STR Reports Asia Pacific Hotel Results for January 2015; Bangkok RevPAR Up 35.5%

According to data compiled by STR Global, hotels in the Asia Pacific region experienced mixed year-on-year results in the three key performance metrics during January 2015 when reported in U.S. dollars.

Hotel occupancy rates in the region grew 4.9% to 64.7% in January 2015; ADR dropped 7.2% to US$111.50; and RevPAR decreased 2.7% to US$72.18.

“In U.S. dollars, the Asia Pacific region is showing a decline in RevPAR rates. However, the region increased 2.0% on a constant-currency basis,” said Elizabeth Winkle, managing director of STR Global. “New Zealand reported the highest RevPAR increase in the region (14.6% to NZ$115.34), benefitting in part from the Asian Football Confederation’s Asian Cup recently held in neighboring Australia.”

Japan reported increases in both occupancy (3.1% to 74.1%) and ADR (8.6% to JPY12,935.67), resulting in a RevPAR gain of 12.0% to JPY9,591.64 to continue the country’s strong performance during 2014.

Despite an ADR decrease of 5.1%, China still managed to post a RevPAR gain (3.7%) as a result of a 9.2% increase in occupancy.

“With Chinese New Year celebrations commencing in mid-February, we expect to see a dip in most key performance measures in the next month,” Winkle said. “India increased in all key performance measures, predominantly driven by occupancy (3.6%). Rate growth remained elusive in the country during 2014 with a lot of room for improvement.”

Highlights from key market performers for January 2015 in local currency (year-on-year comparisons):

Six markets experienced double-digit occupancy increases, including: Bangkok, Thailand (+31.5% to 76.4%); Hanoi, Vietnam (+26.0% to 76.6%); Shanghai, China (+18.3% to 67.1%); Beijing, China (+13.6% to 62.9%); Ho Chi Minh City, Vietnam (+10.8% to 72.4%); and Mumbai, India (+10.6% to 81.3%).

- Bali, Indonesia, reported the only double-digit occupancy decrease, falling 14.7% to 55.8%.

- Osaka, Japan, reported the only double-digit ADR increase, rising 19.1% to JPY13,194.63.

- Sanya, China, experienced the largest ADR decrease (-9.7% to CNY1,028.17).

- Nine key markets posted double-digit RevPAR increases in local currency, led by Bangkok (+35.5% to THB2,638.86); Osaka (+24.3% to JPY10,875.51); and Hanoi (+24.0% to VND1,820,442.68).