Main Photo: The Rendering of the JW Marriott Marquis Hotel Shanghai Pudong
Date: December 2019
Location: Asia Pacific
Name: STR Report
What did they Say: Asia/Pacific hotel occupancy fell 0.9% to 71% in October. ADR declined 2.4% to $100.25 and RevPAR dropped 3.4% to $71.16.
Phuket room rates down due to supply growth, appreciation of the Baht
Tokyo performance boosted by Rugby World Cup
Hotels in the Asia Pacific region reported negative results in the three key performance metrics during October 2019, according to data from STR.
• Occupancy: -0.9% to 71%
• Average daily rate (ADR): -2.4% to US$100.25
• Revenue per available room (RevPAR): -3.4% to US$71.16
• Occupancy: +5.5% to 65.6%
• Average daily rate (ADR): -5.5% to THB2,813.53
• Revenue per available room (RevPAR): -0.3% to THB1,846.25
STR analysts note that group demand (+40.3%) drove the lift in occupancy, while demand in the transient segment fell 1.8%. Hoteliers may have lowered rates due to the appreciation of the Baht and a more competitive marketplace with a 3.1% rise in room inventory from last October.
• Occupancy: -2.8% to 87.9%
• Average daily rate (ADR): +19.5% to JPY23,663.64
• Revenue per available room (RevPAR): +16.2% to JPY20,808.51
The decline in occupancy was due to a surge in new supply (+6.9%) outpacing demand (+4.0%). However, STR analysts note that performance was boosted by the Rugby World Cup 2019 (20 September through 2 November). Tokyo saw a double-digit increase in ADR (+46.7%) and a subsequent jump in RevPAR (+44.3%) during the knockout stage of the event (19 October through 2 November).
Who: STR provides clients from multiple market sectors with premium, global data benchmarking, analytics and marketplace insights.
Founded in 1985, STR maintains a presence in 10 countries around the world with a corporate North American headquarters in Hendersonville, Tennessee, and an international headquarters in London, England.
THPT Comment: We at THPT are getting mixed messages with regards to Asia-Pac, especially Singapore…some parties are telling us “really hot market”, little available at the top-end, don’t expect more than 2.5% or 3% yield, yet others are concurring with this STR report.
First Seen: Hospitality Trends
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