Japan’s hotel sector suffered a slight decline in performance last month, as the country’s high-end hotels struggled.
According to the latest data from STR, a nationwide 1.8% dip in occupancy coupled with a near-flat average daily rate (ADR) led to a 1.7% decline in Japan’s revenue per available room (revPAR) in August, to JPY14,224 (approx. US$141).
But when separated by segment, it becomes clear that the problems are most acute at the higher end of the market. Japan’s luxury hotels experienced a 4.9% drop in revPAR last month, while upper upscale properties saw a 3.9% decline. Only midscale and economy (+1.1%) hotel reported rising revPAR.
Despite these declines, Japan’s hotel performance remains strong; actual occupancy for August was a healthy 85.5%, while the nationwide ADR was JPY16,629 (approx. US$165).
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