- Regional performance down due to comparison with strong month last year
- Beijing hotel occupancy dips with less group business; rate growth continues
- Tokyo’s occupancy falls due to significant supply growth
Hotels in the Asia Pacific region reported mostly negative results across the three key performance metrics during April 2019, according to data from STR.
U.S. dollar constant currency, April 2019 vs. April 2018
• Occupancy: -2.2% to 71.0%
• Average daily rate (ADR): +0.2% to US$102.69
• Revenue per available room (RevPAR): -2.0% to US$72.88
STR analysts note that comparisons for the region were negative due to the performance strength of April 2018.
Local currency, April 2019 vs. April 2018
• Occupancy: -2.0% to 78.2%
• ADR: +1.1% to CNY653.45
• RevPAR: -0.9% to CNY510.98
The 2.0% decrease in occupancy was more a function of supply growth (+1.5%) than softened demand (-0.5%). That slight dip in demand came as a result of less group business in the market as the number of room nights sold in the segment was down 1.5%. Transient demand, on the other hand, rose 4.8%. STR analysts note that the rise in ADR was noteworthy considering the strength of the market’s performance last April. Looking ahead, escalated trade tension with the U.S. could lead to more pressure on economic growth in China and weakened demand for its hospitality sector.
• Occupancy: -1.1% to 91.8%
• ADR: +6.0% to JPY22,231.71
• RevPAR: +4.8% to JPY20,415.85
STR analysts note that demand growth (+6.3%) in Tokyo remained strong, and absolute values in the metrics were significant. Occupancy was down year over year due to a jump in new inventory (+7.5%), which is projected to continue in the lead up to the Rugby World Cup 2019 and the 2020 Olympics. As of April, Tokyo led all markets in the Asia Pacific region with 14,236 rooms under construction and 19,257 rooms in the overall development pipeline.
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