Asia Pacific sees heady RevPAR uptick

Courtyard by Marriott, Raipur
Courtyard by Marriott, Raipur, India

The hotel industry in the Asia Pacific region has reported positive results in the three key performance metrics during May 2017, according to recent data from STR. While occupancy increased by 2.7 percent to 68.9 percent in May 2017, ADR rose by 2.4 percent to $96.78. RevPAR experienced a significant increase by 5.2 percent to $66.73.

India

This was the highest absolute occupancy level for a May in India since 2007 as occupancy was up by 5.7 percent to 61.4 percent. With RevPAR up 4.2 percent during the first five months of 2017, STR analysts believe that hotel performance is receiving a push from domestic tourism as well as a rising middle class and a lift in disposable household income. Specifically in May, hotel demand was supported by Indian Premier League cricket and the African Development Bank Group Annual Meetings in Ahmedabad. With ADR increasing by 3.5 percent to $83.91, RevPAR surged by 9.1 percent to $51.52 in May 2017. 

New Zealand

Each of the three key performance metrics reached record levels for a May in New Zealand. Occupancy rose by 4.7 percent to 76.5 percent, and ADR increased by 12.1 percent to $124.17. May also marked the 47th consecutive month with year-over-year RevPAR growth in the country as RevPAR surged by 17.4 percent to $95.03. STR analysts attribute the consistent performance to a lack of significant supply growth and sustained strong demand that has provided operators with confidence in their rate positioning. May specifically was positioned between two busy months as Auckland hosted the World Masters Games in April, and the Irish Lions Rugby team is touring the country in June.

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South Korea

According to STR analysts, performance in the country is being affected by rising political tensions with China. As of April, the Korea National Tourism Organization had reported a 25.8-percent year-to-date decline in arrivals from China, its largest feeder market. In April, the decrease in Chinese arrivals reached 66.6 percent year over year. Concurrently, hotel supply has grown 4.9 percent thus far in 2017. In May 2017, occupancy fell by 7.5 percent to 64.3 percent as ADR decreased by 7.3 percent to $135.67, causing RevPAR to decrease by 14.3 percent to $87.24.

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