Hotels in Asia Pacific Report Q3 2016 Increase in Occupancy; RevPAR Nearly Flat

According to data compiled by STR, hotels in the Asia Pacific region recorded mixed Q3 2016 results when reported in U.S. dollar constant currency.

Compared with Q3 2015, hotels in the Asia Pacific region reported an 1.9% increase in occupancy to 71.3%, a decline of 1.9% to US$97.34 in ADR while RevPAR was nearly flat (-0.1% to US$69.44).

Indonesia saw a 5.0% y-o-y increase in occupancy to 64.5%, but a 7.7% drop in ADR to IDR1,067,144.50 dragged RevPAR down 3.1% to IDR688,492.00. The country has experienced year-over-year occupancy increases for three straight quarters. However, ADR has fallen year over year in each of those quarters. According to STR analysts, a 4.9% year-to-date increase in supply and a heavy development pipeline have contributed to pricing competition and lower ADR in the country.

Maldives reported decreases across the three key performance metrics. Occupancy fell 6.5% to 61.3%, ADR was down 6.8% to MVR7,612.88 and RevPAR dropped 12.8% to MVR4,665.35. Occupancy has decreased year-on-year for nine straight quarters in the country. While total tourist arrivals were up 2.3% through August, the number of visitors from Maldives’ top feeder market (China) decreased by 11.5%, according to the country’s Ministry of Tourism.

Philippines experienced nearly flat occupancy (-0.4% to 65.7%). However, a 2.0% rise in ADR to PHP5,129.42 pushed RevPAR up 1.5% to PHP3,368.74. Through August, visitor arrivals to the country increased 12.6%, according to the Department of Tourism. Support for the hotel industry has been enough to outpace a 4.4% year-to-date increase in supply.

Performance of featured markets for Q3 2016 (local currency, year-on-year comparisons):

Melbourne, Australia, recorded increases in occupancy (+1.5% to 82.9%) and RevPAR (+0.9% to AUD146.91). ADR was down 0.6% to AUD177.23. The absolute occupancy level was the highest for any Q3 on record in Melbourne. According to Tourism Victoria data through June, international visitors (+12.6%) and international spending (+19.7%) grew by double digits in Melbourne. STR analysts note that similar figures through September would explain a 3.5% year-to-date increase in demand in the market.

Sanya, China, saw nearly flat occupancy (+0.3% to 60.4%) but double-digit declines in ADR (-10.7% to CNY627.54) and RevPAR (- 10.5% to CNY378.84). The absolute occupancy level was the highest for any third quarter on record in Sanya, but STR analysts attribute the overall decrease in performance to a 6.3% year-to-date supply increase in the market. While demand has kept pace, hoteliers have lowered rates in an attempt to capture market share.

Taipei, Taiwan, reported negative performance across the three metrics: occupancy (-7.1% to 61.2%), ADR (-3.4% to TWD5,934.27) and RevPAR (-10.2% to TWD3,634.30). The absolute occupancy level was the lowest for a third quarter on record in the market. STR analysts note that a steep decline in Chinese visitors to Taiwan, as reported by the Taiwan Tourism Bureau, has hurt performance in Taipei.

Asia Pacific results were mixed when compared with September 2015. The region reported a 2.6% increase in occupancy to 69.1%. ADR was down 1.8% to US$97.71. RevPAR increased 0.8% to US$67.54.

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