Asia Pacific hotel rates flounder in Q1 2014

Hotel rates in the Asia Pacific region declined in the first quarter of 2014.

Following a 4.1 percent drop in 2013, the region’s average daily rate (ADR) continued to sink in the first quarter of 2014, dropping 3.6 percent to $122.36. Occupancy climbed 0.7 percent to 66.0 percent, but this wasn’t enough to prevent the region’s revenue per available room (revPAR) falling 2.9 percent to $80.81.

The downturn in ADR was particularly sharp in Central & South Asia (-11.3 percent to $137.87) and Australasia (-8.9 percent to $163.65), although both these results were partially offset by occupancy growth. In Southeast Asia however a 0.3 percent dip in ADR, to $146.55, was compounded by a 4.0 percent decline in occupancy.


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According to Elizabeth Winkle, managing director of STR Global, this decline is largely the result of Bangkok’s political problems.

“In February and March, Bangkok reported the lowest occupancies in 10 years. The prolonged political crisis is impacting the hospitality industry and wider economy,” Winkle said. She added however, that “India is finally showing signs of occupancy growth”, following several years of oversupply and weak demand.

In March 2014 alone, Asia Pacific’s revPAR fell 3.9 percent, as a 0.7 percent drop in occupancy compounded a 3.3 percent ADR decline. Bali (-13.0 percent to $114.38) and Bangkok (-12.8 percent to $94.72) reported the largest ADR decreases for the month, in US dollars terms, while the Thai capital’s occupancy slumped 33.6 percent last month to 53.7 percent.

There were success stories elsewhere in the region however; Auckland’s ADR increased 6.0 percent to $133.44, while Mumbai achieved strong 8.1 percent rise in occupancy, to 69.2 percent. Osaka experienced Asia’s only double-digit revPAR increase, rising 11.5 percent to $108.42.

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