STR: October occupancy drops

SINGAPORE, 26 November 2019: Hotels in the Asia Pacific region reported negative results in the three key performance metrics during October 2019, according to data from STR.

The key takeaways, based on US dollar constant currency for last October compared with October 2018, indicated occupancy levels in the Asia-Pacific declined by 0.9% to 71%.

The average daily rate (ADR) declined 2.4% to USD100.25, while revenue per available room (RevPAR) sank 3.4% to USD71.16.

Phuket

Phuket in Thailand saw occupancy improve by 5.5% to average 65.6% in October. Based on local currency, the average daily rate (ADR) declined 5.5% to THB2,813.53. Revenue per available room (RevPAR) also declined by a marginal 0.3% to THB1,846.25.

STR analysts note that group demand (+40.3%) drove the lift in occupancy, while demand in the transient segment fell 1.8%. Hoteliers may have reduced rates due to the appreciation of the baht and a more competitive marketplace with a 3.1% rise in room inventory from last October.

Tokyo

Occupancy declined by 2.8% to 87.9%, while average daily rate (ADR) improved 19.5% to JPY23,663.64. Revenue per available room (RevPAR) also improved by 16.2% to JPY20,808.51. The decline in occupancy was due to a surge in new supply (+6.9%) outpacing demand (+4.0%).

However, STR analysts note that performance was boosted by the Rugby World Cup 2019 (20 September through to 2 November). Tokyo saw a double-digit increase in ADR (+46.7%) and a subsequent jump in RevPAR (+44.3%) during the knockout stage of the event (19 October through 2 November).

STR’s sample comprises 67,000 hotels and 9.0 million hotel rooms around the world.

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