STR: Asia Pacific hotel performance for Q3 2017
Hotels in the Asia Pacific region reported positive results in the three key performance metrics during Q3 2017, according to data from STR.
U.S. dollar constant currency, Q3 2017 vs. Q3 2016
Occupancy: +3.3 percent to 73.5 percent
Average daily rate (ADR): +1.6 percent to US$98.39
Revenue per available room (RevPAR): +5.0 percent to US$72.36
Local currency, Q3 2017 vs. Q3 2016
Occupancy: +0.9 percent to 62.4 percent
ADR: +2.7 percent to INR5,265.96
RevPAR: +3.6 percent to INR3,287.73
Healthy supply growth (+3.0 percent) once again limited occupancy and rate growth in the country. In absolute terms, however, occupancy reached its highest level for a Q3 in India since 1996. ADR hit its highest Q3 absolute value since 2012. Additionally, STR analysts note that there were almost 8,000 less rooms in the development pipeline in India compared with last September.
Occupancy: +0.7 percent to 75.9 percent
ADR: +10.3 percent to NZD177.89
RevPAR: +11.0 percent to NZD134.99
According to STR analysts, New Zealand remains one of the strongest performers in the region due to consistent demand and a lack of significant supply growth. Figures from the Ministry of Business, Innovation and Employment showed that the country welcomed a record-breaking 3.7 million international visitors through August, which was a 9.2 percent increase compared with the same eight months in 2016. Holiday arrivals were the main contributor to the growth in arrivals.
Occupancy: -9.4 percent to 68.2 percent
ADR: -5.7 percent to KRW151,106.19
RevPAR: -14.6 percent to KRW103,094.24
ADR has decreased year over year for 36 consecutive months in South Korea (since September 2014) with massive supply growth playing a role in the equation. Since the beginning of 2015, the country has added more than 369,000 hotel rooms, and demand growth is not nearly keeping pace partly due to geopolitical tension in the region. STR analysts note that Group business has seen a noticeable decline, specifically with Chinese travelers. Given the volatility of the export balance with China as its biggest trade partner, South Korea is likely to fall back from its 17 million international arrivals in 2016, of which China accounted for nearly half. Through the first seven months of 2017, travelers from mainland China were almost halved in year-over-year comparisons, according to the Korea Tourism Organization.