STR Reports May 2014 Performance of Hotels in Asia Pacific

According to data compiled by STR Global, hotels in the Asia Pacific region experienced positive results during May 2014 when reported in U.S. dollars.

The region’s occupancy during May rose 3.2% to 67.6%; ADR ended the month virtually flat with a 0.1% increase to US$115.10; and RevPAR increased 3.3% to US$77.80.

“One of the strongest performers in the region in terms of occupancy growth was the Philippines, rising 13.7% to 70.6% due to an increase in demand of 17.6%,” said Elizabeth Winkle, managing director of STR Global. “Indonesia reported positive rate growth in May, rising 10.7%. This is one of the highest increases in the region, primarily driven by Jakarta, which increased rates by 12.1%. Thailand continues to experience decreases in both occupancy (-12.6%) and RevPAR (-10.2%), while ADR continues to grow. Singapore and Hong Kong traditionally tend to follow each other in ADR growth. Year-to-date, Singapore is outpacing Hong Kong, as rates grew 2.9% and 1.6%, respectively.”

Highlights from key market performers for May 2014 in local currency (year-on-year comparisons):

- Three markets reported double-digit occupancy increases: Shanghai, China (+11.4% to 73.9%); Manila, Philippines (+10.2% to 71.7%); and Seoul, South Korea (+10.2% to 80.3%).

- Bangkok, Thailand, fell 18.1% in occupancy to 53.9%, posting the largest decrease in that metric.

- Osaka, Japan (+16.5% to JPY12,944.47), and Jakarta, Indonesia (+12.1% to IDR1,163,781.87), achieved the largest ADR growth.

- Delhi-NCR, India, experienced the largest ADR decline, falling 9.6% to INR5,719.28.

- Three markets reported RevPAR growth of more than 15.0%: Osaka (+19.6% to JPY10,975.97); Hong Kong (+16.7% to HK$1,507.91); and Shanghai (+16.4% to CNY465.43).

- Bangkok fell 16.8% in RevPAR to THB 1,609.07, reporting the largest decrease in that metric.

Highlights from key market performers for May 2014 in U.S. dollars (year-on-year comparisons):

- Osaka grew 15.8% in ADR to US$127.29, reporting the largest increase in that metric. Seoul followed with a 14.0% increase to US$207.43.

- Delhi-NCR (-13.7% to US$96.85) and Bali, Indonesia (-11.0% to US$120.96), posted the only double-digit ADR decreases.

- Five markets achieved RevPAR growth of more than 15.0%: Seoul (+25.6% to US$166.64); Osaka (+18.8% to US$107.93); Hong Kong (+16.9% to US$194.49); Shanghai (+16.6% to US$75.39); and Auckland, New Zealand (+15.3% to US$95.83).

- Bangkok fell 23.5% in RevPAR to US$48.95, reporting the largest decrease in that metric.