STR: Asia Pacific hotels strong results

LONDON, 30 January 2018: Hotels in the Asia Pacific region reported positive results in occupancy and revenue during 2017, according to data from STR.

Based on dollar constant currency comparisons, between 2017 and 2016 for the Asia Pacific region, hotels on average saw occupancy improve 2.6% to achieve 70.9% across the region.

Average daily rate (ADR) improved 0.9% to USD100.57

Revenue per available room (RevPAR) improved 3.6% to USD71.31.

Drilling down to country markets, STR data showed local currency performance 2017 compared with 2016

New Zealand

Occupancy improved 1.1% to 80.2%.

Average daily rate (ADR) improved 10.7% to NZD189.58.

Revenue per available room (RevPAR) increased 11.9% to NZD152.06.

STR analysts note that 2017 was another year of sustained strong demand in New Zealand. Against the backdrop of increased international arrivals and a strong domestic economy, special events, such as the World Masters Games (April) and British & Irish Lions rugby tour (June), played a key role in driving performance. Additionally, another year with few new rooms added to the market (+0.3% supply growth) allowed the aforementioned special events and high absolute trading levels to continue boosting hotelier pricing power. All of the key markets in the country posted RevPAR growth for the year, specifically Queenstown (+15.3% to NZD190.92) and Auckland (+13.4% to NZD173.18).

South Korea

Occupancy declined 7.4% to 65.3%.

Average daily rate (ADR) also declined 7.7% to KRW152,157.99.

Revenue per available room (RevPAR) was down 14.5% to KRW99,298.30.

Ahead of its Winter Olympics host year, South Korea’s performance was greatly affected by 7.5% supply growth. STR analysts also attribute a slight demand decline (-0.4%) to political tension in the region and a significant decrease in international arrivals, which were down 22.7% according to the Korea Tourism Organization. The absolute occupancy and ADR levels were well below historical averages in South Korea.

Vietnam

Occupancy grew 5.9% to 71.3%.

Average daily rate (ADR) improved 3.9% to VND2,791,367.00.

Revenue per available room (RevPAR) increased 10.0% to VND1,989,663.96.

Thanks to a third consecutive year with significant demand growth (+8.7%), the absolute occupancy level was well above historical averages in the country. Both of Vietnam’s key hotel markets, Hanoi (RevPAR: +13.2%) and Ho Chi Minh City (RevPAR: +6.5%), registered solid growth for the year. The country’s average performance levels across weekdays and weekends indicated a solid mix of demand sources as well.

(Source STR)