STR Reports September 2014 Asia Pacific Hotel Performance; Bangkok RevPAR Down 11%

According to data compiled by STR Global, hotels in the Asia Pacific region experienced mixed results during September 2014 when reported in U.S. dollars.

In September 2014, the region’s occupancy rose 0.9% to 69.2%; ADR fell 2.2% to US$112.31; and RevPAR was down 1.3% to US$77.67.

Year-to-date September 2014 when reported in U.S. dollars, the Asia Pacific region’s occupancy rose 0.8% to 68.1%; ADR fell 2.4% to US$116.15; and RevPAR decreased 1.6% to US$79.07.

“Southeast Asia was the only sub-region to see occupancy losses (-3.9%) in September, driven by declines in Thailand, Vietnam and Indonesia,” said Elizabeth Winkle, managing director of STR Global. “On the other hand, Central and South Asia reported occupancy growth this month, primarily driven by India. Confidence in the newly elected government and an upgraded economic outlook have been reasons cited for performance increases.”

Highlights from key market performers for September 2014 in local currency (year-on-year comparisons):

Taipei, Taiwan (+9.4% to 66.3%), and Shanghai, China (+8.5% to 74.2%), reported the largest occupancy increases.

Bangkok, Thailand, fell 11.6% to 64.5%, recording the largest decrease in that metric.

Osaka, Japan, jumped 15.2% to JPY12,739.69 in ADR, achieving the largest increase in that metric.

Delhi-NCR, India, reported the largest ADR decrease, falling 4.2% to INR5,940.01.

Four markets experienced double-digit RevPAR increases: Osaka (+22.3% to JPY11,465.29); Taipei (+14.6% to TWD4,262.24); Shanghai (+13.3% to CNY471.64); and Mumbai, India (+10.5% to INR4,999.66).

Bangkok reported the only double-digit RevPAR decrease, falling 11.0% to THB1,925.54.

Highlights from key market performers for September 2014 in U.S. dollars (year-on-year comparisons):

Mumbai (+4.3% to US$114.38) and Shanghai (+4.3% to US$103.20) recorded the largest ADR growth in September.

Bali, Indonesia, reported the largest ADR decrease, falling 5.6% to US$131.99. Tokyo, Japan, followed with a 5.4-percent decrease to US$147.23.

Three markets achieved double-digit RevPAR increases: Shanghai (+13.2% to US$76.61); Mumbai (+13.0% to US$81.18); and Taipei (+11.4% to US$139.88).

Bangkok experienced the only double-digit RevPAR decrease, falling 13.8% to US$59.39.

“From a year-to-date perspective, at this time last year supply growth in Asia Pacific was outpacing demand. The equilibrium has shifted and this year demand is outpacing supply,” said Ms. Winkle. “Since the recovery in 2010, demand outpacing supply has become the usual trend for the region.”