Room rates at hotels in Southeast Asia continued to climb in May 2013, offsetting declines in other parts of the Asia Pacific region.
According to the latest data from STR Global, Southeast Asia experienced a 6.4% jump in average daily rates (ADR) last month, to US$138.52. This made it the only Asia Pacific sub-region to record growth. In Central & South Asia rates dipped 0.1% to US$118.87, in Australasia they fell 0.3% to US$163.08, and in Northeast Asia ADR slumped 5.9% to US$104.38.
Occupancy levels experienced a similar trend, rising in Southeast Asia (+1.0% to 67.0%), but falling in Australasia (-1.1% to 69.3%) and Northeast Asia (-2.1% to 66.2%). Central & South Asia saw occupancy rise 1.7%, but only to a modest 54.2%.
Overall, the Asia Pacific region experienced a 2.5% drop in ADR, to US$119.69, while occupancy fell 1.3% to 65.9%. The region’s revenue per available room (revPAR) dropped 3.8% to US$78.82. This contributed to an overall 3.1% revPAR drop for the first five months of the year.
“Asia Pacific was the only global region to report negative revPAR growth year-to-date 2013, falling 3.1%,” said Elizabeth Winkle, managing director of STR Global.
“The revPAR decrease was mainly driven by Central/South Asia, where countries such as India are suffering from oversupply, and in Northeastern Asia, where countries such as China are reigning in spending. However, Southeast Asia is reporting strong growth, where markets such as Jakarta are posting an 18.2% growth in ADR year-to-date 2013. ADR growth is driving revPAR performance in this region,” she added.
Jakarta also performed well in May, with ADR rising 10.0% to US$107.43 – Asia Pacific’s third-strongest growth, following Taipei (+14.9% to US$207.96) and Auckland (+12.3% to US$112.49).
Tokyo saw the region’s strongest occupancy growth, rising 5.8% to a very healthy 85.4%. But this came at the expense of ADR, which slumped 15.6% to US$155.91.
In terms of revPAR, Auckland (+15.9% to US$82.23) experienced the region’s only double-digit growth in May 2013, but Seoul (-17.4% to US$130.61), Osaka (-13.5% to US$92.36) and Tokyo (-10.7% to US$133.22) all suffered a poor month.
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