Hotels in Asia Pacific Report Q1 2016 Increase in OR and RevPAR

According to Q1 2016 data from STR, hotels in the Asia Pacific region recorded mostly positive results in the three key performance metrics when reported in U.S. dollar constant currency.

Compared with Q1 2015, hotels in the Asia Pacific region reported an 1.7% increase in occupancy to 66.6%, ADR remained nearly flat (-0.2% to US$105.04) while RevPAR rose 1.5% to US$69.93.

Performance of featured countries for Q1 2016 (local currency, year-on-year comparisons):

India reported positive results across the three key performance metrics: occupancy (+5.1% to 67.6%), ADR (+1.5% to INR6,197.11) and RevPAR (+6.7% to INR4,190.92). For the quarter, demand in India grew 8.9%, while supply increased 3.6%.

Thailand posted positive results in each of the three key performance measurements: occupancy (+4.6% to 83.6%), ADR (+1.4% to THB4,139.08) and RevPAR (+6.0% to THB3,459.55). STR analysts note that ADR for the quarter increased in local currency but dropped significantly in euros and U.S. dollars thanks to fluctuation in exchange rates. As a result, Thailand was viewed as a cheaper destination for foreign visitors. For the first time on record, absolute occupancy eclipsed 80.0% in each of the first three months of the year. The combination of occupancy and ADR resulted in the highest quarterly RevPAR STR has ever benchmarked in Thailand.

Vietnam recorded a 5.6% increase in occupancy to 68.7% and a 4.5% rise in ADR to VND2,887,891.33. As a result, RevPAR grew by double-digits (+10.3%) to VND1,984,418.28. According to the Vietnam National Administration of Tourism, the country saw a 13.5% year-on-year increase in arrivals from Russia during the quarter. STR analysts note that the country is viewed as a more secure destination compared with traditional destinations for Russians, and the Vietnamese government has eased visa policies. The country’s ADR was the highest on record for any quarter.

Singapore reported growth in occupancy (+1.9% to 83.0%) and RevPAR (+1.0% to SGD238.16). ADR remained nearly flat (-0.8% to SGD286.83). Aside from the days of the Asia Pacific Maritime 2016, March was a quiet month for Singapore. The country’s quarterly performance was saved by February (RevPAR +5.9%) and the Singapore Airshow (16-21 February).

Performance of featured markets for Q1 2016 (local currency, year-on-year comparisons):

Bali, Indonesia, saw a double-digit rise in occupancy (+12.2% to 59.8%), but a 7.1% drop in ADR to IDR1,432,042 limited RevPAR growth to +4.3% (IDR856,800.71).

Melbourne, Australia, reported nearly flat performance across the board: occupancy (+0.1% to 84.4%), ADR (-0.8% to AUD198.64) and RevPAR (-0.7% to AUD167.73). The stable performance in comparison to a solid Q1 2015 was helped by the Australian Open tennis championship in January and the Formula 1 Australian Grand Prix in March.

Sanya, China, experienced a 6.8% increase in occupancy to 75.3% but decreases in ADR (-6.8% to CNY1,098.49) and RevPAR (-0.5% to CNY827.57). Low rates led to the Sanya’s highest March occupancy (66.3%) since 2007.

Seoul, South Korea, reported decreases in the three key performance metrics: occupancy (-0.8% to 66.9%), ADR (-3.1% to KRW175,431.58) and RevPAR (-3.8% to KRW117,419.68). The country had experienced 13 straight months of year-on-year occupancy declines before a 1.5 increase in March. As a result, RevPAR grew for the first time since September 2014. STR analysts point to those improvements as a good sign as the entire country continues its recovery from the Middle East Respiratory Syndrome (MERS) outbreak last year. The Ministry of Culture, Sports & Tourism (MCST) launched “Visit Korea Year 2016-2018” during Q1 2016 to attract more foreign tourists.

Asia Pacific region performance for March 2016 (U.S. dollar constant currency, year-on-year comparisons):

Asia Pacific results were mostly positive when compared with March 2015. The region reported a 2.0% increase in occupancy to 69.6%. ADR remained nearly flat (-0.2% to US$102.94). RevPAR increased 1.8% to US$71.68.

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