LONDON, 26 March 2018: Hotels in the Asia Pacific region reported lower occupancy but significant rate growth during February, according to data from STR.
Data released by STR was based on US dollar constant currency comparing February 2018 with February 2017.
Across the region Asia-Pacfic occupancy average fell slightly by 1.8% to 67.1%.
However, average daily rate (ADR) improved by 9.4% to US$118.17.
Revenue per available room (RevPAR) also increased 7.5% to US$79.25.
Based on local currency data
Hotels in Thailand saw occupancy improve 3.9% to 88.9%. Average daily rate (ADR) also increased by 14.7% to THB 4,619.38.
Revenue per available room (RevPAR) improved dramatically by 19.1% to THB 4,106.80.
February is historically one of the stronger performance months of the year in Thailand.
STR analysts attribute the added performance growth to the calendar shift of Chinese New Year from January in 2017 to February in 2018. On 16-17 February 2018, RevPAR increased 43.6% and 47.4%, respectively.
During February Singapore’s hotels saw occupancy improve 0.3% to 85.5%.
Average daily rate (ADR) also improved by 5.0% to SGD 286.41.
Revenue per available room (RevPAR) improved +5.3% to SGD 244.88.
STR analysts noted that the biannual Singapore Airshow and calendar shift of the Chinese New Year provided an obvious performance lift from 2017.
It is important to instead compare the first two months of 2018 with the same two months in 2016. When examining those time periods, 2018 occupancy and ADR fell 0.9% and 8.0%, respectively.
The 2016 period for Chinese New Year overlapped with the airshow dates, so the performance levels were naturally higher. Airshow dates in February 2018 specifically produced a double-digit decline from the Airshow dates in 2016 (RevPAR: -11.2%), but peaking supply growth (+13.3% in 2018) also factored heavily in that equation.
Hotels in South Korea saw occupancy declined 13.1% to 58.2%.
Average daily rate (ADR) improved 3.3% to KRW 153,177.72.
Revenue per available room (RevPAR) declined 10.2% to KRW 89,196.00.
According to STR analysts, the Winter Olympics in Pyeongchang failed to produce demand or booking levels capable of meeting the significant supply growth (+11.6%) in the country. Geopolitical concerns in the region also continued to play a role in South Korea’s overall performance decline. The Olympics did, however, help push the first year-over-year ADR increase for the country since September 2014.