Asia Pacific hotels on positive path

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LONDON, 24 July 2018: Hotels in the Asia Pacific region posted growth across the three key performance metrics — occupancy, average daily rate and revenue per available room — during Q2 2018, according to data from STR.

Using US dollar constant currency calculations, comparing Q2 2018 with Q2 2017 across the Asia Pacific region occupancy improved 1% to an average 70.4%.

Average daily rate (ADR) improved 3.1% to USD105, while revenue per available room (RevPAR) improved 4.1% to US$73.95.

STR highlighted performances in specific markets in the region using local currency comparisons for Q2 in 2018 compared with 2017

Australia

Occupancy improved1.3% to 73.2%, ADR improved 1.5% to AUD178.57 and RevPAR improved 2.8% to AUD130.71.

The 73.2% absolute occupancy level was the highest for any Q2 on record in the country. That came even with 2.1% more room nights available compared with Q2 2017.

STR analysts point to the overall health of the Australian hotel industry in absorbing that new supply.

Gold Coast, host of the XXI Commonwealth Games in April, was the standout market with RevPAR up 24.2% to AUD138.38 for the quarter.

Performance growth was stronger outside of the capital markets as supply growth had a greater effect on RevPAR comparisons in Perth (-4.5% to AUD 112.99), Sydney (-2.1% to AUD174.70) and Hobart (-0.7% at AUD125.45). However, in absolute values, Sydney remained the top performer in the country.

Indonesia

Occupancy improved 2.5% to 60.6%, ADR: up 3.5% to IDR1,039,439.08 and RevPAR improved 6.1% to IDR629,692.74.

The 60.6% absolute occupancy level was the best for a Q2 in Indonesia since 2014.

STR analysts noted that performance increases were seen in Bali (+9.1%), Jakarta (+4.1%), Surabaya (+7.4%) and Yogyakarta (+8.7%). In June specifically, Bali’s RevPAR grew 15.9% to ID1,217,727.89 with demand lifted by Eid al-Fitr and the school holiday.

Singapore

Occupancy improved 2.9% to 81.3%, ADR plus 0.9% to SGD263.58 and RevPAR improved 3.8% to SGD214.39.

Even with significant supply growth (+4.5%), Singapore’s 81.3% occupancy level was the highest for a Q2 in the country since 2013. June was the strongest month of the quarter with RevPAR up 6.9% to SGD216.96. According to

STR analysts the country’s demand was boosted by the North Korea-US Summit, 12 June. Hotels in the Orchard Rd area specifically reported high ADR premiums.  Over three consecutive days there was double-digit RevPAR growth from 10 to 12 June.

STR provides clients from multiple market sectors with premium, global data benchmarking, analytics and marketplace insights. Founded in 1985, STR maintains a presence in 15 countries with a corporate North American headquarters in Hendersonville, Tennessee, and an international headquarters in London, England.