eFlyer Asia - Intelligence

Hotel Occupancy Is Down, So Deals Are Up

In May 2009 hotels in the Asia-Pacific region experienced double-digit decreases in their average daily rates, occupancy and revenue per available room according to data compiled by STR Global.

The U.K.-based global research company reported a 14.9 per cent year-on-year decline in average occupancy for the whole region to 55.4 per cent. The good news for consumers is that w ith hotels rolling out promotions and discounts across the region the average daily rate dropped to USD 117.86, down 27.9 per cent on May 2008.

James Chappell, managing director of STR Global said, “While Europe, Americas and Middle East/Africa regions are experiencing a slowdown in the rate of decline, the same cannot be said in Asia. Some of the lowest levels of occupancy — under 50 percent — were reported in Bangkok, Beijing, Phuket and Shanghai, as the markets suffered from post Olympic boom and oversupply.”

Political unrest in Thailand may also have been behind Bangkok and Phuket reporting the largest decreases in occupancy — both saw more than 30 per cent drops.

Chappell noted that Brisbane, Melbourne, Seoul and Sydney reported the highest levels of occupancy — over 70 percent — for May.

Three markets reported average daily rate increases: Bali, Indonesia (+18.5 percent to USD 127.83); Tokyo, Japan (+12.9 percent to USD 228.55); and Osaka, Japan (+8.7 percent to USD129.72).

In India, Mumbai reported the largest ADR decrease, dropping 35.6 percent to USD 164.66, while New Delhi experienced a 31-percent decrease in ADR to USD162.02.