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Thu, 25 Jan 2018

Hotels in Asia Pacific Report 2017 Increase in ADR, OR and RevPAR

According to data compiled by STR, hotels in the Asia Pacific region reported positive results in the three key performance metrics during 2017.

In U.S. dollar constant currency, 2017 vs. 2016, hotels in Asia Pacific reported a 2.6% increase in Occupancy to 70.9%, ADR increased by 0.9% to US$100.57 and RevPAR was up 3.6% to US$71.31.

In local currency, 2017 vs. 2016, hotels in New Zealand  reported an 1.1% rise in Occupancy to 80.2%, ADR was up 10.7% to NZD189.58, and RevPAR jumped 11.9% to NZD152.06.

Huka Lodge New Zealand. Click to enlarge.

STR analysts note that 2017 was another year of sustained strong demand in New Zealand. Against the backdrop of increased international arrivals and a strong domestic economy, special events, such as the World Masters Games (April) and British & Irish Lions rugby tour (June), played a key role in driving performance. Additionally, another year with few new rooms added to the market (+0.3% supply growth) allowed the aforementioned special events and high absolute trading levels to continue boosting hotelier pricing power. All of the key markets in the country posted RevPAR growth for the year, specifically Queenstown (+15.3% to NZD190.92) and Auckland (+13.4% to NZD173.18).

In South Korea hotels reported a decrease of 7.4% in Occupancy to 65.3%, ADR was down 7.7% to KRW152,157.99, and RevPAR fell 14.5% to KRW99,298.30.

Ahead of its Winter Olympics host year, South Korea’s performance was greatly affected by 7.5% supply growth. STR analysts also attribute a slight demand decline (-0.4%) to political tension in the region and a significant decrease in international arrivals, which were down 22.7% according to the Korea Tourism Organization. The absolute occupancy and ADR levels were well below historical averages in South Korea.

Hotels in Vietnam reported an Occupancy increase of 5.9% to 71.3%, ADR was up 3.9% to VND2,791,367.00 and RevPAR increased by 10.0% to VND1,989,663.96.

Thanks to a third consecutive year with significant demand growth (+8.7%), the absolute occupancy level was well above historical averages in the country. Both of Vietnam’s key hotel markets, Hanoi (RevPAR: +13.2%) and Ho Chi Minh (Saigon) (RevPAR: +6.5%), registered solid growth for the year. The country’s average performance levels across weekdays and weekends indicated a solid mix of demand sources as well.

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