STR: Asia Pacific hotel performance for October 2017
LONDON -- Hotels in the Asia Pacific region reported positive results in the three key performance metrics during October 2017, according to data from STR.
U.S. dollar constant currency, October 2017 vs. October 2016
- Occupancy: +0.7% to 71.7%
- Average daily rate (ADR): +2.3% to US$104.15
- Revenue per available room (RevPAR): +2.9% to US$74.68
Local currency, October 2017 vs. October 2016
- Occupancy: +1.3% to 91.8%
- ADR: +2.6% to HKD1,395.12
- RevPAR: +3.9% to HKD1,281.33
Despite notable supply growth (+3.1%), occupancy rose due to a 4.5% year-over-year increase in demand. STR analysts partially attribute that demand growth to inbound arrivals, especially from Mainland China. Through the first nine months of 2017, Hong Kong welcomed 20.2 million overnight visitors (+4.3% year over year). Visitors from Mainland China accounted for 67% of the total (+5.3% year over year). Additionally, the National Day Golden Week (1-7 Oct. every year) and the Mid-Autumn Festival holiday combined into an eight-day holiday period in 2017. Hong Kong recorded 5.1% demand growth during the event year over year, resulting in a 13.9% rise in RevPAR during the period.
- Occupancy: +1.9% to 64.4%
- ADR: -1.3% to IDR980,023.75
- RevPAR: +0.6% to IDR630,662.71
RevPAR grew slightly after three consecutive years of October declines. The positive performance was largely driven by key business markets such as Jakarta and Surabaya, where hotel demand increased 10.0% and 14.4%, respectively. That growth represented a reversal in the year-to-date trend of demand declines. Bali suffered a demand decline (-6.2%) in October 2017 due to the ongoing threat around Mount Agung, which has hindered MICE (Meetings, incentives, conferencing, exhibitions) business.
- Occupancy: +3.1% to 67.4%
- ADR: +4.4% to PHP5,281.52
- RevPAR: +7.6% to PHP3,561.08
Hotel demand grew 6.9%, surpassing significant supply growth (+3.7% year over year).STR analysts note that the Philippines' tourism market is expected to remain resilient in spite of the Malawi incidents this year. Inbound tourist arrivals increased 11.9% to 4.4 million visitors as of August, according to the Pacific Asia Travel Association. Strong demand from corporate travelers is also indicated by transient demand growth.
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.