Asia Pacific Market Update Q2 2015
Asia Pacific Quarterly Updates Q2 2015 from STR Global
Spotlight Asia Pacific – Constant Currency
RevPAR, June 2015 YTD, USD, Constant Currency
A focus on Asia Pacific’s performance
For the June 2015 year-to-date, hotels in the region reported a relatively flat performance, as RevPAR decreased by -0.8% to USD72.37. Occupancy remained stable (+0.1% to 66.6%), while average daily rate (ADR) declined by -0.9% to USD108.58. (USD in Constant Currency***).
***Constant Currency is an exchange rate that eliminates the effect of exchange rate fluctuations.
APAC - 12 Month Moving Average
ADR and Occ, Jan 2013 – June 2015, USD, Constant Currency
APAC Class Comparison
June 2015 YTD, Occ, ADR and RevPAR, USD, Constant Currency
Occupancy was the main driver behind the growth for the different class segments in the Asia Pacific region. Only the Midscale & Economy segment recorded a decline in Occupancy levels for H1 2015 when compared to the previous year. However, this class was the only one recording positive RevPAR growth, thanks to the +2.9% increase in ADR, when analysed in USD constant currency.
June 2015 YTD Occupancy, ADR & RevPAR percentage change in USD
Central & South Asia
Australia & Oceania
*FX = Foreign Exchange Rate, **CC = Constant Currency
When eliminating the exchange rate impact towards USD, and calculating ADR on a constant currency basis, the Asia Pacific region as a whole indicated slightly negative RevPAR growth for the first six months of the year (-0.8%).
Several countries within the APAC sub regions include countries with high exchange rate fluctuations towards USD, illustrate more positive ADR and RevPAR growth rates, while North-eastern Asia, including countries with more stable currencies, indicate a less significant shift in these measures.
Australia & Oceania continued to be the top performing subcontinent, with growth in both Occupancy (+1.6%) and ADR (+2.6%). Demand in the subcontinent has recently outpaced supply growth.
2015 Q2 Snapshot: APAC Countries
Occ, ADR % Chg., June 2015 YTD, in Local Currency
- The top performing countries for Occupancy levels for the first half of 2015 were Japan (82.1%), Singapore (80.7%) and New Zealand (77.5%).
- Osaka (89.8%), Tokyo (86.3%), Sydney (84.6%), Auckland (81.6%), Hong Kong (81.6%) and Melbourne (81.6%) saw Occupancy for the June 2015 YTD being over the 80% mark.
- For the June 2015 YTD Indonesia saw a double-digit decline in Occupancy (-12.6% to 56.2%) and RevPAR (-9.3% to IDR603,481.07), but the country’s ADR was up +3.8% to IDR1,073,903.35. Government austerity measures as the main reason behind the Occupancy drop in Indonesia. Markets such as Jakarta, Bandung and Bali saw demand drop and Occupancy fall shortly after the austerity measures were put into practice during the fourth quarter of 2014.
- South Korea reported declines in the three key performance measurements: Occupancy (-11.3% to 63.6%), ADR (-8.0% to KRW172,872.22) and RevPAR (-18.5% to KRW109,949.33). The figures for H1 2015 were greatly affected by the June performance, which saw Occupancy decline by -33.9%, as tourism in the country is struggling to recover from the recent MERS outbreak.
- Thailand posted double-digit increases in Occupancy (+22.1% to 74.5%) and RevPAR (+18.8% to THB2,767.99). However, ADR in the market declined marginally by -2.7% to THB3,715.83 in the June 2015 YTD. The performance in Bangkok was behind this trend, as Occupancy for hotels in the city increase by +50.4% in June, as a result of the aftermaths of the coup d’état at the end of May 2014.
All ADR and RevPAR figures measured in local currency
Top 5 countries Asia Pacific
In Construction, Pipeline June 2015 Report
Changes to markets
As part of our bi-annual market mapping exercise, we are going to review and revise the structure of some markets and submarkets with July 2015 processing. This includes the allocation of individual hotels to new / different markets and submarkets, where applicable. We do this to ensure minimum disruption to your data sets whilst providing the best industry data available as the sample grows and markets evolve. Several markets will reflect these changes with the July data release. Participants in those regions will be notified in a separate communication.