Hotels in Seoul and Phuket Report Largest RevPAR Decreases for November 2014

According to data compiled by STR Global, hotels in the Asia Pacific region experienced performance decreases during November 2014 when reported in U.S. dollars.

In November 2014, the region’s occupancy was down 0.4% to 72.2%; ADR fell 3.0% to US$115.70; and RevPAR decreased 3.4% to US$83.48.

“In U.S. dollar terms, Asia Pacific as a region is showing a decline on RevPAR rates. However, when looking at it on a constant-currency basis, the region has increased by 0.7%,” said Elizabeth Winkle, managing director of STR Global. “Australia has performed very well in 2014 and will end the year on a positive note, with strong performance in cities such as Melbourne and Sydney reporting year-to-date RevPAR growth of 5.8% and 4.6%, respectively (when reported in local currency).”

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

Hanoi, Vietnam (+16.0% to 82.9%), and Mumbai, India (+15.9% to 81.2%), reported the largest occupancy increases.

Jakarta, Indonesia, fell 9.0% in occupancy to 71.3%, reporting the largest decrease in that metric.

Osaka, Japan (+22.3% to JPY14,734.98), and Auckland, New Zealand (+11.2% to NZD167.85), recorded the only double-digit ADR increases.

Seoul, South Korea, reported the largest ADR decrease, falling 6.8% to KRW203,774.45.

Six markets experienced RevPAR increases of more than 10.0%: Osaka (+25.7% to JPY13,564.72); Mumbai (+17.0% to INR6,370.92); Auckland (+11.7% to NZD146.04); Taipei, Taiwan (+11.7% to TWD5,183.20); Shanghai, China (+11.2% to CNY530.82); and Hanoi (+11.1% to VND1,968,215.43).

Seoul (-8.0% to KRW165,287.86) and Phuket, Thailand (-7.4% to THB2,995.11) reported the largest RevPAR decreases.

“In the first 11 months, China was able to increase occupancy by 2% to 66.2% year to date; however, the market is still struggling with rate, resulting in a 1% RevPAR decline (when reported in local currency). Japan has remained flat from an occupancy perspective; however, rate still grows, due to ongoing government economic policies, most significantly the weakness of the Yen,” Winkle said. “As a result of last spring’s military action resulting in uncertainty in the minds of tourists, Thailand has seen demand declines of 11.3% November year to date, which has negatively impacted occupancy (-12.9%). In spite of declining demand and occupancy, the country grew rates by 2.9% (when reported in local currency).”

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

Auckland rose 7.2% to US$131.45 in ADR, reporting the largest increase in that metric.

Mumbai (+17.2% to US$102.40) and Shanghai (+11.1% to US$86.49) achieved the largest RevPAR increases.

Seoul recorded the largest decrease in ADR (-13.0% to US$179.46) and RevPAR (-14.1% to US$145.57).