Hotels in the Asia/Pacific region reported occupancy rose 4.6% to 67.5% in January, and despite a 2.8% ADR decline to $109.95, RevPAR increased 1.7% to $74.18.
LONDON—Hotels in the Asia Pacific region reported mixed results in the three key performance metrics, according to January 2018 data from STR.
U.S. dollar constant currency, January 2018 vs. January 2017
- Occupancy: +4.6% to 67.5%
- Average daily rate (ADR): -2.8% to US$109.95
- Revenue per available room (RevPAR): +1.7% to US$74.18
Local currency, January 2018 vs. January 2017
- Occupancy: +1.4% to 74.3%
- ADR: +0.1% to AUD195.25
- RevPAR: +1.5% to AUD145.07
The absolute levels in each metric were well above the country’s January historical averages. STR analysts attribute the performance to strong tourism and corporate business, which helped push demand growth to 2.7% year over year. At the same time, supply growth (+1.3%) remained steady. Less affected by new supply, regional markets (RevPAR: +5.6%) fared better than capitals (RevPAR: -0.4%). The major outlier was Darwin, with a 32.6% surge in RevPAR to AUD68.72. STR analysts believe that final construction and investment around liquefied natural gas (LNG) projects boosted performance in the Northern Territory capital.
- Occupancy: -1.4% to 53.9%
- ADR: -7.3% to IDR980,755.81
- RevPAR: -8.6% to IDR528,320.37
STR analysts attribute the overall negative performance to Bali and the aftereffects of the Mount Agung eruption late in 2017. For the second month in a row, Bali saw a double-digit decline in both occupancy (-20.7% to 53.4%) and RevPAR (-24.1% to IDR786,454.77). Additionally, a later Chinese New Year (January 2017 vs. February 2018) had a greater negative effect on the country’s overall performance.
- Occupancy: +9.7% to 62.9%
- ADR: -3.3% to CNY453.32
- RevPAR: +6.0% to CNY285.24
The absolute occupancy level and year-over-year increase were the highest in recent years in Mainland China. STR analysts note that the later Chinese New Year helped pushed demand year over year in Beijing. The market’s 16.8% rise in room nights sold was driven solely by the transient segment (less than 10 rooms sold to one group or individual). A 25.2% increase in transient demand, coupled with a 19.4% demand decline in the group segment (10 or more rooms booked at once), indicate a strong presence of corporate and free independent travelers.
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