There were major disparities in the operational performance of key hotel markets in the Asia Pacific region during December due to “oversupply, regulatory challenges, political uncertainty, increased demand and financial resurgence”, said Jesper Palmqvist, area director for Asia Pacific at STR Global.

He said the region’s occupancy for December remained flat at 66.3%,  average daily rate dropped 3.7% to USD125.91; while revenue per available room fell 3.7% USD83.46.

“South Korea, China and India generally faced tough tasks to follow up from strong performances in 2012 whereas Thailand, Japan and Australia saw growth across all metrics for 2013,” Mr Palmqvist said.

“Apart from the continuing story that major Chinese hubs still have significant planned growth, the development pipeline has seen a shift with fewer projects in India and more in Indonesia.”

There is also also growth in smaller markets such as Sri Lanka, Palmqvist said.

“In terms of what’s due in 2014 by property class, there is growth in Midscale projects, but majority of new openings will remain in the Upscale and Luxury segments”.

STR said highlights from key market performers for December 2013 in local currency (year-over-year comparisons) were:

  • Occupancy in Mumbai, India, up 10.3% to 74.0%.
  • The public demonstrations in Bangkok resulted in an 11.7% fall in occupancy to 67.0%.
  • Bali, Indonesia (+16.9%), and Jakarta, Indonesia (+16.2%), experienced ADR increases of more than 15% though much of this would have to be due to the fact that rooms are generally priced in USD, which has appreciated significantly against the rupiah over the past year.
  • Room rates in Delhi fell 7.5%.
  • Revenue per available room in Melbourne, Australia grew 21.3% to AUD153.46.
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