Hotel rates in the Asia Pacific continued to slide in September 2013, as the region faced an influx of new room supply and slowing demand.
According to the latest data from STR Global, the region experienced a 5.9% decline in average daily rates (ADR) last month, to US$118.94. And while occupancy levels did increase slightly, up 0.7% to 68.5%, this was not enough to prevent a drop in revenue per available room (revPAR), which fell 5.2% to US$81.45.
For the first eight months of the year, revPAR has now fallen 4.1% to US$82.29, driven by declines in both ADR and occupancy.
“Year-to-date performance is weakening and we see performance softening,” said Elizabeth Winkle, managing director of STR Global. “We have seen for the first time in three years that the equilibrium has shifted and supply is outpacing demand. Declining demand and increasing supply is negatively impacting all key performance indicators across the region with the exception of Southeastern Asia, where ADR continues to be positive.”
Ms Winkle added that the slowdown in demand from China is affecting not only the mainland’s hotel market, but other Asian cities as well.
“We have seen a slowdown in Hong Kong and Singapore, two key and strong performing markets,” she continued. “This constriction is a reflection of the general economic slowdown in China, a large source market, and is more profoundly impacting Hong Kong. This time last year, Hong Kong narrowly beat Singapore in the revPAR race, but in year-to-date September 2013 Singapore (US$197.48) is leading Hong Kong (US$184.62).”
In September 2013 alone, Auckland achieved the highest revPAR growth, rising 16.5% to US$90.32, followed by Bangkok (+10.1% to US$70.27). Delhi’s revPAR however, fell 18.3% to US$59.58 – the region’s largest decrease.
Pic caption: Hong Kong has been hit by the Chinese slowdown, according to STR Global