Occupancy levels at hotels in Asia Pacific dropped 2.0% year-on-year in October 2011, but strong room rates continued to boost the region. According to the latest data from STR Global, demand levels at Asia’s hotels dipped to 70.0% last month, but average daily rates (ADR) jumped 8.4% to US$151. This caused the region’s revenue per available room (revPAR) to rise 6.2% year-on-year to US$105. This is higher than the Americas (US$67), but lower than Europe (US$103) and the Middle East & Africa (US$107).
Showing it remains unaffected by the flood crisis in Bangkok, Phuket recorded the largest occupancy increase, rising 8.9% year-on-year to 70.2%. Interestingly Bangkok recorded a 6.4% occupancy rise to 57.7%. Two markets posted double-digit occupancy declines: Shanghai (-14.9% to 63.3%), and New Delhi (-13.9% to 63.2%).
Hong Kong ended the month with the largest ADR increase, rising 19.8% to US$293, followed by Bali (+19.4% to US$153). New Delhi’s ADR fell 18.4% to US$184 – the largest decrease in region.
Five markets experienced revPAR growth of more than 15%: Brisbane (+20.2% to US$172), Hong Kong (+20.0% to US$250), Jakarta (+19.4% to US$75), Beijing (+18.2% to US$84), and Bali (+15.1% to US$119). New Delhi’s revPAR slumped 29.7% to US$117, while in Shanghai revPAR dropped 24.5% to US$83. Both these markets however, suffered from comparisons to strong performances in October 2010, when Delhi hosted the Commonwealth Games and Shanghai was in the final month of its World Expo.
According to STR Global’s Managing Director, Elizabeth Randall, major events had a big impact on the region’s hotels in October 2011.
“October was another fantastic month for New Zealand as it continued to host the Rugby World Cup, resulting in a 110.5% increase in revPAR in local currency,” Ms Randall explained. “Despite the floods affecting parts of Thailand, the country reported a 10.9% revPAR increase for the month showing its resilience. Hong Kong is top of the city league table with 20.2% revPAR increase for the month, benefiting from its positions as a strategic gateway into China and as an international financial and business centre.”