2.6% RevPAR growth for Asia Pacific hotel industry for February 2017, STR data shows

[vc_row][vc_column][vc_column_text]Hotels in the Asia Pacific region reported mixed results in the three key performance metrics during February 2017, according to date from STR. U.S. dollar constant currency, year-over-year comparisons;

Asia Pacific region:

Occupancy: +8.0% to 68.7%
Average daily rate (ADR): -5.0% to US$102.95
Revenue per available room (RevPAR): +2.6% to US$70.67

Local currency, year-over-year comparisons:

Australia

Occupancy: 0.0% to 77.8%
ADR: -0.6% to AUD194.09
RevPAR: -0.6% to AUD151.06

Australia’s performance was stable as supply and demand grew at an identical rate (+1.8%). At the market level, Sydney benefitted from the Chinese New Year as well as Tropfest (7-11 February) events. The market’s absolute RevPAR level (AUD231.57) was the second-highest on record behind only September 2000 (Summer Olympics).

Taiwan

Occupancy: -4.9% to 56.7%
ADR: -8.9% to TWD5,347.32
RevPAR: -13.4% to TWD3,033.41

STR analysts believe that hotel performance was hurt by a decline in arrivals from Mainland China. For January, the Taiwan Tourism Bureau reported a 30.2% decrease in such arrivals while Mainland Chinese visitors made up the largest percentage (31%) of Taiwan’s total international arrivals. February hotel supply growth was marginal (+0.4%), but demand fell significantly (-4.6%).

Thailand

Occupancy: -1.6% to 86.1%
ADR: -4.2% to THB4,091.44
RevPAR: -5.7% to THB3,523.94

Similar to Taiwan, STR analysts attribute some of Thailand’s performance declines to a decrease in arrivals from Mainland China. According to the Association of Thai Travel Agents, arrivals from Mainland China decreased 23.1% from 1 January to 10 March 2017 when compared with the same date range in 2016. Meanwhile, supply growth across the country (+2.7%) was more than double the rate of demand growth (+1.1%). Significant RevPAR declines were seen in two of Thailand’s largest markets, Bangkok (-4.3%) and Phuket (-5.3%).

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