STR Reports Asia Pacific Hotel Results for February 2015

According to data compiled by STR Global, hotels in the Asia Pacific region experienced negative year-on-year results in the three key performance metrics during February 2015 when reported in U.S. dollars.

The region’s occupancy for February fell 3.6% to 64.6%; ADR dropped 3.6% to US$117.64; and RevPAR decreased 7.0% to US$75.97.

Performance by country varied significantly on a local-currency basis:

China experienced a 9.2% decrease in RevPAR to CNY322.45 and an 8.3% decline in occupancy to 54.4%.

“Chinese New Year celebrations impacted hotel performance as demand declined by 4.7% in Chinese cities during the month,” said Elizabeth Winkle, managing director of STR Global. “Chengdu continues to see strong supply growth (+8.5%), putting pressure on performance, resulting in a decline of 18.2% in RevPAR. Hong Kong saw a RevPAR decline of 12.5%.”

Japan reported increases in both occupancy (+3.2% to 84.6%) and ADR (+10.6% to JPY13,050.26), resulting in a RevPAR gain of 14.2% to JPY11,042.41.

“Japan’s overall hotel performance grew positively, with RevPAR mainly driven by ADR increases in almost all markets across the country,” Winkle said.

Thailand saw the largest increases in occupancy (+26.7% to 86.0%) and RevPAR (+26.7 to THB3,635.33), but the country reported a slight decline in ADR (-0.1% to THB4,225.03).

Myanmar experienced the largest decrease in RevPAR (-22.4% to MMK128,930.16), driven predominantly by a 16.9-decline in occupancy to 67.8%. Winkle noted that a 12.1% year-on-year increase in supply has placed pressure on market occupancy levels.

Highlights from key market performers for February 2015 in local currency (year-on-year comparisons):

* Bangkok, Thailand, experienced the largest occupancy increase, up 53.8% to 86.0%.

* Kuala Lumpur, Malaysia (-22.4% to 59.6%) and Jakarta, Indonesia (-21.6% to 54.9%) reported the largest occupancy decreases.

* Osaka, Japan, reported the largest ADR increase, rising 25.9% to JPY13,629.92. Auckland, New Zealand, followed with a 15.3% increase in ADR to NZD189.10.

* Delhi-National Capital Region, India (-7.4% to INR7,080.85) and Hong Kong (-7.2% to HKD1,654.40) experienced the largest ADR decreases.

* Bangkok (+68.9% to THB3,024.23) reported the largest increase in RevPAR, followed by Osaka (+33.0% to JPY12,348.36).

* Kuala Lumpur experienced the largest decline in RevPAR, down 24.8% to MYR216.64.