Hong Kong performance has been affected by the ongoing protests which have hit tourism and flights, data from STR for July 2019 shows.
Negative results were mostly reported across three key performance metrics in the Asia Pacific region during July 2019. However, Singapore reported a record occupancy at 91.8%, surpassing 90% for the first time on record.
STR analysts note that ongoing protests in Hong Kong have affected performance levels in the market. Hotel demand for the month fell 3.0%, and preliminary figures show a double-digit decline in visitor arrivals during the second-half of July, according to the Hong Kong Tourism Board. That steep drop follows a first half of the year that showed a 13.9% increase in visitor arrivals.
July 2019 vs. July 2018 (local currency)
- Occupancy: -4.1% to 83.4%
- ADR: -9.1% to HKD1,163.21
- RevPAR: -12.9% to HKD970.42
STR analysts note that the transient segment (bookings of less than 10 rooms) produced strong demand growth (+7.1%) during the month, while group (bookings of 10 or more rooms) demand fell 7.2%. According to the Singapore Tourism Board, the country welcomed 9.3 million international visitors during the first six months of 2019.
- Occupancy: +1.9% to 91.8%
- ADR: +0.5% to SGD268.79
- RevPAR: +2.4% to SGD246.80
Across the Asia Pacific region, occupancy remained steady while ADR and RevPAR were down.
July 2019 vs. July 2018 (USD)
- Occupancy: +0.2% to 73.2%
- Average daily rate (ADR): -1.5% to $95.48
- Revenue per available room (RevPAR): -1.3% to $69.91
Asia Pacific hotel construction up 27.0%
STR’s hotel pipeline data for the Asia Pacific region showed 2,109 projects accounting for 470,650 rooms in construction as of July 2019. This represented a 27.0% year-over-year increase in the number of rooms in the final phase of the development pipeline.
Upper midscale projects are up 41.9% in activity year on year, the largest increase of the three major segments.
- Upscale: 123,692 rooms (+23.2%)
- Upper Midscale: 112,400 rooms (+47.6%)
- Upper Upscale: 102,043 rooms (+14.1%)
Five countries in the region reported more than 20,000 rooms under construction. China led with 244,233 rooms, which represented 9.4% of the country’s existing supply, followed by Japan (43,012 rooms, 6.3% of existing supply).
- China: 244,233 rooms (9.4%)
- Japan: 43,012 rooms (6.3%)
- Vietnam: 29,625 rooms (29.4%)
- Indonesia: 26,694 rooms (7.3%)
- India: 24,801 rooms (8.4%)
STR provides benchmarking, analytics and marketplace insights for global hospitality sectors. Their sample comprises more than 65,000 hotels and 8.8 million hotel rooms around the globe.