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.
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).