According to data compiled by STR Global, hotels
in the Asia Pacific region experienced mixed results in the three
key performance metrics during December 2014 when reported in U.S.
The region’s occupancy for December grew
0.7% to 67.0%; ADR dropped 5.3% to US$114.13; and RevPAR decreased
4.7% to US$76.52.
Highlights from key market performers for
December 2014 in local currency (year-on-year comparisons):
- Two markets experienced double-digit occupancy increases:
Hanoi, Vietnam (+22.2% to 75.5%), and Bangkok, Thailand (+14.5% to 77.5%).
- Jakarta, Indonesia, reported the only double-digit
occupancy decrease, falling 10.7% to 61.7%.
- Osaka, Japan,
reported the only double-digit ADR increase, rising 22.4% to
- Hong Kong, China, experienced the largest ADR
decrease (-7.6% to HKD1,778.12).
- Osaka reported the highest
RevPAR increase (+29.6% to JPY13,355.15), followed by Hanoi
(+18.9% to VND1,810,917.84).
the Asia Pacific region also reported mixed results in the three
key performance metrics during 2014 when reported in U.S. dollars.
The region’s occupancy increased 0.5% to 68.6%. ADR was down
3.0% to US$115.67, while RevPAR fell 2.5% to US$79.39.
highlights from key market performers for year-end 2014 in U.S.
dollars (year-on-year comparisons) include:
China, reported the largest occupancy increase, rising 8.5% to
- Osaka reported the largest ADR increase (+8.1% to
- Osaka also experienced the largest RevPAR
increase (+11.0% to US$105.19).
Asia Pacific’s supply for
2014 was up 3.8%, which is the first time since 2008 that it
finished a year below 4.0%. Demand growth for the year was 4.3%,
in line with the last two years.
“As supply and demand
growth were practically on par, we have seen only a marginal
increase in occupancy of 0.5%,” said Elizabeth Winkle, managing
director of STR Global. “For the past three years Asia Pacific has
achieved occupancy levels of 68%.”
ADR has remained flat
(-0.1%) in constant U.S. dollars. As a result, Asia Pacific is
barely achieving positive RevPAR growth when looking at it in
constant currency, with a 0.4% increase.
Looking at the
four main regions within Asia Pacific, Central and Southern Asia
posted the highest occupancy growth at 2.8%, followed by Australia
and Oceania with an increase of 2.2%. South Eastern Asia was the
only region to post negative occupancy growth for 2014.
“South Eastern Asia’s performance was primarily driven by
Thailand’s political unrest and decline in leisure demand. We
started to see some signs of improvement during the last few
months of 2014,” Winkle said. “Bangkok posted a 14.5% increase in
occupancy during December 2014, which is a good sign overall.”
Despite the declines in occupancy, South Eastern Asia was the
only region to post an ADR increase (+3.2%) for 2014. Thailand achieved a 2.6% increase in ADR in Thai
Baht. Another contributor
to ADR growth in 2014 came from Indonesia, with a 6.9-pecent ADR growth in Indonesian rupiah terms.
Driven by a strong
performance from its luxury properties, French Polynesia posted
the highest ADR growth (+7.4%) in the region.
New Zealand hotels have a lot of opportunity in 2015. “Many eyes
will be on this country and its neighbor with the Cricket World
Cup, as well as the Asia Cup currently hosted by Australia,”
Other countries of note within Asia include:
- China, which achieved occupancy growth while also
experiencing declining ADR;
- Japan, with continued devaluation
of the yen, developed a 2.2% increase in rate as measured in local
- India, which experienced occupancy increases.
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