Indian Hotels Recorded Increase in Performance in June: STR Report

By BW Hotelier ACCORDING TO data compiled by STR Global for June 2015, India recorded increases in each of the three key performance metrics: Occupancy (+7.4 per cent to 58.1 per cent), ADR (+0.2 per cent to INR 5,162.58) and RevPAR (+7.6 per cent to INR 2,997.27). According to STR Global analysts, India’s gross domestic product grew significantly during the first quarter of 2015. With a new government in power, the economy in India is showing more stability and a better investment climate. Hotels in the Asia Pacific region experienced nearly flat performance in the three key performance metrics when reported in U.S. dollar constant currency, according to June 2015 data compiled by STR Global. Compared to June 2014, the Asia Pacific region reported a 0.2 per cent decrease in occupancy to 66.2 per cent, a 0.1 per cent drop in average daily rate to USD 102.32 and a 0.3 per cent decline in revenue per available room to USD 67.70. Australia saw a 2.9 per cent increase in occupancy to 70.8 per cent. ADR in the country was up 0.4 per cent to AUD 171.21, and RevPAR rose 3.4 per cent to AUD 121.27. Year-to-date demand growth (+3.1 per cent) in Australia has been outpacing supply growth (+1.6 per cent). The country also shows a 7.8 per cent year-over-year increase in year-to-date group demand. Indonesia saw a double-digit decline in occupancy (-18.6 per cent to 58.7 per cent) and RevPAR (-14.9 per cent to IDR 639,437.92), but the country’s ADR was up 4.6 per cent to IDR 1,088,806.89. STR Global analysts cite government austerity measures as the main reason behind the occupancy drop in Indonesia. Markets such as Jakarta, Bandung and Bali saw demand drop and occupancy fall shortly after the austerity measures were put into practice during the fourth quarter of 2014. South Korea reported declines in the three key performance measurements: occupancy (-33.9 per cent to 49.3 per cent), ADR (-10.8 per cent to KRW 168,882.57) and RevPAR (-41.0 per cent to KRW 83,289.96). Tourism in the country is struggling to recover from the recent MERS outbreak. Beijing, China, experienced increases in the three key performance metrics. Occupancy in the market rose 3.6 per cent to 73.1 per cent; ADR was up 2.0 per cent to CNY 586.45; and RevPAR increased 5.7 per cent to CNY 428.43. Year-to-date demand growth (+5.9 per cent) has been outpacing supply growth (+2.2 per cent) in the market. Beijing also hosted SINO-Dental 2015 and The 11th China International Coal Equipment & Mine Technical Equipment Exhibition (CICEME 2015) during the month. Manila, Philippines, saw a 2.8 per cent decrease in occupancy to 61.6 per cent, but ADR was up 3.4% per cent to PHP 5,709.49, and RevPAR rose 0.5 per cent to PHP 3,514.71. Phuket, Thailand, posted double-digit increases in occupancy (+20.4 per cent to 58.2 per cent) and RevPAR (+14.1 per cent to THB 1,606.08). ADR in the market declined 5.3 per cent to THB 2,757.45.