Positive Performance for Hotel Industry in Asia Pacific Region for Q3 2017
The Asia/Pacific region reported occupancy rose 3.3% to 73.5% in Q3 2017 compared to the same quarter in 2016. ADR increased 1.6% to $98.39 and RevPAR jumped 5% to $72.36.
Hotels in the Asia Pacific region reported positive results in the three key performance metrics during Q3 2017, according to data from STR.
U.S. dollar constant currency, Q3 2017 vs. Q3 2016
- Occupancy: +3.3% to 73.5%
- Average daily rate (ADR): +1.6% to US$98.39
- Revenue per available room (RevPAR): +5.0% to US$72.36
Local currency, Q3 2017 vs. Q3 2016
- Occupancy: +0.9% to 62.4%
- ADR: +2.7% to INR5,265.96
- RevPAR: +3.6% to INR3,287.73
Healthy supply growth (+3.0%) once again limited occupancy and rate growth in the country. In absolute terms, however, occupancy reached its highest level for a Q3 in India since 1996. ADR hit its highest Q3 absolute value since 2012. Additionally, STR analysts note that there were almost 8,000 less rooms in the development pipeline in India compared with last September.
- Occupancy: +0.7% to 75.9%
- ADR: +10.3% to NZD177.89
- RevPAR: +11.0% to NZD134.99
According to STR analysts, New Zealand remains one of the strongest performers in the region due to consistent demand and a lack of significant supply growth. Figures from the Ministry of Business, Innovation and Employment showed that the country welcomed a record-breaking 3.7 million international visitors through August, which was a 9.2% increase compared with the same eight months in 2016. Holiday arrivals were the main contributor to the growth in arrivals.
- Occupancy: -9.4% to 68.2%
- ADR: -5.7% to KRW151,106.19
- RevPAR: -14.6% to KRW103,094.24
ADR has decreased year over year for 36 consecutive months in South Korea (since September 2014) with massive supply growth playing a role in the equation. Since the beginning of 2015, the country has added more than 369,000 hotel rooms, and demand growth is not nearly keeping pace partly due to geopolitical tension in the region. STR analysts note that Group business has seen a noticeable decline, specifically with Chinese travelers. Given the volatility of the export balance with China as its biggest trade partner, South Korea is likely to fall back from its 17 million international arrivals in 2016, of which China accounted for nearly half. Through the first seven months of 2017, travelers from mainland China were almost halved in year-over-year comparisons, according to the Korea Tourism Organization.
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. For more information, please visit str.com.
Categories: Hotel Industry News