Hotel rates in Asia have continued to decline, as China and India continue to impact the regional results.
According to the latest data from STR Global, the Asia Pacific region experienced a 5.3% drop in average daily rates (ADR) in August 2013, with a typical room night now costing US$119.88 – down from US$126.62 this time last year.
This was primarily driven by a slump in rates in Central & South Asia, including India, and Northeast Asia, which includes China. In Central & South Asia, ADR slumped 11.3% to US$104.69, while Northeast Asia experienced a 5.0% ADR drop, to US$107.42. ADR climbed in Southeast Asia however, up 0.7%, to US$138.10.
Overall, the Asia Pacific region’s hotel occupancy improved last month, rising 3.0% to 71.8%, but the slump in rates caused revenue per available room (revPAR) to decline 2.5% US$86.09.
“Occupancy was up for all sub-regions in Asia Pacific during August, while ADR is down,” said Elizabeth Winkle, managing director of STR Global. “Southeastern Asia continues to be the only sub-region to report positive results. Performance in markets in Malaysia and Indonesia was stronger in August due to the shift of Ramadan from July in 2012 to August in 2013.”
The timing of Ramadan had an especially positive impact on revPAR in Kuala Lumpur (+25.6% to US$93.49), and Jakarta (+17.7% to US$58.48), while Bangkok (+20.8% to US$78.25) also experienced double-digit growth. Delhi’s revPAR however, slumped 17.9% to US$44.84, marking the largest drop in the region.
For the first eight months of the year, the Asia Pacific region has now experienced a revPAR decline of 3.8%, to US$82.61 This was largely the result of a 3.5% drop in ADR, to US$122.69, while occupancy has dipped slightly, down 0.3% to 67.3%.
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