According to data compiled by STR, hotels in the
Asia Pacific region posted growth across the three key performance
metrics in May 2018.
In U.S. dollar constant currency, hotels in the
Asia Pacific region reported a May 2018 increase in
Occupancy of 0.8% to 68.9%, growth of 1.1% in ADR to US$102.95 and
a RevPAR increase of 1.9% to US$70.90, when compared to May 2017.
In local currency, May 2018 vs. May 2017, hotels
in Mainland China reported an 1.9% growth in Occupancy to 68.3, a
rise in ADR of 1.6% to CNY514.84 and an increase in RevPAR: 3.5%
Mainland China has now experienced 13
consecutive months of year-on-year RevPAR growth. STR analysts
credit the increase in May to leisure business as growth was more
noticeable in the transient segment, specifically on weekends.
Continued growth in demand (room nights sold) will be key as China
ranks first in the in the Asia Pacific region in rooms under
construction (207,030). That total represents almost 9% of the
countryís existing supply.
In Japan, Occupancy rose 0.6% to 83.2%, ADR
smudged 0.1% higher to to JPY14,788.12 and RevPAR was up 0.7% to JPY12,304.41.
The 83.2% occupancy level was the second-highest
for any May in STRís Japan database. Most of the days of the month
produced performance growth, but a significant year-on-year
decline was reported the night prior to Constitutional Memorial
Day (RevPAR: -51.2%). Overall for the month, segmented data
indicated strength in leisure business as growth was much more
pronounced on weekends.
Hotels in Vietnam reported a May 2018 rise in Occupancy
of 0.9% to 66.7%, ADR grew 6.8% to
VND2,815,312.49 and RevPAR jumped 7.8% to VND1,878,281.26.
demand growth (+7.1%) was somewhat countered by significant growth
in supply (+6.1%) Ė the largest uptick in new rooms in the country
since March 2016. Regardless, RevPAR has grown year-on-year in
Vietnam for 25 months in a row. STR analysts note that May growth
occurred despite 7.4% decreases in occupancy and RevPAR in Hanoi.
Performance growth will continue to be challenged by supply growth
as Vietnamís room construction total (21,985) represents more than
27% of the countryís existing supply.