Hotel occupancy rates grew throughout Asia Pacific over the past year as consumer demand grew faster than developers could build new properties.
“On a 12-month-moving-average basis, Asia Pacific has seen a supply increase of 3.7%, and at the same time demand has risen by 4.8%,” said Elizabeth Winkle, managing director of STR Global.
The result is positive occupancy growth of +1.1% for the region, which recorded an average occupancy rate of 68.6%.
Bali and Japan were two standout performers.
“Year to date, Osaka reported a strong increase in rate (+16.6%) and reported one of the highest RevPAR growths for the month (+18.9%) in local currency,” Ms Winkle said
“The city and Japan as a whole are seeing improvement due to the devaluation of the Yen and general economic recovery.”
“Bali (+17.3%) and Tokyo (+10.8%) also reported strong year-to-date RevPAR growth.”
Highlights from key market performers for July 2014 in local currency (year-over-year comparisons):
- Mumbai, India, reported the only double-digit occupancy increase, rising 10.7% to 64.2%.
- Jakarta, Indonesia (-22.0% to 49.8%), and Bangkok, Thailand (-21.1% to 56.4%, reported the largest occupancy decreases.
- Osaka, Japan, rose 16.8% in ADR to JPY12,880.81, achieving the largest increase in that metric.
- Bali, Indonesia, followed with an 11.2% increase to IDR1,745,651.85.
- Sydney, Australia, fell 5.1 percent in ADR to AUD179.49, posting the largest decrease in that metric.
- Four markets experienced double-digit RevPAR increases: Osaka (+19.6% to JPY11,244.05); Bali (+18.4% to IDR1,310,345.40); Taipei, Taiwan (+15.4% to TWD3,979.56); and Mumbai (+10.3% to INR4,362.32).
- Bangkok (-20.7% to THB1,663.09) and Kuala Lumpur, Malaysia (-20.0% to MYR206.20), reported the largest RevPAR decreases during July.