Asia-Pacific hotels are showing uneven results for the first half of 2014, according to a report released by STR Global.
Occupancy in the region increased by just 0.9 percent to 66.9 percent, which is a small gain but positive compared to the region's average daily rate (ADR) and revenue per available room (RevPAR). ADR fell 3.1 percent to US $118, while RevPAR dropped 2.3 percent to $78.90.
Furthermore, occupancy in South-East Asia was also negative, falling 4.7 percent, a result driven by numbers in Thailand and attributed to its political crisis. Good news for the region comes in an increase in ADR, with South-East Asia's numbers up 6.5 percent.
"Asia-Pacific is such a diverse region that there is a lot of occurring from a political and/or economic perspective," Elizabeth Winkle, managing director of STR Global, told TTG Asia. "While growth is muted, the region is still reporting increases in the three key performance industry metrics for the first six months of the year, when measured in US dollars in constant currency (converted with the exchange rate as of January 31, 2014).”
Looking only at the month of June, while accounting for currency, occupancy in the Asia-Pacific region dropped 1.4 percent to 66.4 percent, while ADR rose 0.5 percent to $126.50. RevPAR is also down 0.9 percent to $74.61.
The biggest area of growth for ADR is coming from Auckland, which rose 20.7 percent to US $122.90. The only double-digit ADR decrease can be sourced to Bali, where it fell 10.5 percent to $126.50.
Three areas achieved growth in RevPAR of more than 10 percent, including Auckland (37.6 percent), Shanghai (15.5 per cent) and Osaka (11.2 per cent).
Thailand's political crisis is continuing to damage its numbers, with RevPAR in Bangkok and Phuket down 39.3 percent and 20.8 percent, respectively. These represent the largest RevPAR decreases within the Asia-Pacific region.