STR: Asia Pacific 2017 hotel performance

 

 STR

STR: Asia Pacific 2017 hotel performance

STR: Asia Pacific 2017 hotel performance

Countries of focus: New Zealand, South Korea and Vietnam

Hotels in the Asia Pacific region reported positive results in the three key performance metrics during 2017, according to data from STR.

U.S. dollar constant currency, 2017 vs. 2016

Asia Pacific

  • Occupancy: +2.6 percent to 70.9 percent
  • Average daily rate (ADR): +0.9 percent to US$100.57
  • Revenue per available room (RevPAR): +3.6 percent to US$71.31
  • Local currency, 2017 vs. 2016

New Zealand

  • Occupancy: +1.1 percent to 80.2 percent
  • Average daily rate (ADR): +10.7 percent to NZD189.58
  • Revenue per available room (RevPAR): +11.9 percent to NZD152.06

STR analysts note that 2017 was another year of sustained strong demand in New Zealand. Against the backdrop of increased international arrivals and a strong domestic economy, special events, such as the World Masters Games (April) and British & Irish Lions rugby tour (June), played a key role in driving performance. Additionally, another year with few new rooms added to the market (+0.3 percent supply growth) allowed the aforementioned special events and high absolute trading levels to continue boosting hotelier pricing power. All of the key markets in the country posted RevPAR growth for the year, specifically Queenstown (+15.3 percent to NZD190.92) and Auckland (+13.4 percent to NZD173.18). 

South Korea

  • Occupancy: -7.4 percent to 65.3 percent
  • Average daily rate (ADR): -7.7 percent to KRW152,157.99
  • Revenue per available room (RevPAR): -14.5 percent to KRW99,298.30

Ahead of its Winter Olympics host year, South Korea’s performance was greatly affected by 7.5 percent supply growth. STR analysts also attribute a slight demand decline (-0.4 percent) to political tension in the region and a significant decrease in international arrivals, which were down 22.7 percent according to the Korea Tourism Organization. The absolute occupancy and ADR levels were well below historical averages in South Korea.

Vietnam

  • Occupancy: +5.9 percent to 71.3 percent
  • Average daily rate (ADR): +3.9 percent to VND2,791,367.00
  • Revenue per available room (RevPAR): +10.0 percent to VND1,989,663.96

Thanks to a third consecutive year with significant demand growth (+8.7 percent), the absolute occupancy level was well above historical averages in the country. Both of Vietnam’s key hotel markets, Hanoi (RevPAR: +13.2 percent) and Ho Chi Minh City (RevPAR: +6.5 percent), registered solid growth for the year. The country’s average performance levels across weekdays and weekends indicated a solid mix of demand sources as well.

Source = STR
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