STR Global: Asia/Pacific hotel performance improves in December 2010

Hotels in the Asia/Pacific region experienced increases in all three key performance metrics for year-end 2010 when reported in U.S. dollars, according to data compiled by STR Global.

In year-over-year measurements, the Asia/Pacific region's occupancy rose 8.9 percent to 66.0 percent, average daily rate increased 11.4 percent to US$132.80, and revenue per available room jumped 21.3 percent to US$87.69.

"Asia/Pacific was the star performer during 2010. It was the only region to report double-digit RevPAR growth at year-end", said Elizabeth Randall, managing director of STR Global. "Demand came back strongly across the region due to better economic conditions and events such as the World Expo in Shanghai. Absolute RevPAR now lags 2008 peaks by only (US)$1.60."

Highlights from key market performers for year-end 2010: (year-over-year comparisons, all currencies in U.S. dollars)

· Shanghai, China, experienced the largest occupancy increase, rising 27.7 percent to 63.4 percent, followed by Beijing, China, with a 21.5-percent increase to 63.1 percent.

· Bangkok, Thailand, posted the only occupancy decrease for the year, falling 2.7 percent to 53.3 percent.

· Four markets reported ADR increases of more than 20 percent: Sydney, Australia (+22.5 percent to US$165.95); Hong Kong, China (+22.3 percent to US$205.34); Shanghai (+21.0 percent to US$128.77); and Brisbane, Australia (20.5 percent to US$159.94).

· Shanghai jumped 54.6 percent in RevPAR to US$81.70, reporting the largest increase in that metric, followed by Hong Kong (+34.9 percent to US$166.87) and Sydney (+31.1 percent to US$138.60).

· Bangkok ended the year virtually flat in RevPAR with a 0.3-percent decrease to US$50.26.

December 2010

Overall in December, the Asia/Pacific region's occupancy increased 2.4 percent to 63.9 percent, ADR was up 15.0 percent to US$146.87, and RevPAR jumped 17.8 percent to US$93.91.

Among the key markets, Beijing posted the largest occupancy increase, rising 13.2 percent to 58.3 percent, followed by Jakarta, Indonesia, with a 10.7-percent decrease to 70.5 percent. Shanghai fell 8.3 percent in occupancy to 44.9 percent, reporting the largest decrease in that metric.

Two markets reported ADR increases of more than 25 percent: Hong Kong (+27.3 percent to US$233.66) and Sydney (+26.5 percent to US$211.53).

Sydney jumped 29.0 percent in RevPAR to US$172.62, reporting the largest increase in that metric.

None of the region's key markets experienced decreases in ADR or RevPAR.