APAC Experiences Negative Growth, India ADRs Fall 2 per cent

By BW Hotelier HOTELS IN the Asia Pacific region experienced negative year-over-year results in the three key performance metrics during March 2015 when reported in U.S. dollars, according to data compiled by STR Global. The data showed that in comparison to March 2014, India had shown an increase in average occupancy of 1.4 per cent to 60.2 per cent. However, ADR had gone down by 2 per cent to INR 5,844.93 and RevPAR had decreased by 0.7 per cent to INR 3,518.83. The APAC region’s occupancy for March fell 0.3 per cent to 68.7 per cent. Affected by the continued devaluation of the Japanese yen, the region’s average daily rate dropped 5.9 per cent to US$111.16, and its revenue per available room decreased 6.2 per cent to US$76.34. Performance by country varied significantly on a local-currency basis: Thailand saw the largest increases in both occupancy (+23.4 per cent to 77.1 per cent) and RevPAR (+23.9 per cent to THB 2,862.64), while ADR (+0.4 per cent to THB3,712.70) remained almost flat. Thailand’s performance continues to improve in year-over-year comparisons as the country is further removed from last year’s coup d'-tat. New Zealand followed in RevPAR performance with a 23.0-percent increase to NZD143.41. New Zealand and Australia (+6.9 percent to AUD150.32) saw RevPAR growth associated with hosting the International Cricket Council Cricket World Cup. New Zealand (+15.3 percent to NZD169.84) and French Polynesia (+12.4 per cent to XPF37,583.38) each recorded double-digit ADR increases. Myanmar experienced the largest decreases in RevPAR (-30.3 per cent to MMK96,842.23) and occupancy (-26.4 per cent to 52.9 per cent). A 17.8-percent increase in supply led to the decreases in Myanmar. The steepest decline in ADR occurred in South Korea, where ADR dropped 11.2 per cent to KRW169,622.25. China reported negative results in each of the three key performance measurements. Occupancy was down 1.0 per cent to 64.6 per cent; ADR fell 2.6 percent to CNY559.74; and RevPAR decreased 3.5 per cent to CNY361.80. Decreased government spending in Hong Kong, China, as opposed to the ’Occupy Central’ movement, figures to have had a larger impact on performance in the country. Highlights from key market performers for March 2015 in local currency (year-over-year comparisons): Bangkok, Thailand, experienced the largest occupancy increase, up 42.9 per cent to 78.6 per cent. Sanya, China (+10.2 per cent to 65.2 per cent) was the only other market to post a double-digit occupancy increase for the month. Jakarta, Indonesia (-12.4 per cent to 61.0 per cent) and Bali, Indonesia (-10.7 per cent to 52.7 per cent) reported the largest occupancy decreases. Osaka, Japan, reported the largest ADR increase, rising 23.5 per cent to JPY15,192.50. Auckland, New Zealand, followed with a 23.0-per cent increase in ADR to NZD189.36. Seoul, South Korea, experienced the largest ADR decrease, down 11.4 per cent to KRW183,997.94. Bangkok (+54.9 per cent to THB2,622.17) reported the largest increase in RevPAR, followed by Osaka (+30.4 per cent to JPY14,133.95). Seoul (-16.9 per cent to KRW130,686.34) and Kuala Lumpur, Malaysia (-13.1 per cent to MYR272.45) experienced the largest RevPAR decreases.