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%
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.
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
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.