Hotels in the Asia/Pacific region reported occupancy rose 0.8% in May to 68.9%, ADR increased 1.1% to $102.95 and RevPAR rose 1.9% to $70.90.
LONDON—Hotels in the Asia Pacific region posted growth across the three key performance metrics during May 2018, according to data from STR.
U.S. dollar constant currency, May 2018 vs. May 2017
• Occupancy: +0.8% to 68.9%
• Average daily rate (ADR): +1.1% to US$102.95
• Revenue per available room (RevPAR): +1.9% to US$70.90
Local currency, May 2018 vs. May 2017
• Occupancy: +1.9% to 68.3%
• ADR: +1.6% to CNY514.84
• RevPAR: +3.5% to CNY351.49
Mainland China has now experienced 13 consecutive months of year-over-year RevPAR growth. STR analysts credit the increase in May to leisure business as growth was more noticeable in the transient segment, specifically on weekends. Continued growth in demand (room nights sold) will be key as China ranks first in the in the Asia Pacific region in rooms under construction (207,030). That total represents almost 9% of the country’s existing supply.
• Occupancy: +0.6% to 83.2%
• ADR: +0.1% to JPY14,788.12
• RevPAR: +0.7% to JPY12,304.41
The 83.2% occupancy level was the second-highest for any May in STR’s Japan database. Most of the days of the month produced performance growth, but a significant year-over-year decline was reported the night prior to Constitutional Memorial Day (RevPAR: -51.2%). Overall for the month, segmented data indicated strength in leisure business as growth was much more pronounced on weekends.
• Occupancy: +0.9% to 66.7%
• ADR: +6.8% to VND2,815,312.49
• RevPAR: +7.8% to VND1,878,281.26
Solid demand growth (+7.1%) was somewhat countered by significant growth in supply (+6.1%) – the largest uptick in new rooms in the country since March 2016. Regardless, RevPAR has grown year over year in Vietnam for 25 months in a row. STR analysts note that May growth occurred despite 7.4% decreases in occupancy and RevPAR in Hanoi. Performance growth will continue to be challenged by supply growth as Vietnam’s room construction total (21,985) represents more than 27% of the country’s existing supply.
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