STR: Asia Pacific hotel performance for May 2019
- Auckland performance falls due to supply growth and lower group demand
- Sydney RevPAR down for 14th consecutive month
U.S. dollar constant currency, May 2019 vs. May 2018
- Occupancy: +0.4% to 68.5%
- Average daily rate (ADR): +1.1% to US$96.53
- Revenue per available room (RevPAR): +1.5% to US$66.15
Local currency, May 2019 vs. May 2018
Auckland, New Zealand
- Occupancy: -4.2% to 78.2%
- ADR: -6.3% to NZD178.04
- RevPAR: -10.2% to NZD139.18
The decline in occupancy was mostly due to a surge in new supply (+5.0%). However, STR analysts note that slower demand was also visible during the weekends, whereas corporate weekday business held steady. Minimal growth in demand for the month (+0.5%) was largely a result of lost group demand (10 or more rooms sold together) in comparison with last May. That May decline was a continuation of recent trends, as Auckland has reported a group demand decrease of 15.5% for the first five months of the year. Transient demand (less than 10 rooms sold together) rose 3.2% during the same time period.
- Occupancy: -0.9% to 81.8%
- ADR: -2.7% to AUD208.98
- RevPAR: -3.6% to AUD170.91
Performance decreases were mostly due to supply (+1.8%), which outpaced growth in demand (+0.8%). STR analysts note that RevPAR in Sydney has now declined year over year for 14 consecutive months. STR and Tourism Economics' latest forecast predicts a 2.6% decrease in RevPAR for 2019, after the metric dropped 1.0% in 2018.
STR provides premium data benchmarking, analytics and marketplace insights for global hospitality sectors. Founded in 1985, STR maintains a presence in 15 countries with a corporate North American headquarters in Hendersonville, Tennessee, an international headquarters in London, and an Asia Pacific headquarters in Singapore. STR was acquired in October 2019 by CoStar Group, Inc. (NASDAQ: CSGP), the leading provider of commercial real estate information, analytics and online marketplaces. For more information, please visit str.com and costargroup.com.