South Korean hotel sector rebounds strongly
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Hotels in South Korea appear to have fully recovered from the downturn caused by the MERS outbreak in summer 2015.
According to the latest data from STR, South Korean hotel occupancy surged 41.6% to a healthy 76.1% in July 2016. This not only marks a sharp upturn compared to the MERS-affected figures of last year, but it also represents the highest July occupancy level in South Korea since 2013.
Year-to-date in 2016, South Korea’s occupancy is up 11.0% compared with the first seven months of 2015.
Hotel rates have dipped slightly, however. In July 2016, the average nightly rate at a hotel in South Korea was KRW166,423.59 (approx. US$149), 2.4% lower than the same month last year.
The country’s absolute ADR however, remains significantly higher than the Asia Pacific average of US$96.62 recorded in July. For the first seven months of the year, South Korea’s ADR has now fallen 4.9%.
The country’s revPAR (revenue per available room) jumped 38.1% to KRW126,633.06 in July, reflecting the rebound in occupancy.
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