Bangkok Hotels Report Lowest Occupancies in 10 Years; RevPAR in Osaka Up 21.1%

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

The region’s occupancy for March fell 0.7% to 69.2%; ADR dropped 3.3% to US$120.63; and RevPAR decreased 3.9% to US$83.44.

“The region reported decreases in all performance metrics during March,” said Elizabeth Winkle, managing director of STR Global. “In February and March, Bangkok reported the lowest occupancies in 10 years. The prolonged political crisis is impacting the hospitality industry and wider economy. Concerns remain as there is no resolution in sight and a stalemate between the opposing parties. After several difficult years due to oversupply and weak demand in many markets, India is finally showing signs of occupancy growth, which is positive and a trend we hope will continue.”

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

- Mumbai, India, reported the largest occupancy increase, rising 8.1% to 69.2%.

- Bangkok, Thailand, fell 33.6% in occupancy to 53.7%, posting the largest decrease in that metric.

- Three markets achieved double-digit ADR increases: Osaka, Japan (+21.1% to JPY12,807.69); Jakarta, Indonesia (+11.2% to IDR1,180,455.54); and Tokyo, Japan (+11.0% to JPY16,662.35).

- Taipei, Taiwan, fell 11.7% in ADR to TW$6,452.85, reporting the largest decrease in that metric.

- Three markets experienced RevPAR increases of more than 10%: Osaka (+21.6% to JPY11,147.69); Tokyo (+14.3% to JPY14,866.72); and Jakarta (+10.8% to IDR837,431.97).

- Bangkok fell 36.1% to THB1,656,75, reporting the largest decrease in that metric.

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

- Auckland, New Zealand, increased 6.0% in ADR to US$133.44, reporting the largest increase in that metric. Seoul, South Korea, followed with a 5.9-percent increase to US$191.03.

- Bali, Indonesia (-13.0% to US$114.38), and Bangkok (-12.8% to US$94.72) reported the largest ADR decreases for the month.

- Osaka achieved the only double-digit RevPAR increase, rising 11.5% to US$108.42.

- Bangkok fell 42.1% to US$50.87, experiencing the largest decrease in that metric.

In the first quarter of the year, the Asia Pacific region’s occupancy rose 0.7% to 66.0%; ADR fell 3.6% to US$122.36; and RevPAR decreased 2.9% to US$80.81.