Hotels in the Asia Pacific region will continue to see rising revenue per available room (revPAR) in 2012, according to the latest forecast from STR Global.
Focusing on four key regional markets – Beijing, Hong Kong, Singapore and Sydney – STR Global has forecast that revPAR growth will be driven by increasing average daily rate (ADR), following strong occupancy growth in Singapore, Hong Kong and Sydney during 2011. These markets posted occupancy of more than 80% for the year, while Beijing achieved just less than 70%.
Supply is expected to grow between 1.1% and 2.5% across the four cities, with demand predicted to increase between 1.7% and 3.8%. Following strong demand growth during 2010 (+22.8%) and 2011 (6.2%), Singapore is expected to see demand increase at a slower rate than supply during 2012. This imbalance is forecast to lead to an occupancy decrease of 0.6% for the year.
In Beijing, occupancy and ADR growth (+4.5% to CNY678 (US$107)) will support revPAR growth between 5.0% and 7.0% in 2012. Hong Kong is predicted to see the largest supply increase (+2.5%) of the four cities, but this is expected to be offset by a 3.0% demand increase, driving growth in occupancy, ADR and revPAR. Sydney is forecasted to see the smallest supply increase, resulting in moderate occupancy (+1.2%) and ADR (+2.6%) growth.
For the 12 months to January 2012, Hong Kong’s hotel occupancy reached 84.5%, followed by Singapore (84.1%), Sydney (82.1%) and Beijing (67.9%), where 12-month occupancy levels were similar to those recorded during the pre-Olympics period in March 2008 (67.9%).
“Our forecast indicates that 2012 will be another positive year with demand growing in Beijing (+3.8%), Hong Kong (+3.0%), Singapore (+1.7%) and Sydney (+2.3%). This, coupled with limited new supply, will benefit revPAR”, said Elizabeth Randall, Managing Director at STR Global. “With high demand and corresponding occupancy levels, we estimate average room rates to pick up.”
