Asia-Pacific hotel occupancy declines

LONDON, 27 August 2018: STR reported hotels in the Asia-Pacific region posted mixed results in July with a slight decline in occupancy across the region, but a marginal improvement in average daily rate.

Based on dollar constant currency comparing July 2018 with July last year, Asia-Pacific hotels reported a slight decline of 0.2% in occupancy.

The region’s average daily rate, however, improved 1.6% to USD104.16, while revenue per available room (RevPAR) improved 1.3% to USD76.65%.

Using local currency comparisons for the same period STR highlighted performance data in two Asian cities.

Shanghai
Occupancy declined by 2.7% to 76.5%, while average daily rate improved 0.5% to CNY606.69. RevPAR was down 2.2% to CNY463.94.

STR noted that supply (+3.5%) continued to outpace relatively flat demand (+0.7%) in the market. The absolute occupancy was the lowest for a July in Shanghai since 2014, while the ADR level was the highest for a July since 2011.

Bangkok
The Thai capital saw hotel occupancy drop 1.3% to 79.7%. But the available daily rate improved 4.5% to THB3,336.85, while RevPAR was up 3.1% to THB2,660.09

STR analysts noted that a slight decline in demand (-0.1%) came during a usually lower performance season in Bangkok. Supply (+1.2%) also added pressure on performance levels.