Asia-Pacific hotels report declines for October: STR

Metropole Phuket Hotel
Hotels in Phuket, like the Metropole Phuket Hotel (which will rebrand next year as the Courtyard by Marriott Phuket Town) reported an uptick in occupancy rates. Photo credit: Marriott International

Hotels in the Asia-Pacific region reported negative results in the three key performance metrics in October, according to the latest data from STR.

Across the region, occupancy dropped 0.9 percent to 71 percent year over year, average daily rate declined 2.4 percent to $100.25 and revenue per available room fell 3.4 percent to $71.16.

In Phuket, Thailand, occupancy was up 5.5 percent to 65.6 percent, but ADR dropped 5.5 percent to THB2,813.53 and RevPAR fell 0.3 percent to THB1,846.25. STR analysts noted that group demand—up 40.3 percent—drove the lift in occupancy, while demand in the transient segment fell 1.8 percent. Hoteliers may have lowered rates due to the appreciation of the Baht and a more competitive marketplace with a 3.1 percent rise in room inventory from last October.

FREE DAILY NEWSLETTER

Like this story? Subscribe to IHIF!

The hospitality industry turns to IHIF International Hotel Investment News as the must-read source for investment and development coverage worldwide. Sign up today to get inside the deal with the latest transactions, openings, financing, and more delivered to your inbox and read on the go.

In Tokyo, occupancy dropped 2.8 percent to 87.9 percent, but ADR improved an impressive 19.5 percent to JPY23,663.64 and RevPAR jumped 16.2 percent to JPY20,808.51.

The decline in occupancy was due to a surge in new supply (up 6.9 percent) outpacing demand (up 4 percent). However, STR analysts note that performance was boosted by the Rugby World Cup 2019 (Sept. 20 through Nov. 2). Tokyo saw a double-digit increase in ADR (up 46.7 percent) and a subsequent jump in RevPAR (up 44.3 percent) during the knockout stage of the event (Oct. 19 through Nov. 2).

Suggested Articles

The Inn at Elon, owned by an affiliated entity of Elon University, plans to use all revenue beyond operating costs to fund scholarships.

Her Lyda Sofa, Fascio Collection and Crossbeam table all earned recognition from the Chicago Athenaeum Museum of Architecture and Design.

The wearable device ensures hotel staff can quickly request help anytime and anywhere on property.