APAC hotel performance shows ‘negative’ results for Q2 2019

New data reveals that hotel performance in APAC shows negative results across the three key performance metrics during the second quarter of 2019.

According to data and analytics provider STR, which samples more than 65,000 hotels and 8.8 million hotel rooms around the globe, hotels in the Asia Pacific have reported negative results. In total, occupancy in the region is down -1.0% to 69.1%; the average daily rate (ADR) is on a decline at -0.7% to USD 97.32; while the revenue per available room (RevPAR) is down -1.6% to USD 67.25.

Jakarta, Indonesia

STR analysts note that the Indonesian general election period in April and May protests and riots had only a limited impact on quarterly performance. Due to the Ramadan calendar shift, May was the worst-performing RevPAR month of the quarter (-17.3%), whereas June produced significant RevPAR growth (+25.3%).

In 2016, according to the STR Pipeline Report, the largest pipeline in Southeastern Asia is in Indonesia with more than 60,000 rooms and over 24% of total rooms developed for hotels in upscale classes. Upper-midscale and midscale chain hotels follow closely with more than 20,000 rooms combined in the pipeline.

Manila, Philippines

Although occupancy fell slightly due to supply growth (+4.6%), strong demand (+3.5%) helped hoteliers push room rates. According to the Philippines’ Department of Tourism, the country saw a 9.8% increase in international arrivals during the first five months of 2019. Additionally, STR analysts note that the Tourism Promotions Board Philippines picked Metro Manila as a Meetings, Incentives, Conventions and Exhibitions/Events (MICE) location, which will help boost performance levels.