Indian decline hits Asian hotel industry

Cities in the Asian region experienced a general slowdown in terms of hotel performance levels in April 2014, driven by a decline in India. According to the latest data from STR Global, the region’s overall revenue per available room (revPAR) fell 1.6% to US$81.46, as a 1.2% increase in occupancy, to 68.8%, was offset by a 2.7% drop in average daily rates (ADR), to US$118.44. In the Central & South Asia region however, which is dominated by India, revPAR tumbled 8.8% to US$72.44. But some Asian markets were found to have fared considerably better than others. Seoul (+21.6% to US$158.82), Osaka (+13.6% to US$116.24) and Kuala Lumpur (+11.9% to US$91.46) all achieved double-digit revPAR growth, but the Indian capital Delhi saw a 26.5% drop to just US$55.05. Elizabeth Winkle, managing director of STR Global, explained the reasons behind India’s decline. “General elections in India, which last nearly a month and a half, had an impact on hotel performance as business travel traditionally slows during this time. “Quite a few Indian Premier League cricket matches were moved from India to Dubai, which also hurt hotel demand in April,” Ms Winkle added. Elsewhere, Bangkok’s continued unrest also dragged down the overall results. The Thai capital’s average occupancy fell 15.0% to 57.3% – the largest occupancy decline anywhere in Asia Pacific. Seoul (+10.5% to 80.9%) and Shanghai (+10.2% to 74.9%), reported the steepest occupancy growth, while Singapore (-0.2% to 81.5%) remained strong, at above 80%. In terms of ADR, four Asia markets achieved double-digit growth: Osaka (+18.7% to JPY13,269, or approx. US$130), Tokyo (+12.4% to JPY17,537), Kuala Lumpur (+11.4% to MYR412, or US$128) and Jakarta (+10.7% to IDR1.16 million, or US$100). Delhi’s ADR however, fell 9.0% to INR5,947, or US$102. And the year-to-date result shows that Asia’s revPAR is in decline; for the first four months of the year, the region’s revPAR fell 2.8% to US$121.23, compared to US$125.63 in the same period last year. “Asia Pacific performance is slowing,” Ms Winkle confirmed. Source: Travel Daily