Double Digit Decreases for Asia Hotels

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. May 01, 2009

MAY 1, 2009 - According to data compiled by STR Global, hotels in the Asia Pacific region reported double-digit decreases when reported in U.S. dollars for all three key performance metrics for March 2009.

The Asia Pacific region's occupancy dropped 14.4% to 60.6%; average daily rate declined 19.5% to US$117.46; and revenue per available room fell 31.1% to US$71.14.

"Hotel performance continues to tumble in Asia, with a combination of oversupply and the global economic slowdown wiping out many of the gains made over the previous couple of years," said James Chappell, managing director of STR Global.

"China and India, previously such exciting markets, have fallen in RevPAR 35% and 39%, respectively (when reported in local currency). Singapore is hard on their heels with a 28% fall in RevPAR year on year," Chappell added. "Other southeast Asia countries that have been experiencing a boom recently are also feeling the pinch with Vietnam falling 27% and Thailand falling 36.5% in RevPAR. It's not all bad news however, with Australia only dropping in RevPAR 5%, the Philippines growing 4.7%, Indonesia 6.7% and South Korea 14%. We expect India to stabilise somewhat in the coming months, but China, and especially Beijing, is in for a tough few months in the year after the Olympics."

Among the key markets, Seoul, South Korea, reported the only double-digit increase in occupancy, which jumped 12.5% to 84%.

Melbourne, Australia, also reported an occupancy increase (+1.1% to 79.7%).

Beijing, China, reported the largest occupancy decrease (-29.3% to 49.8%). Bangkok, Thailand, followed closely with a 29% decrease, down to 55% for the month.

Two markets increased in ADR: Bali, Indonesia, was up 5.3% in ADR to US$102.72, and Tokyo, Japan, was up 4.1% to US$216.68. New Delhi, India, and Mumbai, India, reported the largest ADR decreases, down 43.8% to US$185.03 and 40.2% to 174.91, respectively.

Two markets reported single-digit RevPAR decreases: Osaka, Japan (-6.5% to US$94.94) and Tokyo (-5.5% to US$157.13). Five markets reported RevPAR decreases of more than 40%: New Dehli (-55.2% to US$120.76); Phuket, Thailand (-48.7% to US$65.85); Mumbai (-48.1% to US$108.09); Beijing (-44.3% to US$49.60); and Bangkok (-42.7% to US$52.26).