Hotels in APAC Report Q2 2017 Increase in ADR, OR and RevPAR; Vietnam’s RevPAR Up 13.7%

According to data compiled by STR, the Asia Pacific hotel industry reported positive results in the three key performance metrics during the second quarter of 2017.

In U.S. dollar constant currency, Q2 2017 vs. Q2 2016, the Asia Pacific region reported a 3.1% increase in Occupancy to 70.1%, an increase in ADR of 0.9% to US$97.39, and RevPAR jumped 4.1% to US$68.24.

In Australia, Occupancy fell by -0.2% to 72.7% while ADR was up 1.8% to AUD176.61, and RevPAR increased 1.6% to AUD128.43.

STR analysts note that Australia’s demand growth (+1.5%) was somewhat muted in comparison with previous quarters. That led to supply growth (+1.7%) factoring more prominently into overall results. On a 12-month moving average, supply growth has reached 1.7%, which is the highest level in the country since 1999. At the market level, the largest year-on-year supply increases came in Perth (+9.8%) and Brisbane (+5.0%). In terms of performance, Sydney led in absolute values with occupancy at 83.9% (+1.1%) and ADR at AUD213.91 (+6.3%), and STR analysts believe the recently re-opened Sydney International Convention Centre will further bolster the market’s demand, specifically in the MICE industry.

In China, Occupancy increased by 4.8% to 69.5%, ADR was up 0.6% to CNY522.78, and RevPAR increased by 5.5% to reach CNY363.23.

The absolute occupancy level was the highest for a Q2 in China since 2006. Demand grew 8.1% during what STR analysts categorize as a shoulder season in China which precedes the country’s peak tourism months (July and August). Demand growth was especially pronounced around the Labour Day holiday. Among key market overall performance in China, Hangzhou and Guangzhou led in RevPAR growth at +16.3% and +11.3%, respectively.

In Vietnam, Occupancy jumped 9.1% to 70.6%, ADR was up 4.2% to VND2,777,499.59 and RevPAR increased by 13.7% to hit VND1,961,341.99.

Performance in Vietnam continued to trend upward, and the absolute occupancy level was the highest for a Q2 in the country since 2007. Demand was up 10.9% for the quarter, mostly in the Transient segment (bookings of less than 10 rooms at once), indicating further growth in business travel and free independent travelers (FIT).

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