double-digit increases in ADR (+10.7% to CNY628.51) and RevPAR (+14.4% to CNY479.92). The performance increases came as the market hosted a high number of conventions and conferences. In addition, supply growth remained muted at +0.8% year to date.
Hong Kong, China, reported increases across the three key performance metrics: occupancy (+4.1% to 87.0%), ADR (+3.8% to HKD1,503.72) and RevPAR (+8.0 to HKD1,307.69). The rise in overall performance can be credited to the shift of business travel from March to April due to an early Easter in other regions of the world. Comparable levels from 2015 were relatively low for the market as well.
Jakarta, Indonesia, reported mostly flat occupancy (-0.3% to IDR1,090,717.09) but double-digit drops in ADR (-11.1% to IDR1,090717.09) and RevPAR (-11.4% to IDR677,603.85). Year-to-date supply growth (+6.2%) continues to outweigh demand (+2.7%), and hoteliers have lowered rates in an attempt to counter the imbalance.
Manila, Philippines, posted increases across the key performance metrics. Occupancy in the market increased 8.9% to 73.8%; ADR was up 1.9% to PHP5,570.73; and RevPAR rose 10.9% to PHP4,110.59. According to STR analysts, a shift in business travel from March is the reason behind a 13.2% demand increase in the market.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
