Asia Pacific Market Update Q3 2015
Asia Pacific Market Update Q3 2015 from STR Global
Spotlight Asia Pacific – Constant Currency
RevPAR, September 2015 YTD, USD, Constant Currency
A focus on Asia Pacific’s performance
For September 2015 year-to-date, hotels in the region reported a relatively flat performance, as RevPAR decreased by -0.1% to USD73.15. Occupancy remained stable (+0.3% to 67.8%), while average daily rate (ADR) declined by -0.5% to USD107.8. (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 – Sep 2015, USD, Constant Currency
September 2015 YTD Occupancy, ADR & RevPAR percentage change in USD
*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 recorded flat RevPAR performance for September YTD (-0.1%).
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 (+2.7%). The ADR for this subcontinent is strongly impacted by the exchange rate of the Australian Dollar. Demand (+3.0%) in the subcontinent has been outpacing supply growth (+1.4%) until September YTD.
APAC Class Comparison
September 2015 YTD, Occ, ADR and RevPAR, USD, Constant Currency
In the third quarter Occupancy was the main driver behind the growth for the different class segments in the Asia Pacific region, despite Midscale & Economy Collapsed class declining slightly (-0.9%). However, as of the positive ADR growth (+2.9%), the class was able to make a positive RevPAR (+1.5%) growth, which indicates the strongest growth in the class mix.
2015 Q3 Snapshot: APAC Countries
Occ, ADR % Chg., September 2015 YTD, in Local Currency
• China experienced a subdued performance in September. Occupancy (-0.6% to 64.9%) and ADR (-1.2% to CNY548.27) were both down, resulting in a -1.8% RevPAR decline to CNY 355.97. Supply (+3.6%) paced on a similar growth rate with demand (+3.0%). The slowdown of the Chinese economy is under global scrutiny, as inflation has fallen to 1.6% in September.
• New Zealand hotels experienced a positive September, thanks to flat supply (+0.6%) but growing demand (+2.6%). As a result, occupancy was up +1.9% to 74.7% and coupled with a 5.8% increase in ADR, resulted in RevPAR growing by 7.8% to NZD111.33. RevPAR YTD recorded double digit growth (+12.5%) to NZD116.35.
• Hotels in Taiwan suffered from a poor performance in September. Demand in the country slipped 1.3% for the month. Also in late September, the Central Bank of Taiwan cut its interest rate to 1.75%, the first such cut in the country since 2009. From a YTD perspective, occupancy (+1.1%) and ADR (+0.8%) remain positive due to good performances in the beginning of 2015.
• Delhi-National Capital Region, India, saw a 2.1% increase in occupancy in September to 62.9% but decreases in ADR (-5.0% to INR5,602.49) and RevPAR (-3.0% to INR3,525.79). In the Upscale, UpUp and Lux bucket, Groups ADR declined -25.8%, resulting in an overall -3.0% decline in RevPAR to INR3,525.79.
• Hotels in Ho Chi Minh City posted a positive performance in Q3. RevPAR grew +8.8% to VND1,539,639.78 on the back on increased occupancy (+1.0%) and ADR (+7.7%). Demand (+7.8%) outpaced supply (+6.7%), resulting in the positive performance for the quarter.
• Strong demand (+16.7%) helped hotels in Phuket to post a positive performance in the third quarter of 2015. RevPAR saw double digit increase (+13.0%) to THB2,044.51, driven by the strong increase in occupancy (+14.3%). For September, ADR reversed the negative trend experience for the last 15 months and posted positive, yet modest, growth (+1.5% to THB2,740.18). Despite the August bombing and the momentary disruption created by it, tourism arrivals were only interrupted on the short term.
All ADR and RevPAR figures measured in local currency