The rise of hotel room rates in the Asia Pacific region saw a marked slowdown in May 2012.
According to the latest data from STR Global, the region’s average occupancy level increased 2.3% to 65.5% percent, but average daily rates (ADR) increased just 1.0% to US$136. This marks a decline from the 3.8% growth seen in April and a considerable deceleration from the 13.5% growth experienced in May 2011.
The region’s average revenue per available room (revPAR) climbed 3.3% to US$89.
The ADR slowdown was largely driven by hotels in India. In New Delhi ADR slumped 28.4% to US$115 – the largest drop in the Asia Pacific region – closely followed by Mumbai, which saw its ADR fall 23.7% to US$136.
Elizabeth Randall, managing director of STR Global, noted; “The Indian markets remained under pressure as the markets had to cope with increasing supply and slowing local economic conditions.”
By contrast, Tokyo’s ADR increased 21.6% year-on-year to US$115, as it recovers ground lost following last year’s natural disasters, while rates in Phuket climbed 10.5% to US$104.
Tokyo also recorded the largest occupancy growth, rising 28.1% to 80.4%. But in Delhi, average occupancy levels slumped 14.3% to just 51.5%, as new hotel room supply diluted the market.
Asia Pacific’s ADR is still on the rise however, and has now climbed more than 15% in the last two years, from an average of US$118 in May 2009 to US$136 last month.
