7 Things to Know about the Asia Pacific Hotel Market [Infographic]
STR shares updates on the Asia Pacific region’s hotel market for Q1 2016.
Positive overall performance in the Asia Pacific region
In Q1 2016, the Asia Pacific region reported mostly positive results in three key performance metrics when reported in U.S. dollar constant currency. Demand was up 4.9%, which led to a 1.7% increase in occupancy. While average daily rate (ADR) remained nearly flat (-0.8%), revenue per available room (RevPAR) slightly increased 0.9% compared with Q1 2015.
Thailand RevPAR growth
After experiencing double-digit growth in Q1 2015, Thailand recorded growth in occupancy (+4.6%), ADR (+1.3%) and RevPAR (+5.9%) during Q1 2016 when reported in local currency. Bangkok and Phuket also experienced positive performance in Q1 2016, with RevPAR increases of 6.4% and 4.8%, respectively, when reported in local currency.
Tokyo recorded double-digit RevPAR growth in 2015 (+12.4%). In 2016, STR and Tourism Economics forecast that the city’s RevPAR will grow between +5% and +10% year on year, when reported in local currency.
Malaysia finished Q1 2016 with an 8.1% increase in occupancy and 1.5% growth in ADR (local currency). This market is starting to show some signs of recovery, following performance declines in Q1 2015 due to a weakened economy and drops in tourism.
New Zealand growing profitability
New Zealand saw strong growth in gross operating profit per available room (GOPPAR), which increased 29% according to preliminary results of the 2015 STR Profitability Survey. New Zealand’s GOPPAR in 2015 was US$52, and recorded a 31% profitability margin from total revenue.
The largest pipeline in Southeastern Asia is in Indonesia, with more than 60,000 rooms, according to the STR Pipeline Report for April 2016. More than 24% of total rooms are developed for hotels in upscale classes. Upper Midscale and Midscale chain hotels follow closely with more than 20,000 rooms combined in the pipeline.
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What does the future have in store for your market?
Find out how macro-economic factors can impact your market performance in the future performance with STR’s Market Forecast Report. In the Asia Pacific Region, forecasts are available for Hong Kong, Beijing, Tokyo, Singapore and Sydney, as well as 60 plus markets worldwide.