Industry Update
Performance25 January 2019

STR: Asia Pacific 2018 Hotel Performance

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Key 2018 takeaways:

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  • Singapore sees highest occupancy level since 2012
  • Ho Chi Minh City reports higher room rates, but lower occupancy due to supply growth
  • Thailand growth driven by higher room rates as demand softens

STR's sample comprises 63,000 hotels and 8.4 million hotel rooms around the globe. Contact [email protected] for additional market data.

LONDON — Hotels in the Asia Pacific region reported positive results across the three key performance metrics during 2018, according to data from STR.

U.S. dollar constant currency, 2018 vs. 2017

Asia Pacific

  • Occupancy: +0.2% to 70.6%
  • Average daily rate (ADR): +1.0% to US$106.99
  • Revenue per available room (RevPAR): +1.2% to US$75.53

Local currency, 2018 vs. 2017

Singapore

  • Occupancy: +3.1% to 83.7%
  • ADR: +0.7% to SGD271.49
  • RevPAR: +3.8% to SGD227.35

The country experienced its highest total-year occupancy level since 2012. STR analysts note that strong demand (+6.7%) surpassed supply growth (+3.5%) as arrivals to the city-state continued to rise and the pace of new hotel openings slowed.

Ho Chi Minh City, Vietnam

  • Occupancy: -1.8% to 73.4%
  • ADR: +7.0% to VND2,637,846.90
  • RevPAR: +5.1% to VND1,936,823.10

Occupancy declined as supply growth (+1.9%) outpaced mostly flat demand (+0.1%)—a trend likely to continue as new hotels are lined up for construction, according to STR analysts. However, demand into the city is expected to continue to grow long-term as plans for an expansion of the international airport should facilitate new arrivals.

Thailand

  • Occupancy: -0.8% to 75.7%
  • ADR: +3.5% to THB3,703.16
  • RevPAR: +2.8% to THB2,803.14

With a wider variety of growth around Thailand, Bangkok maintained strong performance, particularly in the central areas of the city, as supply growth softened. STR analysts do however note that there is slight uncertainty in various markets that began later in 2018, as the pace of important international arrival segments such as that of mainland China has slowed down. The country has showed its resilience many times in the past to external factors, and 2019 is likely to provide another test.

About STR

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.

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