Mumbai Hotels No. 2 in Asia Pacific Occupancy, RevPAR Rankings for Nov. 2014

NOVEMBER 2014, the latest month for which the widely quoted benchmarking service STR Global has just released data, was particularly good for Mumbai, which saw the second highest average hotel occupancy rate (81.2 per cent, up by 15.9 per cent year over year) in the increasingly busy Asia Pacific region, which is dominated by heavy hitters Beijing, Shanghai, Seoul, Tokyo, Osaka, Hong Kong, Jakarta, Melbourne and Sydney. Mumbai hotels also notched up the second highest RevPAR (revenue per available room), the industry yardstick for a hotel's financial performance. The citywide average RevPAR, reported to be Rs 6,370.92, was up by 17 per cent year over year. The regional average, incidentally, was 72.2 per cent occupancy (down by 0.4 per cent) and a RevPAR of US$83.48 (a dip of 3.4 per cent). Mumbai hotels therefore performed way above the Asia Pacific average. Interestingly, the India's nationwide averages, according to STR Global, were also significantly lower than Mumbai's: 67.7 per cent occupancy (up by 6.9 per cent); average daily rate of Rs 6,137.44 (down by 2.7 per cent); and RevPAR of Rs 4,116.76 (up by 4 per cent). Hanoi, Vietnam, recorded the highest occupancy increases (82.9 per cent, up by 16 per cent year over year), whereas Jakarta fell 9 per cent in occupancy to 71.3 per cent, reporting the largest decrease in that metric. Besides Mumbai, five markets experienced double-digit RevPAR increases. These were: Osaka (+25.7 per cent to JPY13,564.72); Auckland (+11.7 per cent to NZD146.04); Taipei (+11.7 per cent to TWD5,183.20); Shanghai (+11.2 per cent to CNY530.82); and Hanoi (+11.1 per cent to VND1,968,215.43). Seoul (minus-8 per cent to KRW165,287.86) and Phuket (minus-7.4 per cent to THB2,995.11) reported the largest RevPAR decreases. Putting the data in perspective, Elizabeth Wrinkle, Managing Director, STR Global, said: "In the first 11 months, China was able to increase occupancy by 2 per cent to 66.2 per cent year to date; however, the market is still struggling with rate, resulting in a 1 per cent RevPAR decline (when reported in local currency). Japan has remained flat from an occupancy perspective; however, rate still grows, due to ongoing government economic policies, most significantly the weakness of the Yen." Pointing to Thailand, Wrinkle said: "As a result of last spring's military action resulting in uncertainty in the minds of tourists, Thailand has seen demand declines of 11.3 per cent in November year to date, which has negatively impacted occupancy (minus-12.9 per cent). In spite of declining demand and occupancy, the country grew rates, when reported in local currency, by 2.9 per cent.

Sourish Bhattacharyya is the Consulting Editor of BW Hotelier.