The hotel industry in the Asia Pacific region reported positive results in the three key performance metrics during May 2017, according to data from STR.
U.S. dollar constant currency, May 2017 vs. May 2016
- Occupancy: +2.7% to 68.9%
- Average daily rate (ADR): +2.4% to US$96.78
- Revenue per available room (RevPAR): +5.2% to US$66.73
Local currency, May 2017 vs. May 2016
- Occupancy: +5.4% to 61.4%
- ADR: +3.5% to INR5,406.77
- RevPAR: +9.1% to INR3,319.71
This was the highest absolute occupancy level for a May in India since 2007. With RevPAR up 4.2% during the first five months of 2017, STR analysts believe that hotel performance is receiving a push from domestic tourism as well as a rising middle class and a lift in disposable household income. Specifically in May, hotel demand was supported by Indian Premier League cricket and the African Development Bank Group Annual Meetings in Ahmedabad.
- Occupancy: +4.7% to 76.5%
- ADR: +12.1% to NZD169.87
- RevPAR: +17.4% to NZD130.01
Each of the three key performance metrics reached record levels for a May in New Zealand. Also, May marked the 47th consecutive month with year-over-year RevPAR growth in the country. STR analysts attribute the consistent performance to a lack of significant supply growth and sustained strong demand that has provided operators with confidence in their rate positioning. May specifically was positioned between two busy months as Auckland hosted the World Masters Games in April, and the Irish Lions Rugby team is touring the country in June.
- Occupancy: -7.5% to 64.3%
- ADR: -7.3% to KRW153,669.83
- RevPAR: -14.3% to KRW98,808.67
According to STR analysts, performance in the country is being affected by rising political tensions with China. As of April, the Korea National Tourism Organization had reported a 25.8% year-to-date decline in arrivals from China, its largest feeder market. In April, the decrease in Chinese arrivals reached 66.6% year over year. At the same time, hotel supply has grown 4.9% thus far in 2017.
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