Southeast Asia Hotels with the Highest ADR and RevPar of the Continent in 2016

Asia Pacific Hotels Performance January-November 2016- Source: STR

Hotel consulting and data cabinet STR released performances for the Asia-Pacific market in November 2016; with ASEAN being the best perfoming regional market on the continent, although hotels reported mixed results from one country to another.

Compared with January-November 2015, the Asia Pacific region reported a 1.5% increase in occupancy to 69.1%. Average daily rate (ADR) dipped 1.0% to US$92.32 compared to the same period of 2015 while Revenue per available room (RevPar) grew 0.4% to US$63.77. The weakening of both ADR and RevPar can be explained by a continuous growth in the number of available rooms and currencies fluctuations. Since the beginning of the year, currencies such as the Australian Dollar, the Indonesian Rupiah, the Malaysian Ringgit and the Philippines Peso have been under pressure.

In Northeast Asia, China posted growth in both occupancy (+5.1% to 69.9%) and RevPar (+3.9% to CNY379.55) in November 2016 while the average daily room rate was down 1.2% to CNY543.31. In Japan, Tokyo experienced a 0.6% lift in occupancy to a very high 88.5%, while ADR declined by 0.6% to JPY19,338.78 and RevPar remained flat at JPY17,124.27. STR analyses that the lack of rooms’ supply in Tokyo pushes occupancy at record levels due to strong demand following visa deregulation policies and new flights. Northeast Asia hotels showed an average occupancy of 68.8% in the 11 first months of the year.

ASEAN hotels were by far the best performing in the region for the period january-November 2016. While the occupancy rate is inferior to other Asian regions at 68.4%, ADR stood during the same period at US$101.39 while ASEAN hotels RevPar reached US$69.32.

STR analysed that in November, Malaysia recorded a 4.5% increase in occupancy to 67.8% and a 0.3% rise in ADR to MYR340.44, leading to a 4.9% lift in RevPar to MYR230.94. STR analysts note that Malaysia’s tourism sector has been helped by an influx of Chinese arrivals following the new e-visa and visa-waiver program that began in March 2016. Also factoring into the positive year-over-year comparisons, November 2015 performance was weaker due to tourism issues stemming from the airline disasters as well as political and economic tensions.

By contrary, Singapore recorded its lowest absolute RevPar level (SGD216.64) for a November since 2008, a 7.1% decrease from November 2015. The results were split by a 3.3% drop in occupancy to 79.8% and a 3.9% decrease in ADR to SGD271.47. Playing a role in the negative results were consistent supply growth (+3.5% year to date) placing pressure on performance and fewer major events in the market.

STR did not provide data for Thailand during the same period. However, in Quarter 3, STR notices that hotels’ performance indicators continue to be strong. The occupancy of downtown hotels in Q3 was 79.3%, increasing by 5.8 percentage points from the previous year. ADR increased Y-o-Y by 2.8% to THB3,200. RevPar also improved by 10.9% to THB 2,600. STR estimates that the suppression of illegal zero-dollar package tours did not significantly affect the market in Q3. However, Q4 would definitely show a drop in average occupancy.