STR tracks April slide

SINGAPORE, 27 May 2019: Hotels in the Asia Pacific region reported mostly negative results in three performance areas during April

Measuring occupancy, average daily rate and REVPAR, STR’s data for April, based on USD constant currency, showed hotels in Asia Pacific reporting an occupancy decline of 2.2% to 71%.

The average daily rate improved by a marginal 0.2% to USD102.69, while revenue per available room (REVPAR) slipped 2% to USD72.88.

STR analysts noted that comparisons for the region were negative due to the performance strength of April 2018.

Based on local currency for April compared with the same month in 2018 STR highlighted the hotel performance in two Asian cities.

Beijing

Occupancy fell 2% to 78.2%, ADR improved 1.1% to CNY653.45 and RevPAR slipped 0.9% to CNY510.98.

The 2% decrease in occupancy was more a function of supply growth (+1.5%) than softened demand (-0.5%).

That slight dip in demand came as a result of less group business in the market as the room nights sold in the segment was down 1.5%.

Transient demand, on the other hand, rose 4.8%. STR analysts note that the rise in ADR was noteworthy considering the strength of the market’s performance last April.

Looking ahead, escalated trade tension with the US. could lead to more pressure on economic growth in China and weakened demand for its hospitality sector. 

Tokyo

Occupancy slipped 1.1% to 91.8%, ADR improved 6% to JPY22,231.71 and RevPAR grew 4.8% to JPY20,415.85.

STR analysts note that demand growth (+6.3%) in Tokyo remained strong, and absolute values in the metrics were significant. Occupancy was down year-over-year due to a jump in new inventory (+7.5%), which is projected to continue in the lead up to the Rugby World Cup 2019 and the 2020 Olympics.

As of April, Tokyo led all markets in the Asia Pacific region with 14,236 rooms under construction and 19,257 rooms in the overall development pipeline.