Hotels in the Asia Pacific region reported positive results across the three key performance metrics during May 2019, according to data from STR.
U.S. dollar constant currency, May 2019 vs. May 2018
Asia Pacific
• Occupancy: +0.4% to 68.5%
• Average daily rate (ADR): +1.1% to US$96.53
• Revenue per available room (RevPAR): +1.5% to US$66.15
Local currency, May 2019 vs. May 2018
Auckland, New Zealand
• Occupancy: -4.2% to 78.2%
• ADR: -6.3% to NZD178.04
• RevPAR: -10.2% to NZD139.18
The decline in occupancy was mostly due to a surge in new supply (+5.0%). However, STR analysts note that slower demand was also visible during the weekends, whereas corporate weekday business held steady. Minimal growth in demand for the month (+0.5%) was largely a result of lost group demand (10 or more rooms sold together) in comparison with last May. That May decline was a continuation of recent trends, as Auckland has reported a group demand decrease of 15.5% for the first five months of the year. Transient demand (less than 10 rooms sold together) rose 3.2% during the same time period.
Sydney
• Occupancy: -0.9% to 81.8%
• ADR: -2.7% to AUD208.98
• RevPAR: -3.6% to AUD170.91
Performance decreases were mostly due to supply (+1.8%), which outpaced growth in demand (+0.8%). STR analysts note that RevPAR in Sydney has now declined year over year for 14 consecutive months. STR and Tourism Economics’ latest forecast predicts a 2.6% decrease in RevPAR for 2019, after the metric dropped 1.0% in 2018.
