Bangkok Hotels Record Largest OR and RevPAR Increases in Asia Pacific

According to data compiled by STR Global, hotels in the Asia Pacific region experienced mostly positive results in the three key performance metrics during May 2011 when reported in U.S. dollars.

In year-on-year measurements, the Asia Pacific region's occupancy rates ended the month virtually flat with a 0.2% decrease to 64%, ADR increased 13.5% to US$138.54, and RevPAR jumped 13.3% to US$88.72.

"Supply increases outpaced demand for the first five months of this year growing 2.6% and 2%, respectively," said Elizabeth Randall, managing director of STR Global. "Therefore the occupancy levels across the region are down slightly by 0.6%, year to date. Occupancy continued to improve across Central and South Asia, Southeastern Asia and Oceania. Bangkok came back strongly in May from governmental protests last year ... Shanghai hosted the World Expo last year, which depressed the performance for this May. Tokyo continued to report weak performances against last year following March events."

Highlights from key market performers for May 2011 in local currency (year-on-year comparisons):

- Bangkok, Thailand, achieved the largest occupancy increase, jumping 117% to 57.8%, followed by Phuket, Thailand, with a 26.2% increase to 51.5%.

- Two markets experienced double-digit occupancy decreases: Tokyo, Japan (-22.7% to 59.5%), and Shanghai, China (-21.8% to 58.5%).

- Hong Kong (+28.7% to HK$1818.80), and Bangkok (+15.2% to THB2908.14) posted the largest ADR increases for the month.

- Tokyo reported the largest decrease in ADR (-13.5% to JPY13180.80) and RevPAR (-33.1% to JPY7847.23).

- Bangkok achieved the largest RevPAR increase, rising 150% to THB1679.61, followed by Hong Kong with a 31.1% increase to HK$1456.23.

Highlights from key market performers for May 2011 in U.S. dollars (year-on-year comparisons):

- Brisbane, Australia, increased 46.5% in ADR to US$212.34, reporting the largest increase in that metric, followed by Sydney, Australia (+33.5% to US$188.07), and Melbourne, Australia (+30.7% to US$183.73).

- Shanghai ADR fell 7% to US$126.01, reporting the largest decrease in that metric.

- Three markets achieved RevPAR increases of more than 40%: Bangkok (+171.9% to US$55.25); Brisbane (+47.5% to US$172.15); and Melbourne (+40.2% to US$135.71).

- Shanghai (-27.3% to US$73.75) and Tokyo (-24.7% to US$97.04) experienced the largest RevPAR decreases.

The Americas

The Americas region ended May with a 4.5% increase in occupancy to 61.6%, ADR was up 4.7% to US$104.00, and RevPAR rose 9.4% for the month to US$64.09.

Among the key markets in the region, Santiago, Chile, achieved the largest monthly occupancy increase, rising 20.6% to 68.5%, followed by Mexico City, Mexico, with a 13.2% increase to 66.5%. Three markets reported occupancy decreases: New York, New York (-1.9% to 85.9%); Buenos Aires, Argentina (-1.8% to 60.5%); and San Juan, Puerto Rico (-1.6% to 73.2%).

Four markets experienced ADR increases of more than 15%: Sao Paulo, Brazil (+35.3% to US$149.04); Vancouver, Canada (+19.0% to US$165.61); San Francisco, California (+16.5% to US$157.06); and Montreal, Canada (+16.0% to US$145.94). None of the key markets in the Americas reported ADR decreases for the month.

Sao Paulo RevPAR jumped 38.8% to US$107.30, reporting the largest increase in that metric, followed by Santiago (+37.0% to US$104.13) and Vancouver (+30.3% to US$129.66). San Juan ended the month virtually flat in RevPAR with a 0.3% decrease to US$113.52.

 Europe

The European hotel industry posted positive results in year-on-year metrics when reported in U.S. dollars, euros and British pounds for May 2011.

"European hotels continue to bring in good results across the regions", said Elizabeth Randall. "Occupancy and ARR grew 5% and 8% respectively for May. Supply growth remains subdued across Europe at 1.1% for the first five months coupled with demand improving 5.3%, which helps hoteliers to build RevPAR. The year-to-date RevPAR of EUR61 is greater than the year-to-date results of the past two years, but still EUR6 below the YTD RevPAR achieved in 2008. We expect that, given economic conditions do not change for the worse, the recent solid recovery in occupancy and average room rates continues over coming months."

"Dusseldorf is the star performer this month, with high increases in occupancy and average room rates," Randall added. "Dusseldorf hosted the Eurovision Song Contest and Interpack trade fair which boosted the city's results."

Highlights from key market performers for May 2011 include (year-on-year comparisons, all currency in euros):

- Dusseldorf, Germany, achieved the largest occupancy increase, rising 34.1% to 72.6%, followed by Gothenburg, Sweden, with an 18.6% increase to 77.5%.

- Birmingham, United Kingdom, fell 12.1% in occupancy to 65.7%, reporting the largest decrease in that metric, followed by Istanbul, Turkey with a 6.8% decrease to 76.5%.

- Three markets posted ADR increases of more than 30%: Dusseldorf (+67.5% to EUR146.86); Istanbul, Turkey (+32.6% to EUR207.84); and Gothenburg (+31.4% to EUR125.02).

- Birmingham (-24.9% to EUR66.37) and Madrid, Spain (-11.8% to EUR92.77), reported the largest ADR decreases.

- Dusseldorf jumped 124.6% in RevPAR to EUR106.60, reporting the largest increase in that metric. Four other markets achieved RevPAR increases of more than 35%: Gothenburg (+55.8% to EUR96.85); Munich, Germany (+40.1% to EUR90.13); Cologne, Germany (+38.8% to EUR88.04); and Zurich, Switzerland (+36.9% to EUR163.84).

- Birmingham fell 34.0% in RevPAR to EUR43.62, reporting the largest decrease in that metric.

 Middle East / Africa

The Middle East / Africa region ended the month with a 12.5% decrease in occupancy to 53.7%, ADR rose 8.5% to US$151.96, and RevPAR ended the month with a 5.1% decrease to US$81.53.

"The political changes and demonstrations across parts of Northern Africa and the Middle East continue to influence hotel performances." said Ms. Randall. "The MENA markets reporting positive occupancy and average room rate increases for May are Jeddah, Makah, Medina, Riyadh and Dubai. Despite new supply still entering the Dubai market, May was the second consecutive month of moderate average rate increases since mid-2008."

Highlights among the region's key markets for May include (year-on-year comparisons, all currency in U.S. dollars):

- Among the key markets in the region, Abu Dhabi, United Arab Emirates, reported the largest occupancy increase, rising 17.4% to 64.2%, followed by Riyadh, Saudi Arabia, with an 8.4% increase to 73.5%.

- Cairo, Egypt, occupancy dropped 47.6% to 34.4%, reporting the largest decrease in that metric, followed by Amman, Jordan, with a 19.4% drop in occupancy to 57.2%.

- Two markets experienced ADR increases of more than 10%: Cape Town, South Africa (+17.6% to US$135.28), and Riyadh (+11.3% to US$284.93).

- Abu Dhabi posted the largest ADR decrease of the key markets, registering a 22.3% drop to US$145.27, followed by Amman (-11% to US$143.24) and Beirut, Lebanon (-10.9% to US$189.79).

- Two markets experienced double-digit RevPAR increases: Riyadh (+20.6% to US$209.43) and Cape Town (+17.8% to US$59.50).

- Four markets reported RevPAR decreases of more than 20%: Cairo (-49.3% to US$40.06); Amman (-28.3% to US$81.93); Beirut (-26.6% to US$108.07); and Muscat, Oman (-22% to US$79.14).

See recent travel news from: Travel News Asia, Paris, France, Airshow, Airbus, Boeing, ATR, STR, May 2011