LONDON, 25 June 2018: Hotels in the Asia Pacific region posted small gains in occupancy, average room rate and RevPar during May, according to data from STR.
Based on US dollar constant currency for May, year-to-date, hotels in the Asia Pacific region registered an average occupancy of 68.9%, an improvement of 0.8%.
Average daily rate (ADR) improved 1.1% to USD102.95, while revenue per available room (RevPAR closed in May at plus 1.9% to USS70.90
Occupancy improved 1.9% to 68.3%; ADR improved 1.6% to CNY514.84 and RevPAR improved 3.5% to CNY351.49
Mainland China has now experienced 13 consecutive months of year-over-year RevPAR growth. STR analysts credit the increase in May to leisure business, as growth was more noticeable in the transient segment, specifically on weekends.
Continued growth in demand (room nights sold) will be key as China ranks first in the in the Asia Pacific region in rooms under construction (207,030). That total represents almost 9% of the country’s existing supply.
Occupancy grew 0.6% to 83.2%; average daily rate (ADR) improved 0.1% to JPY14,788.12, while revenue per available room (RevPAR) improved 0.7% to JPY12,304.41.
The 83.2% occupancy level was the second highest for any May in STR’s Japan database. Most of the days of the month produced performance growth, but a significant year-over-year decline was reported the night prior to Constitutional Memorial Day (RevPAR: -51.2%).
Overall for the month, segmented data indicated strength in leisure business as growth was much more pronounced on weekends.
Occupancy improved 0.9% to 66.7%; ADR: improved 6.8% to VND2,815,312.49 and RevPAR climbed 7.8% to VND1,878,281.26.
Solid demand growth (+7.1%) was somewhat countered by significant growth in supply (+6.1%) – the largest uptick in new rooms in the country since March 2016. Regardless, RevPAR has grown year-over-year in Vietnam for 25 months in a row. STR analysts note that May growth occurred despite 7.4% decreases in occupancy and RevPAR in Hanoi. Performance growth will continue to be challenged by supply growth as Vietnam’s room construction total (21,985) represents more than 27% of the country’s existing supply.
STR’s sample comprises nearly 62,000 hotels and more than 8.2 million hotel rooms worldwide.