March 24, 2014

Asian hotel rates keep sliding

According to the latest data from STR Global, the region’s hotels experienced a 3.5% decline in average daily rates (ADR) in the first two months of the year, from slightly above US$128 in 2013 to just US$123.87 in January and February 2014.

Elizabeth Winkle, managing director of STR Global, said the performance of hotels across the region varied significantly from market to market, and was impacted by a range of factors.

“Asia Pacific saw positive occupancy growth this month, primarily driven by Northeast Asia – and particularly China. The timing of the Chinese New Year positively impacted performance celebrations occurred in January and February, [but] Bangkok has been impacted by the political situation, so we are seeing a significant decline in occupancy. However, we have not seen a significant impact on the beach markets,” Ms Winkle said.

“The Australia and Oceania markets are hitting high occupancy levels, approximately 90%, including Auckland (91.2%), Sydney (90.1%) and Melbourne (86.0%),” she added.

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