Hong Kong Hotel Performance Drops to Record Lows
In January, hotels in the Asia/Pacific region saw occupancy decline 11.3% to 57.8%, ADR increase 4.3% to $104.03 and RevPAR decrease 7.5% to $60.15.
Courtesy/News Source: hotelnewsresource.com
Hotels in the Asia Pacific region reported mostly negative results in the three key performance metrics during January 2020, according to data from STR.
U.S. dollar constant currency, January 2020 vs. January 2019
Occupancy: -11.3% to 57.8%
Average daily rate (ADR): +4.3% to US$104.03
Revenue per available room (RevPAR): -7.5% to US$60.15
Local currency, January 2020 vs. January 2019
Hong Kong SAR
Occupancy: -37.2% to 56.2%
Average daily rate (ADR): -30.0% to HKD999.88
Revenue per available room (RevPAR): -56.0% to HKD561.85
The absolute occupancy and RevPAR were the lowest levels for any January on record in Hong Kong, while the absolute ADR value was the lowest for a January since 2004. Demand in the market dropped 36.6% for the month, which STR analysts attributed to ongoing protests in the market topped by the outbreak of novel coronavirus (COVID-19). Performance declines have extended into February according to preliminary data.
Occupancy: -0.9% to 84.0%
Average daily rate (ADR): +2.2% to THB5,907.87
Revenue per available room (RevPAR): +1.3% to THB4,959.80
RevPAR increased year over year for the first time in 18 months, due primarily to a lift in ADR—the first jump in the metric after 14 consecutive months of declines. STR analysts note that the slight occupancy dip was due to supply (+2.9%) outpacing demand (+2.1%).
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STR provides premium data benchmarking, analytics and marketplace insights for global hospitality sectors. Founded in 1985, STR maintains a presence in 15 countries with a corporate North American headquarters in Hendersonville, Tennessee, an international headquarters in London, and an Asia Pacific headquarters in Singapore. STR was acquired in October 2019 by CoStar Group, Inc. (NASDAQ: CSGP), the leading provider of commercial real estate information, analytics and online marketplaces.For more information, please visit str.com.