Strong start to 2016 for Asia Pacific hotels

TD Guest Writer

Guest Writers are not employed, compensated or governed by TD, opinions and statements are from the specific writer directly

Region's occupancy, rates and revPAR all rise in January 2016
Asia Pacific’s hotels were, on average, 66.1% full in January 2016

The Asia Pacific hotel sector experienced rising rates and occupancy in January 2016.

According to the latest monthly data from STR Global, released on Thursday, the region’s occupancy climbed 3.5% to 66.1% last month, while average daily rate (ADR) edged up 0.4% to US$104.60. This pushed revenue per available room (revPAR) up 4.0% to US$69.15.

Strong performances were seen in Japan, where double-digit ADR growth (+10.3% to JPY14,084, or approx. US$126) drove a 10.5% increase in revPAR, to JPY10,442; and India, where occupancy growth (+4.7% to 66.1%) was the main contributor to a 5.1% revPAR increase, to INR4,082 (approx. US$59). India’s occupancy was the highest for any January in the country since 2008.

In Myanmar however, an 8.0% rise in ADR, to MMK203,850 (or approx. US$162), failed to offset an 11.9% drop in occupancy, which fell to just 49.9%. This caused revPAR to slide 4.8% to MMK101,719. STR Global noted that demand for hotel rooms in the country has now decreased for 17 consecutive months.

In terms of cities, Bangkok posted increases across all three performance metrics: occupancy (+4.5% to 80.6%), ADR (+3.1% to THB3,548, or approx. US$99) and revPAR (+7.8% to THB2,859), while in Ho Chi Minh City, rising ADR (+6.9% to VND2.70 million, or approx. US$120) offset falling occupancy to drive a 4.3% increase in revPAR, to VND1.93m. This was the highest revPAR on record for any January in HCMC.

Jakarta however, reported declining occupancy (-6.2% to 49.5%), ADR (-2.1% to IDR1.12m, or approx. US$83) and revPAR (-8.1% to IDR552,866).

The January results follow an almost flat year for the Asia Pacific hotel sector in 2015, when the region experienced a 0.1% increase in occupancy to 68.2%, a 0.5% dip in ADR to US$108.79, and a 0.4% decline in revPAR to US$74.25.

Klook.com

EXPERT OPINION

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